· Low spreads - In Forex Trading the ‘spread’ is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 3-5 pips.
· Low minimum account opening - Those who are new to trading, and for those that don’t have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.
· Instant automatic execution of your orders - This is very important when choosing a Forex firm.
· You want instant execution of your orders and the price you see and ‘click’ is the price that you should get. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’. This is very important when trading for small profits.
· Free charting and technical analysis - You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders to trade directly on the charts!
· High leverage - You want high leverage - the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.
· Hedging capability - You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!