Step 1: Choose our Forex Trading method
Choosing a Forex Broker will be guided by our trading strategy. There are ways to choose a Forex broker as follows:
- Short-term trading, choose a broker with a low spread and a minimal commission fee.
- Long-term trading, choose a Swap-Free Broker.
- Event Trading, choose a Forex brokers that delivers orders quickly, not re-quotes.
Step 2: Study the conditions of the Brokers
Once we have chosen a Forex broker, we need to study the conditions of the Forex broker to match the trading strategy, such as comparing swap and spread, testing order execution, however, each broker has some different conditions, for examples:
- Some Forex Brokers only offer 7 days Free Swap.
- Some Forex Brokers are Swap-Free but their Commission Fees are high.
- Some Forex brokers have very low spread fees but high commission fees for trading.
Step 3: Compare the Brokers in mind
Forex Broker comparison is an important process. When studying the conditions of the Forex brokers, you need to compare 2-3 brokers, then test the execution of orders, for examples:
- Sending commands to the test Re-quotes
- Sending orders to hold overnight to test the Swap Commission.
- Comparison of deposit and withdrawal conditions
Step 4: Test demo and real account with minimum deposit
Depositing money into Forex trading is also important. By depositing money into the trade to perform the following tests:
- Deposit and withdrawal conditions
- Deposit and withdrawal costs for Forex trading
- Bonuses and usage, whether they are tangible or not.
- Deposit and withdrawal speed
- Reliability of deposit-withdrawal and convenience.
Summary of selecting a broker
Choosing a Forex Broker should therefore consist of important selection processes as aforementioned are
- Choose our Forex trading method.
- Study the conditions of the Forex brokers.
- Place an order to compare the Forex brokers.
- Study the conditions for depositing money into the Forex broker’s accounts.