Doing research for your list of best forex brokers takes time yet is crucial. The Forex Broker that you choose can significantly affect your trading success

There are two types of forex brokers: market makers and ECN’s. But in practice things are not so clear cut-there are market makers out there who falsely market themselves as not having dealing desks, while there some brokers whom claim to be true ECN’s when they are not.

Your choice on finding the best forex brokers has to be YOUR choice. Everyone has their own needs and preferences. If you are a trader now you should carefully examine the practices and policy contracts of brokers, and be up-to-date with new information on brokers.
Below are some points you should think about when choosing your broker:
Know how when researching best forex brokers, Broker type:

Do you prefer to trade with a market maker or an ECN?

Security:
How safe are your funds with them?

Broker Location
Is the broker regulated by any regulatory authority in that country?
Nothe that even if the broker is regulated, no entity can completely gurantee the safety of client funds
Are the client funds insured against fraud, theft, or embezzlement?
Are the funds maintained separetly from the brokers operating funds? Even if the broker says that the fund are kept separate, it does not mean that they are segregated as defined according to certain agencies’ regulations.

Trial account
Does the broker provide a trial demo account?
Know how when researching best forex brokers, Trading platform
How many different currency pairs can you trade?
Does it come with any charting interface? Can you trade from the charts?
Are you comfortable with the order placing system?
Do they have one-click trading? This will become useful when scalping
Does it freeze during times of news releases or when the market is moving very fast?
If you want to implement your own automated trading system, does it offer and application programming interface(API)?
Will you need to trade while on the move? If so, check if it has a mobile or web-based version that you can use for trading.

Account and trade size
What is the minimum amount that is required for opening an account?
What is the minimum trade size? 10,000 or 100,000 currency units?
Can you make adjustments to the lot size traded?
What is the maximum size you can trade without having to call for a quote?
What is the maximum size they will guarantee your orders be filled at? Or, if it is an ECN, how easy is it to fill big orders?
Know how when researching best forex brokers, Order types and handling
What order types are supported? Do they support Stop, Limit-Stop, Stop-Limit, One-Triggers-Other (OTO) and One-Cancels-Other(OCO) orders?
How much slippage do you get when trading during news releases?
Find out the broker’s policy on stop-loss and limit orders. Depending on the policy, it is possible to end up with closing prices that are worse than expected.
Know how when researching best forex brokers, Commissions and spreads
ECNs generally charge a commission when you open and close your positions.
Are you willing to accept that?
Are spreads fixed or variable?
If spreads are variable, how wide do they get during important news releases?

Know how when researching best forex brokers, Margin
What is the margin percentage? The lower the margin required, the greater the amount of leverage
Is the margin requirement identical for mini and standard accounts?
Once you have narrowed the bes t forex brokers list down to a few candidates, be sure to read the terms and conditions of the respective contracts and understand what you are in for before you sign anything. Later on when you have graduated to an intermediate or advanced phase in trading forex, you may then choose to spread your money among a few brokers so as to reduce exposure to a single broker.

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