Leverage

When choosing a broker the amount of leverage doesn't matter – Any broker will give you 100 – 200:1 and that is more than enough for any trader in fact, you should NEVER use more than 10 – 20:1, which is ample for most traders. Many traders think that if a broker gives them high leverage, there being generous but the fact is there not, it makes good business sense. The reason for this is most brokers are market makers and the money you lose ends up in there pocket. Over leverage in currency trading, causes more traders to lose than any single other reason and the old saying “give them enough rope and they will hang themselves” applies here!

Location and Regulation

Look to see where the broker is located and the protection you have under regulation. The best regulatory bodies are the CFTC in the USA and the Financial Services Authority in the UK, although there are others but if you pick regulation outside these areas, check what protection you have. With the number of Forex brokers who disappear or go bust, its always best to trade with a regulated company.

Trading Platform

You want a reliable and easy to use trading platform, so take your time and test it out with a demo account. All trading platforms are not equal in terms of performance, so take you time and check a few out and then go with one your happy with.

Spreads

Spreads are your cost of doing business and you should pay no commission, just the spread. Forget brokers who tell you they offer commission free trading – your cost is the spread and on the major currencies, you should be looking for two pips, there is no need to pay more than this.

Money Deposits and Withdrawals

Your money should be available instantly should you require it and transfers in, should appear quickly check the methods of deposit and withdrawal and make sure its quick and believe me, there are some brokers who have very slow payment options.

Customer Support

Customer support should be available 24/7 and you should test it out before you trade. Ring up and ask a few questions and see how knowledgeable the staff are and make sure your happy with the answers you get.

Research and Advice

If brokers made money, they wouldn't be brokers – they would be traders! Most broker research simply reflects the news and is of poor quality so ignore it and don't even consider it when you are looking for a broker to trade with.

Final Words

If you follow the above check-list, you will soon find the best currency trading broker to suit your needs and have a reliable partner. to help you turn your currency trading strategy into some great long term profits.