The foreign exchange market is a competitive one; you are not battling against others, but against price action. There are a lot of things that need to be taken into consideration when trading, but before you start, you need to compare Forex Brokers to ensure that you are one step ahead.

The following 7 factors should enable all traders to choose effectively.

Their Location

When choosing, make sure they provide you with plenty of information, rather than going with the one that offers the best spread. If you choose based on the best deal and nothing else, you are likely to get scammed.

If a company is based offshore, then it will be extremely difficult to get hold of your cash!

Regulators

To avoid being scammed, when you compare Forex Brokers, do your due diligence. They all have to be regulated by the relevant bodies in their country. For instance, in the UK this would be the FSA, where as in the United States it would be the FCM. Remember, this is your capital at stake, so make sure you pick wisely.

Different account types

It will soon become apparent that there are hundreds of different accounts available. Account deposits start from $10 for a micro account, mini accounts start from $300 and standard accounts start from $2,000. Corporate accounts are available, but they usually require a much higher deposit amount.

Amount of Leverage

Different Foreign Exchange companies will offer their clients different leverage ratios. A lot of companies start with 100:1, although many companies will offer anything to 400:1. That means you could be leveraging $400 for every $1 you have in your account.

Spread size

When you compare Forex Brokers, take into account the size of the spread. If a spread size is 10-15% larger with one company, then obviously your profit will be reduced a great deal.

Trading Platform

There are hundreds of different trading platforms, or pieces of trading software. Try a range out and see what works for you and hopefully you will learn what features you really need.

Broker Support

The foreign exchange market does not operate on weekends, but 24 hours a day, 5 days a week.

The one thing you will need to ensure when you compare Forex Brokers is that they have a good support team. Check that you have multiple ways of contacting them such as email, phone and fax as remember, if something goes wrong – you will want to know where your money is.

Learn the important of how to Compare Forex Brokers! http://www.forex-market-trading.info