There’s a multitude of forex traders across the globe. Many of them trade full-time and even more do it on a part-time basis. All of them have one common need: they require a forex trading account in order to trade. Below we will briefly analyze what the best forex trading accounts should be able to offer you.
In the first place you want commissions to be minimized. Do not be fooled: some brokers will advertise that they charge no commission. That is never the case – there’s always a difference between the selling price and the buying price of a specific currency, which is called the ’spread’. You want an account with the lowest spread available, because every cent you’ve got to pay in commission comes off your profits. There are brokers that offer spreads of as little as three pips on a trade.
If you are a novice trader, you should also find a company that offers a free online demo account. This way you can learn the tricks of the trade without risking a cent of real money. Jumping in head over heals with all the money at your disposal is certainly not a good idea.
Another factor that is important when a trading account is considered, is whether they offer access to good quality charting software without charging for it. To trade ‘blind’ without the benefits of charts to see where the market is heading, is trading suicide. You will in fact find brokers that not only give you access to charting software, but also provide live or slightly delayed prices free of charge.
For day traders, live prices are virtually indispensable. If you trade in a longer time frame, e. G., a swing trader, daily price updates are all you really need.
The best forex trading accounts will offer their traders something else for free as well: market news and analysis. Especially if you are new to trading, this is invaluable. If there’s a forum where you can take part in discussions about market trends with other traders, it’s even better.
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