Choosing a forex trading account can be a daunting task for anyone new to currency trading. There are so many forex platforms to choose from, where do you start?
Well when comparing forex trading accounts, there are a number of key features you need to look for, which I’ll list for you below, before telling you about the two forex platforms I have experience of, and why I prefer one over the other.
So here are the key features you need to look for in a forex trading account:
Firstly you need to look for an established platform provider that has been trading for a number of years. Your chosen forex broker should be able to provide lots of genuine testimonials from satisfied customers.
A good forex broker will offer live customer support from a team of “real” people, either by phone, chat or via sms services.
Also as part of their customer service, your broker should be able to offer you personal training to ensure you get the most from your new forex trading account from day one. After all, you want to be up and trading as quickly as possible, even if you only use a demo account.
A demo account is another important feature you need to look for, particularly if you are a currency trading beginner. A forex demo account allows you to simulate trading without risking your money. It’s a great way for a beginner to learn forex without the risk!
A good platform will allow you to do everything online without the need to download any software on to your own pc. A good forex trading account will also off you a comprehensive range of analysis tools including charts, outlooks and forex trading news.
Your broker should offer a range of forex trading accounts tailored to your wallet. For example, for beginners most good brokers will offer a mini trading account to get you started. Most mini accounts only require an initial trading deposit of between $200 - $500 to open the account, with minimum deals starting at $2000 - $2500.
When you first start trading, you don’t want to be risking too much money until you understand trading patterns and can make correct predictions regularly.
Account leverage offered on your new forex trading account is also very important. Leverage means trading larger values of currency than you can actually afford to buy. Most brokers offer 100-1 or 200-1 leverage, whilst there are some forex brokers that offer 400-1 leverage with their trading accounts!
Let me explain a little more. If you open a mini trading account with a $1,000 deposit, and the terms of the account state that the maximum leverage you can use is 100-1, it means that you can actually buy $100,000 worth of currency with your $1,000.
You can then benefit from the gain you make on the movement of that amount of currency, meaning you can make more! But hold on! It also means you can lose a lot more, although your losses are actually restricted to the size of your deposit, so you can’t lose more than the $1,000, but with the size of the trade, losing that amount could happen quickly! Leverage increases the size of the gains and losses on your trades.
You should also look for the following features when choosing your forex trading account:
- easy deposit facilities such as credit card or Paypal
- 27/7 access to your trading account
- real time exchange rates
- no hidden costs or maintenance margins
- guaranteed rates and stop loss limits
- tailor-made accounts and spreads
- guaranteed rates and stop loss limits
- security and safety of the site and your information
- a company that has a regulatory license for your region
You new trading account should have all of these features with it, and if you’re not sure, ask the broker for information.
So now you the key features of a forex trading account, I’ll tell you which brokers I have experience of.
I have two trading accounts. I started with Etoro. They provide an excellent service and are perfect for beginners. You can literally start using their demo account in minutes, and their minimum deposit is only $50. Like I say, Etoro offer the perfect platform for forex trading beginners.
Take a look at Etoro here …
In the last couple of years I’ve done most of my trading with Easy Forex.
Easy Forex offer all of the features I’ve talked about above, in particular their customer service and training materials are excellent. I’ve had no problems with my account and recommend their forex trading accounts highly!
Like Etoro, they offer a great service for beginners, and their 24/7 support is brilliant.
You can take a look at Easy Forex by clicking on the banner below …
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