Generally, qualified Forex brokers provide a reliable trading platform, round-the-clock customer support during Forex trading hours, access to Forex news and commentary, technical analysis tools and charts etc. Brokers, who offer less than the mentioned Forex services should not be considered in the selection of a Forex broker, as currently, traders have a good chance to choose retails brokers online.
Brokers, who avoid answering your questions or calls, are the best avoided ones. Besides, if the broker is known for giving requotes, then he/she should also be avoided, as this problem can really cost traders' funds over the long term.
Technical and fundamental analyses are the two main forms strategies in the Forex market, which is exactly the same as in the equity markets. Individual Forex traders usually prefer trading technical analysis.
Below is a short summary of both types of analysis and how they directly apply to Forex trading:
Sometimes fundamental analysis in the Forex market considers being an extremely hard one, which is usually used only as a means to forecast long-term trends. Though, it is essential to note that some traders trade short-term only on news releases. There are various fundamental indicators of the currency values released at different times. Here are several of them:
* Non-farm Payrolls
* Purchasing Managers Index (PMI)
* Consumer Price Index (CPI)
* Retail Sales
* Durable Goods
Unlike fundamental analysts, technical analysts of the Forex trading market analyze price trends. The only essential difference between trading technical analysis in Forex and trading technical analysis in equities is the time frame that is involved in that Forex markets are open 24 hours a day.
Several most common forms of technical analysis used in FOREX:
* The Elliott Waves
* Fibonacci studies
* Parabolic SAR
* Pivot points
A lot of technical analysts often combine technical studies to make more exact forecasts. The best method for them is combining the Fibonacci studies with Elliot Waves. Others prefer to create trading systems in an effort to frequently locate same buying and selling conditions.
There may be brokers, who can make you wait quite long to withdraw your funds, so make sure everything is clear before giving them money. Also beware of Forex brokers with mysterious trading rules, such as giving you a minimum time to hold a position.
Remember that Forex brokers usually change a commission on deals by taking part of the bid offer spread, so the tighter their spreads, the more money the trader saves, which can make a big difference for active traders.