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What to Look for in a Forex Trading Account: 3 Key Selling Points

Posted February 27, 2013 by Ralph McCabe to Investing 2 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

While it cannot be denied that the foreign exchange remains the most well populated and profitable financial market in the world, it is also one the most difficult to conquer. Thanks to the advent of technological innovation, however, it has become accessible to a wider range of investors and improved their individual chances of success.

The most significant innovation has been the development of online trading platforms, which enable investors to gain instant access to their individual accounts and portfolios. The type of account that you operate and the way in which you use it is also of pivotal importance, as it must suit your unique forex trading strategy and wider investment philosophy.

Appraising Potential Forex Trading Accounts: The Key Points to Address

So with this in mind, what key factors should you consider before selecting a forex trading account? Keep the following points in mind: -

  • The Range of Available Technical Indicators and Analytical Tools: When you open an account with a reputable brokerage firm, you are also accessing a wider range of trading platforms, technical indicators and advanced analytical tools. This is a key consideration, as these tools offer significant benefits to the quality of your trading activity and the level of profit that you are able to accrue. Before you commit to opening an account, it is wise to appraise the broker in question and review the range of their technological tools. With a number of providers operating in the financial market, it is important to ensure that your ultimate choice delivers the best possible competitive advantage.
  • Additional News Resources and Streaming Services: Given the 24 hour nature of the forex market, online brokers have strived to provide real time tools that help investors to maximise the efficiency of their transactions. The very best providers therefore offer a dedicated series of news resources and streaming services, which filter information and create a conduit of relevant data. This information is often time sensitive and helps you to formulate an understanding of breaking economic trends, which in turn can give a critical edge in a constantly changing market. Without these resources, you may struggle to trade currency effectively and profitably.
  • The Minimum Deposit and Account Stipulations: All forex trading accounts have a stringent set of boundaries and regulations, and it is important to fully comprehend these before you make a definitive decision.  Depending on the account in question and your individual choice of provider,  for example, you may be required to invest anything between £300 and £6000 as a minimum deposit. There are additional stipulations including the range of financial products that you can access and the capacity to operate sub-accounts in different base currencies. It is important to consider your own trading goals in line with the account on offer, and identify the option that best suits your requirement.

The Final Say

With a rising number of online brokerage firms and trading accounts on the market, it is crucial that you appraise your options and make an informed decision. Without this commitment, you run the risk of limiting your trading potential and the impact that you can have within the forex market.

About Ralph McCabe: This article was written by Ralph on behalf of Saxo Markets. He writes on a range of topics concerning financial investment and forex trading strategies.

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