Placing your money in someone else's hands is a serious matter, thus you have to be extremely selective. The first thing that you must make sure is how good their services are; secondly, you must ensure that they do their business honestly. These two factors are also applied in selecting the best forex broker. What you should do now is making a forex broker comparison, so go ahead and look for some potential candidates.

See these details in your forex broker candidates and see who offers the best services:

Check out their leverage

Bigger leverage indicates bigger opportunity to make more profits, but it also means greater risk when your analysis goes wrong. Leverage is certainly an essential aspect, but don’t choose a broker simply because they provide bigger leverage compared to the others.

I believe 1:200 leverage is adequate. Several foreign exchange brokers even offer up to 1:400. Well, it’s your call. Just be sure to do a basic calculation before taking a position and put your stop loss appropriately to avoid being wasted by the market movement.

Check out their spreads

For long term trader who aims for huge profits, another 1-2 pips in spread is not your biggest concern, but for day trader or scalper, tiny spread can really make their life easier. Based on their spreads, forex brokers could be broken down in 2 groups:

- Fixed spread; this sort of broker uses fixed spread and get profits from that.
- Floating spread; this sort of brokerage provide you with real spread (which constantly changing) and ask for commissions for each of your trade.

Floating spread may looks lower, but it isn’t always more rewarding. Get a practice account and test them out yourself. How many times do you have spread that less than the common fixed spread? Does the floating spread well worth the commissions?

Test their trading platform

Trading platform is a solid reason to pick a broker and ditch the other. Several trading platforms are definitely more dependable and more sophisticated than the others.In such cases, you should put in priority on fx brokers that provide such trading platforms.

There is no way to find out before you try them, so I suggest you open up a practice account and test many of them. I would recommend the popular MT(MetaTrader) as my primary choice, but some broker’s trading platforms can be very convenience to use.

Minimum deposit

Although I don’t believe that $25 will get you anywhere in currency trading, some people might have different opinions. They might think it is good for practice or training purpose where you have real money at risk. That way, you can learn a little about trading psychology and stay calm when the market goes at the wrong way. Obviously, you might not be as calm if it was $10,000 at stake, but it’s an excellent start anyway.

There are many aspects in comparing forex brokers, but I think these 4 are the biggest concern. The goal here is having a broker that can provide your all trading needs. That way, it'll be easier to trade and making profits. One more important thing: don't forget to check their credibility; you don't want to place your money in the hand of someone who will scam you.

Author's Bio: 

Find out more about currency trading broker and how you can identify a scam broker in online currency trading broker. Additionally, have a look at my prime broker recommendation on top online broker.