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Choosing a Broker...


Please read this disclaimer as it is very important that you understand risks associated with Forex trading.

Choosing a forex broker isn't difficult, but don't rush the decision. Check out a few, and always get a demo account first to make sure you're happy with the way everything works before sending off your opening balance.
Main points to consider will be : Spread - Execution - Trading platform - Support - Account types

When checking out a forex broker, look for these details :

1. Required Margin

Usually 1-4%. For little investment (300$ initially for example), a 1% margin or lower is suitable but be careful using such Margin with higher amounts as it reflects the leverage(*) you can use as therefore the risk associated with positions.

2. Their spreads for the currencies youíll be trading

The EURUSD will usually be 3-4 pips but some broker even propose 1 pip or lower on EUR/USD.

3. Amount of funds required to start an account

I you are a beginner in forex trading, you should begin with very low investment such as 300$ that is suitable for a micro account type.

4. Any extra fees excluding spread

Many donít charge extra fees,like rollover fees for positions held overnight, but some do.

5. Read their rules

Let read the details of their rules regarding the closing of positions when a margin call occur and their reglementation about transfer, withdraw, fees etc...

6. Look how is the trading platform and check support services

Practice on their demo account and see if it works well on every computer you want to use it (at work and at home..). Let's have a look at their FAQ and do not hesitate to ask any question to see their response time and quality of the contact.

7. How established the company is

You can verify Commodity Futures Trading Commission (CFTC) registration and NFA membership status of a particular broker and check their disciplinary history by phoning NFA at (800) 621-3570 or by checking the broker/firm information section (BASIC) of NFA's Web site at www.nfa.futures.org/basicnet/ for the US or any regulation organism from the broker's country.
You can also have a look at forums, newgroups or portal website related to Forex.


Some brokers...

We listed a few broker providing the necessary to trade efficiently and beeing convenient for beginners specific needs (account type, low initial investment, etc).

Micro-account or flexible contract size

With these brokers, you can take positions with low contract size such as $1000 or lower and open an account with less than $500 on it. A pip on EUR/USD, for example, is then $0.1 and the required margin (if 1% margin required) only $10..so with $10,you can already open a position.
Note : Most of these brokers also propose mini-account or standard account type.

http://www.fxprice.com/en/start.htm : Flexi-contract, $250 minimum deposit.
http://www.fxsol.com/ : Flexi-contract, $250 minimum deposit.
http://www.alpari.co.uk/ : Micro-account, $200 minimum deposit.
https://fxtrade.oanda.com/ : Contract as low as $1, no minimum deposit, low spreads.
http://www.mgforex.com/ : Flexi-contract, $500 minimum deposit.

Mini-account

These accounts provide a minimum contract size=$10000, it means a $1 pip value for EUR/USD and therefore you need (if required margin is 1%) $100 as available margin to open position. This type of account should be used for initial investments around $1000 or higher...if you are nex to forex, we advise you to use micro-account type instead.

http://www.cmsforex.com/ : Mini-account, $200 minimum deposit.
http://www.fxcm.com/ : Mini-account, $300 minimum deposit, low spreads.


We have now an agreement with FXCM in order to act as referring broker.
If you open an account with FXCM and if you trade with that account,
you will receive a 50% rebate on your subscription (6 months for the price of 3, almost nothing in fact)
... which will then become totally free on the second period if you go on trading with FXCM.
Opening an account at FXCM is very easy :
Apply now or by fax.


Standard account

These accounts provide a minimum lot contract size=$100000, it means a $10 pip value for EUR/USD.

in addition to the broker listed above, we can advise this one :
http://www.realtimeforex.com/ : $2500 minimum deposit.
or http://www.clickforex.com/ : Ä1000 minimum deposit, same quality platform as realtimeforex.

Take time to test which broker suits best your trading style and expectations as most of them propose a demo account.


(*) Without proper risk management, this high degree of leverage can lead to large losses as well as gains.


'Without proper risk management, a high degree of leverage can lead to large losses as well as gains.'
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