Forex Trading Software: This is the backbone for online forex currency trading. Ensure that the forex trading platform is state of the art. Look out for the following important feature.
- IT infrastructure and user friendly features.
- Real time quotes, multiple windows, types of orders, number of currency pairs and speed of execution of orders.
- Charting, technical analysis and other analytical tools.
- Research and Analysis: There are ample value add on services like tips on entry and exit points, forex indicators, real time access to fundamental and technical research reports and global news broadcasts. Find out are there any extras for these services?
Demo Account: Most of the forex trading brokers offer you a free practice account or a demo account for at least 30 days. However if it is not offered then insist upon it. Demo account enables you to get an in-depth idea about forex trading platform.
Account Related: Read and understand all the paper work before signing any documents. Find out (1) What is the minimum balance requirement (2) What is the margin and leverage and (3) Whether the back office is fully online. Nowadays you can start with as low as 250$ account and leverage ratio as high as 200:1.
Trading costs: There is only once cost – Bid/Ask spread. Pips charged by the forex brokers vary from 2 to 5 Pips, lower the better. Ensure that there are no other hidden costs and charges.
Customer Support and Reputation: I will not deliberate much on this factor as it can be ascertained only after the experience. However you can take the reviews from friends or internet bloggers community.