It should be understood that there are many important concepts to grasp before venturing into trading with real money. If you do not do this but go ahead and trade, you will regret that decision. You, therefore, need to look at the main important qualities a forex broker possesses. This will be the way you select the best forex brokers. That will make it easier for you to choose one of them to open an account with.
You have to think of criteria like forex margin, forex leverage, ECN forex and forex spread. You should begin with look at the margin offered by the forex broker. A 2% margin affords you a leverage of 50 times on your money. This seems to be the current maximum one can leverage.
This declared maximum has not gone down well with forex brokers coalitions, with many of them plotting to trade in foreign markets, so a to overcome that limitation. When it comes to this, you need to read some reviews, so as to get a better picture of where to trade. You need also to be especially vigilant when it comes to the safety of your money. You need to see what rules have been put in place to ensure you do not lose any of our money if a broker declares bankruptcy.
Find tout id the brokers are market makers or use ECN. There is a huge impact from this information. You cannot rule out a forex broker who has a dealing desk turning against your positions. ECN brokers are the ones you may have to choose. But keep in mind that ECN brokers may turn out to be too costly when they charge a commission per each trade. You are now forced to balance your options, between the market makers and ECN.
You need to look at what kind of forex spread there is. If they have a low spread, you are in luck, since they do not charge a huge commission. ECN forex brokers can afford to give very low spread due to the fact that their platforms can tap into a huge pool of liquidity providers. You also have to determine whether the spreads are fixed or variable. Those who have variable spreads normally experience wider fluctuations whenever there are major economic news releases. Spillage can occur, where you order is filled at a price that is not what you were expecting. You need to have an idea of the kind of spillage that might occur.
You need to look at such things when you are selecting a forex broker. You also need to find out if they offer demo and micro accounts to practice real trading on. This is critical for beginners. After then can they use standard accounts.