and normal trading.
Next, you will have to know what fees a broker will charge and, most importantly, what spread he works on? In addition, is this spread fixed or variable depending upon the form of account? Are all accounts subject to a single spread or are there, for example, greater spreads on mini Forex accounts?
You need to be a little here. In general, tight spreads mean more profit for the trader, but there can frequently be a trade-off between the tighter spread and the service that you get. Study the whole picture before deciding to use a particular broker.
Margin accounts are the basis of Forex trading and so you have to be happy that you understand a broker's margin account terms before you set-up an account. You must know what the requirements of margin trading are and how the margin is determined. Does the margin change, for example, with the currency traded and is it the same on every day of the week? Is there a difference in the margin for mini and standard accounts?
The software used for trading is also extremely important for the online Forex trader. Take the opportunity to get a feel for the software which is available by testing out demonstration accounts with various online brokers. You are looking for both reliability and the ability to perform well in fast-moving markets and any software should offer automatic trading and ideally include special features like trailing stops and trading from the chart. Some features may only be provided at additional cost, so make sure that you understand precisely what your trading needs are and how much the broker will charge you to meet them.
There are of course other things which you will want to know like the broker's policy regarding minimum account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You also want to find out whether or not clients' funds are insured and the extent of any insurance coverage.
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