The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
Carl's 2 Cents:
Another good article about how
to choose a Forex broker. Spread, trading
costs, trading platform reliability and
performance, broker reputation, user friendly
software, and etc., are some of the important
factors to consider.
What to look for in an online Forex Brokerage Firm:
1. Low Spreads In Forex Trading the 'spread' is the difference
between the buy and sell price of any given currency pair. The
lower the spread saves the trader money. Most firms offer 4-5
pip spreads in the Major Currency pairs. The best firms offer
clients 3-5 pips.
2. Low minimum account openings For those that are new to
trading, and for those that don't have thousands of dollars in
risk capital to trade, being able to open a mini trading account
with only $200 is a great feature for new traders.
3. Instant automatic execution of your orders This is very
important when choosing a Forex firm. You want instant execution
of your orders and the price you see and 'click' is the price
that you should get. Don't settle with a firm that re-quotes you
when you click on a price or a firm that allows for price
'slippage'. This is very important when trading for small
profits.
4. Free charting and technical analysis You need a firm that
gives you access to the best charting and technical analysis
available to active traders. The firm that I recommend gives
clients FREE professional charting services and even allows
traders to trade directly on the charts!
5. High Leverage You want high leverage--the ability to trade a
large amount with a small margin deposit. Some of the best firms
offer .25% or 400:1 leverage.
6. Hedging Capability You want the flexibility of opening
positions on the same currency pair in opposite directions
without them eliminating each other and without margin increase!
7. A realistic demo account trading capital balance that
reflects the actual dollar amount that the trader will start
live trading with. It does the demo trader no good to start out
demo trading with a $50,000 account, when in real life he will
only start out with $1,000. A Forex brokerage needs to offer the
trader a demo account starting balance other than the standard
$50,000.
After a lot of research and personal experience, the firm that I
recommend with the above-mentioned benefits is Capital Markets
Services LLC (CMS Forex LLC).
Open a free unlimited demo account and start practicing!
The goal of the Day Trade Forex System is to instruct and teach
potential traders how to day trade the currency markets and what
to look for in an online Forex brokerage.
The objective of day trading is to trade the intra day market
moves to try to gain small to medium sized profits in any given
trading day. This is how this guide will help. Most readers will
not have the time or resources to 'position trade' like the
major institutions and banks do. They tend to look at the big
picture holding onto trades for weeks or months.
The Day Trade Forex System is specifically designed for use with
the 1, 5 or 10-15 minute charts, with the goal of taking 5-30
pip profits per trade -- closing bad trades out using tight
stops, or hedging any losing trades. The ability to trade right
off the charts makes the CMS trading platform our favorite.
We feel that the CMS trading platform offers traders the most
features that fit the criteria listed above.
About the author:
Cynthia Macy is the co-author of 3 Forex training e-books.
For more comprehensive trading information, visit her other
websites at:
http://www.professionalForextradingonline.info
http://www.successtrading2000.com/Forex
http://www.shortterminvestingsite.com
http://www.daytrade-Forex.com
Written by: Cynthia Macy
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