When you get to where you are serious about Forex trading you are going to want to find yourself a Forex broker. There are a lot of them to choose from and the market is far larger than the standard stock markets so it might be quite a daunting task to try and figure out what broker to go with. So, choosing your broker is going to depend upon a variety of different factors.
Platform demos are an important factor and many of the brokers out there will provide the trader with their own software application in order for you to make your trade transactions. These are active trading platforms and they will allow you to buy and sell quickly for those short term trading strategies that you will be working with as a trader. The different features that come with this software is going to vary somewhat between the different brokers. However, you do have the opportunity to try them out for free before you decide upon which broker that you would like to go with by simply signing up for a demo account.
This demo account will give you temporary access to the full range of features that come with the trading platform and you will work in a virtual world of trading with fake money. This is a great way to not only test out different programs but to also practice your skills of trading totally risk free.
Be aware of the leverage that is available when looking for a broker. A trader can earn or lose lots of money rapidly from even the smallest of changes with the exchange rates. This is because Forex is leveraged highly. It can be very dangerous because a broker might be able to allow you to buy a lot more currency than you actually have on your account balance. For instance if a broker offers a leverage of 50:1 this means that if you have a $1,000 account you can buy $50,000 worth of the currency. However, this could mean you could go bankrupt just by making one trading mistake. Remember, you can request lower leverage rates if you want to stick with more of a conservative way of trading.
You can limit your risks by finding a broker that will let you sign up for an account that will limit your lot size. However, this too can make or break you as a successful trader. Usually the standard Forex brokerage account will only let you buy and sell the currency in multiples of say 100,000 units at one time which are called lots. This is the minimum and this can put you at a big risk. But you can also ask for micro lots that will set the lots to as low as 1,000 and if you are first starting out, this is a good thing for you to ask for from the broker.