It should be understood that there are many important concepts to grasp before venturing into trading with real money. If you do not do this but go ahead and trade, you will regret that decision. You, therefore, need to look at the main important qualities a forex broker possesses. This will be the way you select the best forex brokers. This is how you will know how to choose which one to open an account with.
You need to think of things like forex margin, forex leverage, ECN forex and forex spread. You can for instance look at the margin offered by the forex brokers. If you have a 2% leverage that means you can leverage your money 50 times. This figure is a the moment the highest you can go.
This declared maximum has not gone down well with forex brokers coalitions, with many of them plotting to trade in foreign markets, so a to overcome that limitation. You need to read through the review sites to find more information regarding this matter so as to find the best places to trade. You have to be very careful where the safety of your money is concerned. Ensure there are adequate regulations that safeguard your money in case the brokers go bankrupt.
You have to establish whether the brokers are market makers or use ECN. There is a huge impact from this information. You cannot rule out a forex broker who has a dealing desk turning against your positions. ECN brokers are attractive when you think of this. But keep in mind that ECN brokers may turn out to be too costly when they charge a commission per each trade. You will have to strike a balance between these too; to go with ECN or market maker brokers.
You need to look at what kind of forex spread there is. If they have a low spread, you are in luck, since they do not charge a huge commission. ECN forex brokers usually give very low spreads, because their platforms can tap into a huge pool of liquidity providers. You need to find out also if the spreads are fixed or variable. The problem with variable spread is that there is always a fluctuations when a major financial news item is broadcast. Spillage is another thing to think about, where your order is filled at a price that is not what you were expecting. You need to gauge the levels of spillage that may occur.
These make up the search criteria for a forex broker. They also need to have demo and micro accounts for your practice. This is critical for beginners. After such training only should they access normal accounts.