There are literally tens of thousands of forex traders spread across the world. Large numbers of them trade on a full-time basis, while many others trade part-time to make some extra money. All of these traders need one thing in order to trade: a forex trading account. What follows is a brief analysis of what you should expect from the best forex trading accounts.
Firstly you want to pay as little commission as possible. Don’t be fooled into believing there is no commission involved with a particular broker. There is always a difference between the buying and selling price of a particular currency and that is the commission you are in fact paying. You should therefore look for a company where the difference between these prices are at a minimum – some brokers offer a difference of as low as three pips per trade.
If you’re a newbie to trading, you should without any doubt look for a website that provides you with a demo trading account free of charge. By utilizing such a demo account, you can make all the mistakes novices make and thereby learn the rules of the game without risking a cent of real money.
Another factor that is important when a trading account is considered, is whether they offer access to good quality charting software without charging for it. To trade ‘blind’ without the benefits of charts to see where the market is heading, is trading suicide. You will in fact find brokers that not only give you access to charting software, but also provide live or slightly delayed prices free of charge.
If you are a day trader, live prices are important. For a longer term trader, such as a swing trader, end of day prices are quite sufficient.
The best forex trading accounts will also offer you free access to market information. To be effective as a trader, you need all the latest news from the marketplace at your fingertips. A section on their website where professionals analyze the market will also be very handy.