Forex trading must be seen as a serious business, not just a casual roll of the dice or a leisurely pursuit. Serious money demands serious work. Winners from the trading arena take a nononsense approach to trading – they take care of their P&L (profits and losses), enter only into high probability trades and keep meticulous record of all their trades.
Broker location
- Is the broker regulated by any regulatory authority in that country? Note that even if the broker is regulated, no entity can completely guarantee the safety of client funds.
- Are the client funds insured against fraud, theft, or embezzlement?
- Are the funds maintained separately from the broker’s operating funds? Even if the broker says that the funds are kept separate, it does not mean that they are segregated as defined according to certain agencies’ regulations.
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 be useful when scalping.
- Is order execution instant and efficient? This will be especially crucial if you are 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 an Application Programming Interface (API)?
- Will you need to trade while on the move? If so, check if it has a mobile or webbased version that you can use for trading.
source: 7 winning strategies for trading forex
