How to choose a forex broker?

With almost a $4 trillion average daily turnover in the global foreign exchange market and many technical and fundamental techniques to help you predict the market, forex is a great way to make money in the comfort of your own home.

But with hundreds of forex brokers out there how to you know which one to choose? Here are some key points you should consider:

MT4 and Streamster Platforms

Platforms
Trading forex online is performed through a platform. One of the most internationally recognized and widely used platforms is MetaTrader 4 (known as MT4). MT4 allows many currency pairs, indexes, commodities and other futures to be traded, and assist traders by performing technical analysis at the click of a button.

Trade on mobile, tablet and PC

However if you are new to trading then a simplified platform may be more useful. AGEA provides an excellent platform, Streamster. Like MT4, Streamster beside forex offers many CFDs (indexes, commodities) but has the advantage of being more user friendly, requires no deposit (some company require thousands of dollars in deposits to use MT4) and you get a $5 reward to trade with immediately.

Furthermore, you can trade using your android phone or tablet PC!

No deposit and $5 free reward

Deposits (Investment needed)
As mentioned above, many companies require deposits when opening a live trading account. The reason for this is to protect the Company if you start losing heavily. Most MT4 accounts require a deposit of around $500.

At AGEA, however, you can open an MT4 account from as little as $10! There are three different levels of accounts; even the top account – Standard – requires only a $100 deposit. And remember Streamster requires no deposit!

Charges
Most likely you are trading not for fun but to make money. The higher you’re trading costs are, the harder it will be for you to make profit, so charges are a key factor when choosing a broker.

Forex brokers generally only charge commission on Straight-Through-Processing (STP) accounts. This is where your trade is passed onto another broker and the introducing broker just receives a commission.

AGEA has institution-level low spreads

However on other accounts (such as AGEA’s Streamster, MT4 Cent and MT4 Standard) no commissions are charged. One of the key areas, therefore, that differentiates brokers is the spreads. Spreads are the different between the bid and ask price of an instrument. Let say you buy an instrument and sell at exactly the same ask price, you would still make a small loss as the broker will make the bid price slightly lower than the ask price.

AGEA has institution-level low spreads on MT4 because we do not add any commission or mark-ups to the prime brokerage rates, and we choose the brokerage with the lowest spreads.

Virtual Desk
It is important that you practice trading before you go live, especially if you are new to trading. Most brokers will provide you with a virtual desk with virtual money for you to trade with, so you get to trade without the risk of losing money. But, of course, you also can’t make money just by trading on the virtual desk – except at AGEA!

Win $100 trading on AGEA’s Virtual Desk – No investment required!

AGEA runs a competition which rewards the trader who makes the highest virtual profit on the virtual Streamster desk. The reward is $100 and can be used to trade on your live desk or withdrawn.

All traders receive $5 when they open an account with AGEA to trade on the live desk, so again you could make money without investing any!

24 hour, multilingual support

Support
Whether you are technology pro or not, you may sometimes need some help. AGEA has a dedicated, high quality, 24 hour, multilingual online support channels. You can chat directly with one of their assistants at any time and they will be sure to help you in any way they can.

Conclusion
If you are serious about making money then you need to reduce your costs and make sure you have the right tools to learn and to trade.

AGEA offers a multitude of platform accounts, learning tools, and full time support all at institutionally low prices!

New to forex? Learn more at AGEA!

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Long and Short positions

A Long position is simply one in which a trader buys a market instrument at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market.

In this scenario, the trader benefits from a rising market.

For example, if a trader thinks that EUR/USD, that currently trades at 1.3082$, will go up, he will open a Long position. If the price does go up, the trader will be able to close his position at a higher price, pocketing the difference between the opening and the closing price of the trade.

Traders that believes that the prices of a specific market instrument are about to rise are called “bullish investors”. A market characterized by a rising trend is often called a “bull market”.

A short position is one in which the trader sells a market instrument in anticipation that it will depreciate.

In this scenario, the trader benefits from a declining market.

For example, if a trader thinks that EUR/USD, that currently trades at 1.3082$, will go down, he will open a Short position. If the price does go down, the trader will be able to close his position at a lower price, pocketing the difference between the opening and the closing price of the trade.

Traders that believes that the prices of a specific market instrument are about to fall are called “bearish investors”. A market characterized by sharp declines is often called a “bear market”.

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Introduction to Forex

Get familiar with basics of Forex market and trading instruments

Currency Pairs
Currencies are traded in pairs. A currency pair is the quotation of the relative value of a currency unit against the unit of another currency. The first currency of a currency pair is called the base currency, and the second currency is called the quote, or counter, currency.

Currency pairs are written by concatenating the ISO currency codes (ISO 4217) of the base currency and the quote currency, separating them with a slash character.

Example: GBP/USD

  • GBP -> base currency
  • USD -> quote/counter currency

According to the average daily trading volume and to the liquidity we distinguish between: Majors, Minors and Exotic Pairs. Continue reading

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