Page 168 - Ultimate Guide to Currency Trading

Picking a Currency Broker

Picking an FX broker can be as easy as doing a Google search. It can also be as hard as buying a used
car. Almost every FX broker offers the same thing: lower account minimums and access to high margin.

There are differences though, and they become quite apparent when they are compared side by side.
Almost all FX brokerage firms will allow you to deposit money in many ways, from sending a

check, to debit and credit cards, to a bank wire. Get-ting money into the account is not usually a
problem. Getting your money out can be, though. If you have deposited money in your account a

certain way, then there is a good chance that your FX brokerage firm will only refund you the money
in that same way. This is a function of the anti-money laundering laws that came about several years

ago.
Also, some brokerages strictly follow U.S. law (even though they might be based in Europe)

and others follow the trading laws of the country in which they are based. For example, Windsor
Brokers is a Forex firm that is based offshore in Cyprus. It allows margin trading on gold and silver as

well as currency pairs. It is regulated by European Union authorities, which allow the use of up to
500:1 margin. On the other hand, OANDA, which operates under U.S. regulations, only allows up to

50:1 margin, ,and does not offer leverage on spot gold or silver trading (OANDA offers 1:1 margin on
metals).

Some currency brokers allow futures and options trading as well as access to
international exchanges. You might want to consider looking into one of these if you
are thinking of bundling all of your brokerage accounts into one account and trading

Essential them on one platform.

Most of the brokerages will offer very competitive pricing schedules. The main difference is

the number of currency pairs that are offered to the account holder to trade. All firms will offer the
basics, but only some offer all of the euro proxies such as the SEK and NOK, as well as the exotics such

as the CZK, HUF, or PLN. This is keys if you want to trade these currencies with some of the pairs that
have been discussed in this book.

Additionally, most of the currency brokers will say they offer an easy-to-use trading platform.
Usually, the opposite is true. You will have to try out several FX brokers to determine what trading

platform or system is best for you. Some are very easy and intuitive to use; others are more complex.

The Forex brokers that offer more complex trading platforms are usually intending for their customers