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So I've got this new foreign exchange signals program, Forex Neutrino and I want to select a broker to trade with. The choice is crucial, and yet many of us don't get it right first time. Having the right broker can actually make a contribution to your profit or loss. So what must you look for in a forex broker?  

1. Investment Level

Look for a brokerage service that is aimed at clients at your investment level or a little higher. They vary widely from a $25 minimum right up to $10,000 or more. Do not go for the foreign exchange broker with the lowest minimum investment unless you are going to invest the minimum. Each company's spread and services will be different, and you would like a service that is a good match for you.

2. Regulation

Check their membership of regulatory bodies. This can give you some protection in the case of the corporation's failure. Keep in mind that the regulators will depend on the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission ( CFTC ) and the nation's Futures organisation ( NFA ). Foreign brokers won't be registered with them but will have other options. Check precisely what those are and what protection they give you.

3. Platform

Take a look at the software platform. You can generally access this in a demo account. Unless you intend to subscribe to another technical research service, you will want something that offers good charts. Some currency exchange brokers also offer financial reports alerts which can be useful. Don't forget to check the order process is clear and straightforward, to avoid mistakes.

4. Costs

Costs can be quite different from broker to broker. They may charge fees per transaction or they may operate only on spread, or a mixture of the two. Spread is the difference between the buy price and the sell price . Check the expenses for the currency pairs that you are most liable to trade, since this is what will impact you most.

5. Lots

The broker will have a minimum lot size which is related to the minimum investment level. Often, the standard lot is 100,000 currency units, a mini lot is 10,000 and a micro lot one thousand. It can be handy to be able to trade smaller lots for some systems so that you can take one or two lots per trade change the amount of each trade, close out half your profits, etc . Or, some brokers allow fractional lots so you could trade half a lot, for example.

6. Leverage

Leverage means that you do not need anywhere close to the actual lot size in your account. Most traders likely operate with a hundred times leverage, so $10 controls $1,000, $100 controls $10,000 etc . However , some brokers offer two hundred times or even four hundred times. This gives you the opportunity to earn more cash with less, but also carries more risk.

7. Support

There may be times when you need technical support fast. All brokers offer some sort of service, but it is worth testing speed and style of reply by asking a technical question after you have signed up to a demo account with your shortlisted currency exchange broker.

Tags: currency trading, foreign exchange, forex, forex neutrino, forex signals, forex software, forex trading