The beginners guide
Many brokers out there offer CFD trading for forex, commodities, and indices. It is important to research the forex broker before making an investment decision. Finding a broker that offers strong customer support, a robust platform like the MT4 trading platform, and low costs and consistent spreads can be incredibly important.
Beginners often find it hard to decide whether to go with a ‘direct’ or ‘indirect’ forex broker. There is no simple answer and it depends on the type of trader you are and what type of forex trading experience you have already got. If a beginner, then I would suggest an indirect forex broker for several reasons, mainly because direct brokers generally have higher requirements in terms of deposit amounts, trading platforms, minimum deposit amounts, etc.
If you are a more experienced trader then direct forex brokers may be a lot more appealing and will work better for your needs. If you are interested in lowering your overall deposit costs and minimum deposit amounts, then you should consider using an indirect forex broker.
Who is a good broker?
Good forex brokers of the twenty-first century offer traders lucrative bonuses, tight spreads, and a level of safety that is unparalleled in the industry. Forex is a complex, fast-moving market that requires forex traders to be experienced and well-versed in the many technical trading strategies and other aspects of the market. Good forex brokers of today offer a variety of services to suit the varying needs of traders.
A good forex broker should be licensed, regulated, and legal to operate in the country in which they are offering their services. This is particularly important if a trader is going to make use of leverage on an account. A good forex broker should have insurance and capital reserves that are sufficient to cover all possible losses that might occur in the market through trading or otherwise. And finally, a good forex broker should offer tight spreads and fast execution times for clients.
Since trading with leverage can be very risky, traders may wish to open accounts with regulated brokers who provide fair-featured platforms for trading.