The Forex market is similar to the equities` market. Some important differences exist, however. Two or
more accounts are offered by majority of the brokers.
When one decides to trade on the Forex market, he should choose a broker. In this regard, here are some things
to look for:
- Low spread it is the difference between the purchase price of a currency and the price at which it can be
sold. This difference shows how Forex brokers make money while they do not charge a commission.
- Quality institution Forex brokers
are unlike equity brokers who are normally related to the
lending institutions or the banks. The reason is that a large amount of capital is
required for operations. They are registered with the Futures Commission Merchant
- Tools and research A wide variety of trading platforms are offered by the Forex traders.
Among them are the technical
analysis tools, real-time charts, support for trading systems, and real time news
and data. It is a good idea to test different trading platforms by requesting trials prior to committing to any
broker. Economic calendars, as well as fundamental and technical commentaries are often provided by the brokers
- Leverage options ranging widely the price deviations are
just fractions of a cent the leverage. Leverage represents the amount of money a broker will lend one, shown as
a ratio between the available total capital and the actual one. A broker will lend to the borrower one hundred
dollars for every dollar of actual capital when the ratio is 100:1. The risk of a marginal call is lower when
the leverage is low.
- Types of Accounts - The mini account is considered to be the smallest type of account. It has a required
minimum of $250. The Mini offers a high leverage amount, which one is going to need in order to trade with such
a small amount of capital. The standard account has initial capital minimum requirement of $2000.
Free charting webinarMon, Nov 18th, 2013 12:00 PM - 1:00 PM ESTDuring the 60 minute session Paul Coghlan, founder of Coghlan Capital, looks at current charts for currencies, precious metals, US indices, highlighting turns and low risk entry points using the Median line analysis methodology. Median line analysis reduces risk and increases the chartists ability to see trend direction, trend
strength and highlight entry and exit levels. Seats are limited so be sure to reserve your spot today. The webinar will be recorded, by signing up you'll receive an email with the webinar replay afterwards. |