Before the start of currency trading, a speculator needs to choose a broker to cooperate with. Usually, traders take into account only the basic principles of choosing a dealing center, without paying due attention to additional trading conditions.There are several points in the work of a Forex broker, which determine the success of currency trading and the final result of the speculator’s work. They are:1) Currency spread size.Each broker charges a certain commission on the trades executed. Its size differs in different dealing centers. The minimum spread size varies from 0.5 to 5 points. It can be fixed or floating. Fixed spread should be chosen in case of using highly liquid trading instruments, the amount of commission in this case does not exceed a couple of points. For trading in low-liquidity pairs, it is better to use a floating spread and track the moments when its value will be minimal.2) Order execution speed.This aspect is extremely important, especially for scalping traders who need to execute their orders quickly.An order can be executed in two ways. In case of instant execution (Instant Execution), the broker undertakes to execute the order at the price that is displayed on the screen of the trading terminal. However, in case of slippage, the trader has to send the order again, which results in the order being executed at a different price.In case of market execution (Market Execution) the price may change in the market. The order will be executed at the market price, not the one requested by the trader. In order to prevent the difference between the expected and actual opening price from being too large, the speculator can set the size of the allowable deviation, for example, 2 or 4 points. This option is perfect for medium or long term trading.3) Margin Call.This parameter indicates the level of marginal risk, after which the broker closes the position independently. This value is not always specified in the specifications of the dealing center, but it plays an important role in trading, especially when using risky strategies. For example, if the deposit amount is $100 and the Margin Call level is 30%, the broker can close the position when the losses reach $704) Stop Out.This is the level of automatic order closing. Thanks to its use, the broker provides itself with protection against loss of credit funds issued to the trader when using margin leverage. This parameter usually ranges from 10 to 30 per cent.On our site there is a big section – “Rating of brokers” in which you can choose the company by criteria.
01 Nov