What do you need comparing:
- Trading platform.
Forex brokers offer many different trading platforms: Java trading platform, html forex trading platform, MetaTrader 4, Tradestation, SaxoTrader, NinjaTrader, Advanz Auto4X, e-Signal, ProSignal, NeoTicker and etc. In our opinion the best free trading platform –Metatrader 4.
- Net Capital and Quality Institution
Forex brokers should be registered with the Futures Commission Merchant (FCM) should be a member, National Futures Association (NFA) and regulated by the Commodity Futures Trading Commission (CFTC). This information should be appear on the forex broker website.
You can find information about your broker net capital on www.cftc.gov
For example. Net capital info:
Forex Firms with Net Capital > 5, 000, 000
FX Solutions ($20,000,000)
Gain Capital ($20,000,000)
Forex Firms with Net Capital < 5, 000, 000
One World Capital ($1,105,000)
Direct Forex LLC ($1,523,000)
Forex Club ($3,304,000)
GFS Futures & Forex ($3,074,000)
Nations Investments ($1,699,000)
Royal Forex Trading ($1,102,000)
SNC Investments ($1,565,000)
MB Futures ($3,080,000)
Money Garden ($3,399,844)
United Global Markets (Bankrupt)
Spreads (in pips) is the difference between the price at which a currency can be purchased (Ask, Buy price ) and the price at which it can be sold (Bid, Sell price) at any time. Lower spreads save you money!
4. Account Types and Leverage Options
Brokers as a rule offer a lot of types of accounts: mini account (minimum deposit approximately 250 USD, Leverage approximately 250:1 ), standard account (minimum deposit approximately 2500 USD, Leverage approximately 100:1) and etc.
The price deviations on Forex Market (the sources of profit) are merely fractions of a cent. Leverage, showed as a ratio between total accessible capital to actual capital ( is the amount a broker will credit you for forex trading.)
Leverage 1:250 broker would credit you $250 for every $1 of you deposit.
If you deposit = 1000 USD available for trading: 250000 USD
Leverage 1:100 broker would credit you $100 for every $1 of you deposit.
If you deposit = 1000 USD available for trading: 100000 USD
Lower leverage means lower risk!
Regards, Boris F.