Many people, when they enter the field of currency trading or so-called (Forex) resort to brokers.
This is in order for them to receive assistance from the financial intermediary, which will help them achieve a large amount of profits.
But before you choose your broker it is necessary to take a number of things into consideration.
The eight points that a new trader must rely on will be discussed before choosing a broker.
But before clarifying these points, the concept of the word Forex will be clarified at the beginning.
Forex and what it is
Forex is the exchange of something with another and its aim is to make a profit from the buying and selling teams and this is what is applied in the currency market.
Where we find in this market a foreign currency is sold in exchange for buying another currency, which is called (the currency pair).
The goal is to take profit from the difference between both the buying and selling process.
It is also one of the largest markets in terms of liquidity globally, because its daily turnover is approximately $ 5 trillion.
Currency pairs are divided into three types which are major currency pairs, secondary currencies, and unfamiliar currencies.
Major currency pairs are a pair that includes both the major currencies of the market, such as the US dollar, the euro.
A secondary currency pair is a currency pair that does not include both major currency sides.
Finally, the unfamiliar currency pairs are the pair that includes one end of a modern economic currency and the other is a major currency.
Forex and broker selection method
There are eight points when you depend on them to choose your Forex broker. You will be able to make profits during your trading.
Accordingly, some important points will be discussed from them.
A good broker has a good trading platform and it is necessary for the platform to explain to you several things like stop orders.
Besides, the good platform shows you the real prices on the market.
Based on the above, it enables you to use these orders during your trading that are the reason for your profits.
We find that the currency exchange market or its so-called (Forex) is available throughout the day (within 24 hours), therefore it is necessary for your broker to provide you with full support at any time.
Where we find that during your trading you depend on your phone, so it is possible that anything wrong happens, and based on his family it is important that your broker is in contact with you to provide you with help.
There are several types of trading accounts, so there is something that enables you to trade with a small amount and others that require you a large amount.
There are also demo accounts through which you experiment with trading and at the same time you will not risk your capital.
So it is important to know if your broker offers simple accounts to use when starting your trade.
The size of the spread
We find that the spread differs depending on the medium you are dealing with, but it will be clarified at the beginning about the concept of spread.
Spread is the difference between the purchase price and the selling price of a specific currency.
The spread differs due to the fact that these currencies are not traded through a central exchange market.
Accordingly, you will find a lot of traders who change their spread every day. On the other hand, you find other brokers whose spread is fixed and that is better.