Ruben Rand: Choosing a Forex Broker !!! There are many forex brokers to choose from, just as in any other market. Here are some things to look for: 1. Lower spreads save you money! Low Spreads. The spread, calculated in “pips,” is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don’t charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena. 2. Make sure your broker is backed by regulatory agencies and a reliable institution. Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website, the website of its parent company or through the Financial Industry Regulatory Authority’s BrokerCheck website. 3. Get the tools you need to succeed! Extensive Tools and Research. Forex brokers offer many different trading platforms for their clients – just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental information, economic calendars and other research. 4. Leverage your bets! Wide Range of Leverage Options. Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa). If you have limited capital, make sure your broker offers high leverage through a margin account. If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs. 5. Make sure your broker uses the proper leverage, tools, and services relative to your amount of capital. Account Types. Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with this size of initial capital). The standard account lets you trade at a variety of different leverages, but it requires a minimum of $2,000. Finally, premium accounts, which often require significantly higher amounts of capital, let you use different amounts of leverage and often offer additional tools and services. For live trade examples of binary options trading, please subscribe to my YouTube channle: https://www.youtube.com/channel/UC220CmkLHzZ0nFaI4N2ajqQ and don’t forget to ask your questions by sending direct messages to my Facebook page: http://bit.ly/2IblW9d #NMBO302

Friday, March 27, 2020

Choosing a Forex Broker !!! There are many forex brokers to choose from, just as in any other market. Here are some things to look for: 1. Lower spreads save you money! Low Spreads. The spread, calculated in “pips,” is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don’t charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena. 2. Make sure your broker is backed by regulatory agencies and a reliable institution. Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website, the website of its parent company or through the Financial Industry Regulatory Authority’s BrokerCheck website. 3. Get the tools you need to succeed! Extensive Tools and Research. Forex brokers offer many different trading platforms for their clients – just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental information, economic calendars and other research. 4. Leverage your bets! Wide Range of Leverage Options. Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa). If you have limited capital, make sure your broker offers high leverage through a margin account. If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs. 5. Make sure your broker uses the proper leverage, tools, and services relative to your amount of capital. Account Types. Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with this size of initial capital). The standard account lets you trade at a variety of different leverages, but it requires a minimum of $2,000. Finally, premium accounts, which often require significantly higher amounts of capital, let you use different amounts of leverage and often offer additional tools and services. For live trade examples of binary options trading, please subscribe to my YouTube channle: https://www.youtube.com/channel/UC220CmkLHzZ0nFaI4N2ajqQ and don’t forget to ask your questions by sending direct messages to my Facebook page: http://bit.ly/2IblW9d #NMBO302

Choosing a Forex Broker !!!

There are many forex brokers to choose from, just as in any other market. Here are some things to look for:

1. Lower spreads save you money!

Low Spreads. The spread, calculated in “pips,” is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don’t charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena.

2. Make sure your broker is backed by regulatory agencies and a reliable institution.

Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website, the website of its parent company or through the Financial Industry Regulatory Authority’s BrokerCheck website.

3. Get the tools you need to succeed!

Extensive Tools and Research. Forex brokers offer many different trading platforms for their clients – just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental information, economic calendars and other research.

4. Leverage your bets!

Wide Range of Leverage Options. Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa).

If you have limited capital, make sure your broker offers high leverage through a margin account. If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs.

5. Make sure your broker uses the proper leverage, tools, and services relative to your amount of capital.

Account Types. Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with this size of initial capital). The standard account lets you trade at a variety of different leverages, but it requires a minimum of $2,000. Finally, premium accounts, which often require significantly higher amounts of capital, let you use different amounts of leverage and often offer additional tools and services.

For live trade examples of binary options trading, please subscribe to my YouTube channle:
https://www.youtube.com/channel/UC220CmkLHzZ0nFaI4N2ajqQ

and don’t forget to ask your questions by sending direct messages to my Facebook page:
http://bit.ly/2IblW9d

#NMBO302

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Ruben Rand

Friday, March 27, 2020

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