The Pros and Cons of Trading a Forex Trading Demonstration Account

Trading is a skill that takes time to learn. Think of it like Boxing it’s also a skill that takes time to learn. If you get into a professional boxing ring without any training, you’ll get beat up physically! If you get into the Forex ring without any training, you’ll get beat up financially!

The similarities are that both the examples are Skills, and both require psychological preparation. The difference is that one is physical and the other is financial.

We can get over a physical beating usually in a few days or weeks, BUT a financial beating can be devastating and easily affect us for the rest of our lives, not only does it hurt our hip pocket but it can cause problems with our relationships and family. So when we get into the Forex ring we have to be prepared.

The Professional Boxer

When a professional boxer gets in the ring he has already been practicing in a safe environment usually for years, this safe environment is where he can make mistakes without having medical treatment. He can also spar with other opponents that have more skills and experience then he does and he learns from them. He also has someone there to watch him and give advice and guidance.

Then when he is ready, he gets into the ring and boxes for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied his opponent and done his home work, so he KNOWS he has a good chance. He can still lose this round but if he wins most of them he will take the money home.

BUT! What about the psychological side? Does he fear getting into the ring? Sometimes! But he’s aware of it and he can control how it affects him in a way that is beneficial. Will he be thinking about the money he’ll make? Or will he be thinking about the fight as is happens and planning his next moves during the breaks? He’ll be analyzing the results from the previous rounds and making changes in his strategy for the next round.

The professional Trader

Can you see what’s coming next? If so than, you’ve learnt to analyze what you read and form a projection into the future. (A very valuable skill for the FOREX Trader)

A forex trader, like the professional boxer, will not get into the Forex trading ring without being prepared first. He might not spend years practicing in the Demonstration Account, but he will at least have spent a month or two or three, sparing with the Forex Market in a safe environment that he won’t get beat up in.

He’ll practice trading forex against all the other traders and learn from them, and he’ll also have someone watching him and giving advice, and guidance.

Then when he is ready, he’ll get into the Forex trading ring and trade forex for real, he’s accepted the risk and KNOWS that he can get hurt, but he’s also studied the Forex market and done his home work, so he KNOWS he has a good chance. He can still lose on this trade but if he wins most of the trades he will take the money home.

BUT! What about the psychological side? Does he fear getting into the forex trading ring? Sometimes! But he’s aware of this fear, but he can control how it affects him, in a way that is beneficial to his forex trading. Will he be thinking about the money he’ll make? Or will he be thinking about the things that are influencing the market as is happens and planning his next trades while he waits for the results? He’ll be analyzing the results from the previous trades and making changes in his strategy or continuing with the one that’s working, and planning for the next Forex Trade.

So it” easy to see that trading with a Forex Trading Demonstration account is something everyone should do before getting into a live Forex Trading account.

The practice account will give the trader MOST of the skills necessary, to be able to trade profitably, giving them the training ring to spar in.

BUT A BIG WARNING!!!

Like the Boxer the Forex trader has learnt to manage his emotions, this is often overlooked by new Forex Traders. BUT is probably what separates the successful investor from the ones that keep getting beat up! If you are considering getting into the Forex trading Ring, then be sure to practice first, and find all the information you can about controlling your emotions.

Fear, greed, impatience, are the main culprits of financial bashings, so keep an eye out for them, and learn how to beat them before you get in the ring with them.

What's Day Trading?

Day trading consists of the direct opening and closing of stock positions with major stock exchanges, either using a computer on the trading floor of a branch office of a day trading firm, or using one's home or business computer to access an internet broker. The keyword in this definition is direct. In day trading, a trader has direct electronic access to NASDAQ market maker or NYSE specialists.

The market makers are NASD brokers and dealers who buy or sell NASDAQ stocks for the accounts of others, engage in the securities business for their own proprietary accounts. In essence, the market makers are stock merchants. One NASDAQ stock will have many market makers who are continuously trading in that stock and thus making a market for that stock. On the other hand, one NYSE stock will have one assigned NYSE specialist. The role of the NYSE specialist is to maintain a fair and orderly market in that security. The specialist may act either as a broker and execute orders for other securities brokers or as a dealer in a principal capacity when trading for his or her wo0n account. The specialist will take on the role of a principal infrequently in order to maintain stock marketability and counter temporary imbalances in the supply and demand of that security.

The day trader does not need a stock broker. The trader is not using a telephone to call a stockbroker, and the broker is not relaying that order to the brokerage firm's order desk. The clerk is not routing that order to the market maker. Day trading firms eliminate all that. Consequently, day trading firms have eliminated time delays and most of the expenses associated with middlemen processing trade orders. The day traders are their own brokers, and their order executions are fast and affordable.

The day trader can simply key in the stock symbol on a computer that has specialized trade execution software, press the appropriate function key, and buy or sell shares of stock on a major exchange. The software used by the day trading firms for order execution is relatively user-friendly7 and provides an efficient interface between the stock exchanges and the day trader.

Electronic Currency Exchange Matt Gagnon, Warren Barnes and Gary Jezorski

You first find out about the E-currency Exchange Program. You are not sure sure exactly what it is but you immediately realize it's an opportunity where you could double your income without much work.

You first realize that making money with the E-currency Trading Program may not be such a simple task to learn. You need to have a good strategy to follow to make money, and you have to be patient and reinvest your profits to see your money grow to 5 or even 6 figures.

The great thing you realize that keeps your attention focused is that with Electronic Currency Exchange anyone can get started, and then make money from day 1. Here are some of the facts about this system:

-At the time of this writing, I started my investment 32 days ago and it has now had a 100% ROI.

-Everytime you put money into your portfolio, the dxinone system rewards you by adding 60-80% extra of what you invested.

-Making money with this system takes no special skill. It only requires for you to have a basic understanding of how the E-currency Trading Business works and how to put your money in.

-You can start with as low as 50 bucks, but to be honest you'll be sorry you didn't put more. Your money will grow really fast.

Do you feel you should be earning more? Are you fulfilling what you were meant to be in this life? Do you think you could get there easier if you had more money and more time? These were some of the questions you start to ask yourself. You realize that, like many people getting started on Electronic currency exchange, you want more out of yourself and this is a way to get it.

Want to have more time for your friends? Want to be able to spend time with the people you enjoy? You know more money and more time allows you these things.

If these are the things you want, then the the E-currency Exchange Program is a vehicle that can help you get there.

Let's assume you've made the decision to start your portfolio with Electronic Currency Trading. You now want to make money, and you want to make it right away. What better way to start right? We have one path we recommend: Getting started with a training program. There are courses like Gary Jezorski's Currency Exchange Profits, Matt Gagnon's Mazu and Warren Barnes's Learn-ecurrency-exchange, some of these courses teach you everything you need to know and they put you up to date with the system in a way that would take more time if you tried to learn it for yourself.

If you are seriously interested in earning more money, I can say you can have that for yourself today, think about the things you really want, and if you think you deserve a second income, my advice is to get started right now. It might just be possible you will find it quite rewarding.

A Guide to Forex Courses

For anyone interested in forex trading, education is essential. There are many online forex courses. There are “home-study” programs, seminars, “webinars”, books, DVDs, free demo accounts and more. In fact, with all the information that is out there, it would be silly to begin trading without first educating.

Some of the best sites will, in fact, offer a complete package of forex trading courses that will take the beginners, who know little or nothing about forex trading, and teach them everything they need to know to become successful forex traders. In the home study forex courses, students learn vocabulary and types of orders. They learn to read forex charts, an important part of successful trading. The online forex trading courses teach investors to grow their accounts by determining market direction. Online mentoring provides access to a professional trader and one on one tutoring. A two day on-site forex course sometimes the program to reinforce everything learned.

Other interesting and helpful services that most online forex trading platforms offer is the “demo” account. The demo accounts are like a mini forex trading courses that will help new investors learn to trade quickly. These accounts are set up to work like a regular account, but the trades are not real. With no risk, you can learn to place orders and set stops, watch your profit increase (or your loss) as you watch exchange rates changing. These accounts also include charts with live streaming information. It is still wise to choose one of the many forex courses available, but when used along with a demo account (you usually get a 30 day trial) everything makes a lot more sense.

There are many books written on the subject of forex trading, but most of these focus on forex strategy. Before you can plan a trading strategy, you need to learn how to trade. Forex trading courses are far superior to reading a book.

It is commonly stated that 90-95% of all new traders lose their initial investment in the three to six months following their first trade. Sometimes even seasoned investors lose focus or forget to change their trading plan when indicators call for it and lose “big”.

Forex courses are no guarantee of big profits, but professionals agree that education reduces risk in an already risky market.

Discover Forex Daytrading

A day trader is any trader who makes several trades per day, buying, selling, entering and closing out a trade in the same day. Forex daytrading is the same thing, only instead of trading stocks, forex traders buy and sell currencies.

Forex day trading is usually referred to as simply forex trading, but all day traders, whether they trade in stocks or currencies, attempt to increase their return by taking advantage of small price (stock) or rate (currencies) changes. Unlike buying stock in a company and waiting over the years as the company grows and the stock value increases, maybe even waiting on retirement to sell the stock or planning to leave it to children or even grandchildren, forex daytrading is not an investment that you make and then leave it alone to let it grow over time. It will not grow, exchange rates fluctuate too quickly.

Forex day trading requires an investment of time as well as money. Time must be taken to educate oneself in forex daytrading.

Until internet forex daytrading became so popular, only large financial institutions and corporations were involved in trading foreign currencies. Some people trade forex as a hobby and some make a career out of it. Forex daytrading professionals are intelligent well-educated people. They understand the trends and charts that make forecasting possible.

Forex day trading is similar to trading in the futures market, except that the liquidity is higher and the trading costs are lower. Also, because there is no central physical market, like the NYSE, forex daytrading can be carried out at all hours of the day and night. There is always a bank open somewhere in the world. In the world of forex day trading there are no exchange fees, no commissions paid to brokers, and low transaction fees. All of the fees and commissions reduced profitability for conventional traders in the futures market.

Sign on to any computer, go to any website search engine and type in forex daytrading, forex trading or simply forex. Most of those websites that come up offer platforms for trading. Some simply offer information. Others offer forex day trading education. This is where the forex trader lives, online, not on the floor of the NYSE. Forex daytrading can be risky or profitable, exciting or frustrating, but never, never boring.

Better Understand Technical Analysis and Some Indicators

We’re focusing on technical analysis in this article with a description of some of the important indicators.

We could say, all wealthy traders use technical analysis but not all technical analysis traders are wealthy although T.A. is the most precise way of trading the Forex market. It’s also useful note that fundamentals play their part in indicating whether a price will move up or down. It gives you the edge over other traders.

Technical Analysis is so powerful because of a few reasons

1) it represents numbers. All information and its impact on the market and traders is represented in a currency’s price.

2) It helps to predict trends and the foreign exchange market is very ‘trendy’.

3) Certain chart patterns are consistent, reliable and repeat themselves. T.A. helps us to see them.

Here’s one way of putting technical analsysis into perspective (wish I had a dollar each time I said ‘technical analysis’). We all know that prices move in trends. Research has shown that those that trade ‘with the trend’ greatly improve their chances of making a profitable trade.

Trends help you become aware of the overall market direction and often rescue us from less then profitable entry points. I attended a 2 day course costing me over $2500 AUD and the biggest thing I learned from it was the need for discipline and emotional control. The content was so basic that within the next 3 or 4 articles, I would have covered all of it. So learning the ‘tools of the trade’ the technical indicators and their applications will help you to diagnose what the market is doing but even then you need to expect ups and down and trade with emotional control.

Stay with the trend, follow the price.

Find the price of the currency pair. If EUR/USD is 1.4224 and moves to 1.4180 then 1.4090 then the market is in a down trend. Concern yourself only with what the market IS doing not what it might do. Listen to the markets and the indicators will backup what they are telling you.

Moving Averages.

Tell you the price at a given point of time over a defined period of intervals. They are called moving because they give you the latest price while calculating the average based on the selected time measure.

They lag the market so to give you an indication of a change in trend, use a shorter average such as a 5 or 10 day moving average. By combining a shorter term and longer term M.A. you can detect a buy signal when the shorter term crosses the longer term moving average in the upward direction. Or a sell signal if it crosses in a downward direction. For example, you could use a 5 day versus a 20 day moving average or a 40 day versus a 200 day moving average.

There are simple moving averages, linearly weighted which gives more importance to the recent prices or exponentially weighted. The latter is a favourite because it considers all prices in a time period but emphasizes the importance of the most recent price changes.

MACD

Based on moving averages, a MACD plots the difference between a 26 exponential moving average and a 12 day exponential moving average, with a 9 day used as a trigger line. If a MACD turns positive when the market is still plummeting it could be a strong buy signal. The converse also works.

HOME::Finance/Currency-Trading

Most people have heard of trading, like the New York Stock Exchange, and Forex trading isn’t far off from that. The difference is, is that Forex trading is the trading of currencies, not stocks. It also has a larger volume than stock and bond markets combined! As with stocks, it is a high-risk investment, but it can also have an extremely high return, easily doubling investments in minutes.

The best part about Forex trading, is that it is done using a margin. That is, you don’t need the full amount to buy a currency. A Forex trader can buy $100,000.00 with just $1,000.00. This allows traders to make huge profits with minimal investment. And the Forex market is open to all types of investors, not just big organizations, and banks.

The best place for an investor to start when considering the Forex market, is the Forex community. Research is key to understanding Forex trading. Consulting Forex forums and community boards can be extremely beneficial.

The next thing to do would be to choose a system. A system, is a specially designed method, software, or course developed by professional in Forex trading. There are many systems out there, so research must be dome to make sure the system fits your needs. Before purchasing a system, you should ask them a few questions like, how long have they been in this business, and and if there is a trial version available. Make sure that they have customer testimonials too.

By going to Forex forums, and chat rooms, one might be able to find out what system others are using, or what systems are recommended most. Most professional traders believe that having a trading system is an important factor in establishing a stable revenue in the forex market. Systems tell investors when, and what, should be done in each trading situation.

Another thing that an investor will need is a broker, to assist with transactions. There’s a wide variety of brokers, so be prepared with questions about their credentials. Ask them about their leverage, and their spread. As these are both determining factors in how much money the investor can make with each investment. The investor may also choose to handle transactions themselves.

An investor also needs to master analysis, and form a strategy, to get a competitive edge, and improve their odds. They need to learn to recognize the different factors that affect the Forex market. A person has a much better chance of success at trading forex, if they do their research, and know what to look for. And, in conclusion, it doesn’t matter if a person is experienced or a beginner in the world of Forex!

Forex Is The Best and More Lucrative Home Based Business?

The first reason why you should trade the forex market is because it is the most lucrative home based business. Although It is not a new market, it is still unknown by non traders. It is more amazing when you know that most of the traders are not aware of the huge opportunity of the forex. The Forex or Foreign Exchange Currency Market is open to the public since 1998. With the economic situation today and the fear of most of the people worldwide to wake up a morning and be jobless, without resources to feed their family, there is an increasing need in lucrative home based business.

On another hand, it is really difficult to find a real opportunity which will allow you to make a living from your home computer. You got to put hours of recherches and invest some hard earned money, with the fear of being involved in a scam company. Let' s say you found a good opportunity, and honestly, there is a lot of legitimate business you can make a lot of money if you are serious. But, is that what you really want? Most of the opportunities on the web today, even if you make big profits, are held by someone else. That mean that when you participate in those turnkey businesses, you do not have any control.

It is really amazing to see all these people who want freedom, more time with their family and friends, more time for their favorite hobbies... and the most important, fire their boss, going the same way. To understand, they want to be free, they found that on the web you can make money and be free, all that they need, but if you look at the situation, 80% of these people fired their boss, to meet another boss on the Internet! A virtual boss, who is making them work, but they don't feel it, because they have the impression to be free, they work wherever and whenever they want, and better than all that, they have never seen their boss. People make money in these programs, they may win $5000 a month or more but actually, the owner of the program is making tons of money.

There is a way to make much more money on the web that you think now, and Internet seekers and people in general should discover trading, specially the forex market. While the word market could intimidate some people, believe it, no one must be afraid about that, and think about the difficult stock market, or commodities, futures... The forex market which is also called FX is not really as difficult as it seems. There is not that much technical vocabulary to learn, and the risk is considerably low, if you compare to the other markets like the stock for instance.

The fact that home businesses seekers should really consider is that you can choose at which time to trade, and where you want to trade; you need only an Internet connection, and that's it, you are ready to tape in the biggest market of the world with $1,5 trillion activity everyday in the same way banks and large corporation do it and it is not difficult at all. Rather it is simple, and the methods already tested by serious traders will help you in your adventure.

To trade forex, you don' t need to have a lot of money to start( just $300 will be a good start), you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending because of lack of liquidity, you will not have to work all during the day.

What Is Forex Signal Trading?

Designing a forex signal trading system requires technical analysis of market indicators, statistics or trends. Without a forex system, a trader tends to let his/her emotions get in the way. Forex signals are used to take the “emotion” out of the equation.

A new trader can design his own forex signal trading system after getting some education and practicing with a “demo” account. Most websites with trading platforms offer daily newsletters which they post on their sites or send to the traders e-mail address. These newsletters are generally from a professional trader, broker or market analyst and can prove very helpful, whether the trader has a forex system or not. The ultimate goal, of course, is to make successful (profitable) trades by using all available information.

The type of forex trading signal or strategy that a trader uses depends largely on the type of trades that he/she is interested in making. There are short, medium and long-term traders and each have advantages and disadvantages.

A short term or day trader capitalizes on very small changes in rates that they expect to happen each day. The forex system for the short term trader will focus on the study of daily charts, indicators and even time of day. A long term trader needs large amounts of capital to cover daily fluctuations and his forex system will focus on long-term fundamental factors. A long-term forex trading system will be quite different from a short term forex trading system and the indicators that signal each to make a trade will be quite different.

The majority of traders fall in the medium term trader category. These traders have the least risk and generally need less capital than the other types, but their trading opportunities are limited. Forex signal trading for the medium term trader involves all of the indicators used by the day trader and the use of additional indicators and studies to find the best entry and exit points. Generally the more indicators used in a forex system, the more reliable the system should be, but fewer trades will meet the traders criteria.

There is an enormous amount of information available on the web to help new traders design a forex system. There are seminars, newsletters written by pros that include entry and exit signal points, free charts, and much more. There are chat rooms and blogs to get an idea of what current traders are doing and to hear about their successes and failures. Reports say that 90-95% of all new traders will lose their initial investment in the three to six months following their first trade. To reduce that risk, new traders must educate, practice and use forex signal trading to take the emotion out of the equation.

A Mini-Guide To The Managed Forex Account

A managed forex account is forex made easy. It is especially tailored for those investors who do not have the time or desire to monitor their own forex account. Many different companies offer these accounts to their clients. A managed forex account is often chosen by individuals who wish to take advantage of the high liquidity and high profitability of the forex market without taking the time to “learn” forex trading.

The world of forex trading is highly complicated and success requires education and familiarity with terms, charts, signals and indicators. With a managed forex account, the investor can rely on someone who is already familiar with and successful in the forex world.

One type of managed forex account utilizes robots to trade the investors account. To the investor, no human hand means that there will be no emotional trades. These automated systems are designed by experienced traders and take into account all the indicators and statistics of any good forex trading system to signal the robot to trade. This is really forex made easy.

Another type of managed forex account attempts to take the difficulty out of self-trading by allowing the investor to employ a professional trader to make the trades. These accounts remain solely in the individual investor’s name, meaning that money can be withdrawn at any time, unlike conventional stock trading. In other words, a managed forex account is not merely combining one investor’s money with numerous other investors’ money to obtain results. These managed forex accounts are actively traded by individuals for individuals. Forex made easy for individuals.

Perhaps you are looking for forex, but you wish to trade your account yourself, for fun or as a hobby. Without a managed account, you must follow all the rules of successful forex trading. Forex education is absolutely necessary. There is no way to trade a forex account successfully without education because this is a complex financial undertaking. In fact, professional advice is highly recommended. Try a “demo” account, before you invest real money. Software, seminars, daily newsletters and much more is available for the new trader. If you are not looking for a managed forex account, you are not really looking for forex made easy. You are looking for the tools needed to maximize your chances of success.

Forex trading is a risky business. According to statistics, only 5-10% of new traders make it through their first six months with their initial investment intact. Even less make a profit. A managed forex account is a way to reduce the risk and increase the profit.

Working The FOREX Market-The Basics

What Does FOREX Stand For ?

FOREX stands for Foreign Currency Exchange Market. It is gaining more and more interest in the investing world, and for good reason. The FOREX Market is the largest market in the world and can be accessed anywhere in the world. The FOREX Market's volume is over 1.5 Trillion, providing almost infinite liquidity and flexibility.

How do you trade?

Instead of trading "stocks" where there is thousands to choose from, you are trading pairs of currency against each other. This gives you an advantage because you can focus on just 2 pairs of currencies instead of countless stocks. You can trade from your home computer, or any computer with an Internet connection from anywhere in the world.

When do you trade?

The FOREX Market is open 24 hours a day so you can trade whenever you want! You just need a computer, a Demo or Real Money account and a willingness to learn, research, and trade!

Why Should I Trade?

You should only trade if you are ready to change your mind about how much money you CAN make and reach your full potential. You should trade forex because its a great tool to leverage your time and replace your income.

Here are the benefits of Trading Forex:
You can work anytime you want 24 hours a day, 6 days a week. Its a continuous onine (electronic) that never closes. Work at home, on the beach, or anywhere in the world! You can trade foreign currencies on a high leveraged basis, sometimes up to 200 times your investment!

This is made possible by the higher levels of liquidity in the market. Price movements are highly predictable! Fx Market trends generally repeat themselves, creating trends that are easily predictable! With all these benefits and tons of others, you can easily make $200 to $3000 dollars a day trading! Too good to be true ? Let us prove you wrong for FREE!

There are many other AWESOME reasons to trade FOREX and you can learn them all by downloading our FREE E-Book!

What is Forex Trading?

FOREX, (FOReign EXchange market) or FX, is an international exchange market where stocks and shares are not traded, but currency. The return for the investor is not in the value of the currency per se, but rather the relative exchange value of one currency against another currency.

Therefore, Forex trading is always expressed in pairs such as Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).

By simultaneously buying and selling pairs of currencies, the investor, or speculator, hopes to profit from a favorable exchange rate change. Unlike the American stock exchanges, the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ), Forex trading is more predictable than stocks.

One strategy that the Forex investor uses is a technique that stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. In other words, an investor simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before. Another strategy for the Forex investor is to analyze the country of the currency's economy, political situation, and other possible rumors. The investor can also anticipate such things as political unrest or change that will also have an effect on the market.

Forex is the largest financial market in the world handling between 1.5 and 1.9 trillion US dollars a day. The combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors. Because of the the liquidity of the market, unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

What are the risks?

Because of the sheer scale of the Forex Market, it ensures greater price stability and greater leverage. With built-in protection in the form of automatic limits for buying and selling, safety margins, and other risk protection measures, the likelihood of ending up in the red even when the Forex market is volatile is infinitely reduced. Furthermore, because of its' size, it is near impossible for a single investor to significantly affect the price of a major currency.

However, all Forex traders should note that the market is one of the most liquid around and subject to strong currency trends. While leverage figures of 100:1 are often times quoted, without adequate risk protection in place the pendulum swing between profit and loss can be dramatic. Even veteran Forex traders can be caught out from time to time and take large hits. With this type of investor speculation, the golden rule must be: don't risk more than what you can afford to lose.

What's An Online Forex Broker?

Before you start trading in the FOREX markets you will need to set up an account with what is known as a Forex Broker. Once you start your search for the perfect broker, you may feel overwhelmed by the number of them who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you a much better idea of the services that are available and the fees charged by various of these brokers.

Strictly speaking, a forex broker is an individual or a company that buys and sells the orders placed by the trader according to his decisions. The way brokers earn money is by charging a commission or a fee for their services.

All serious brokers need to be associated with a large financial institution such as a bank in order to provide the amount of funds necessary for margin trading. In the United States a broker must be registered as a Futures Commission Merchant (FCM) and also with the Commodity Futures Trading Commission (CFTC). These credentials will ensure you have peace of mind, knowing that you have protection against any case of fraud and abusive trade practices.

What you’ll always want will be to find a broker who executes orders quickly and with minimum slippage. All reputable online brokers will offer automatic execution of orders and will let you know their policies regarding slippage. A good broker should be able to tell you how much slippage can be expected in both normal and volatile markets.

Margin accounts are the basis of Forex trading, so you better be sure you clearly understand the broker's margin terms before setting up your trading account. You also need to know the margin requirements and how margin is calculated. It may be the case that margin change according to the currency traded; or maybe the margin is the same every day of the week or maybe not; so you have to find out and have all this information pretty clear. Additionally some brokers may offer different margins depending on what kind of account you are trading, i.e. a mini or standard account.

One more thing that you should consider is that the trading station software available to you from your broker is very important for your success as an online forex trader. You should get a feel for the options that are available by trying out a demo account at a few of the available online brokers. Always keep in mind that above all, you are looking for reliability and the ability to perform well in fast-moving markets. A good trading software should offer automatic trading and may have special features such as trailing stops and trading from the chart, which is a great plus. Some features may only be available at an extra cost, so be sure you understand what your trading needs are and how much the broker charges to provide them. If you conclude those extras are necessary for your trading style and techniques it would be a good investment to have them in your arsenal.

Lastly, one more thing you should consider when choosing an online forex broker should be to find out whether trader’s funds are insured or not and what’s the extent of that insurance.