Tips for choosing the right forex broker:
Using Leverage – A common feature with a forex broker, leverage allows the trader to use a credit system to maximize profits. The forex broker provides a temporary "loan", which allows the trader to purchase much larger trades, which (assuming a positive result), yields equally large profits.
Therefore, a $ 500,000 trade requires an investment of only $ 1,000 when the leverage of the trade is 1: 500. The trader must understand and be aware of the risks posed by leverage, as a losing trade also multiplies the loss for the same amount as a winning trade. If you want to know more about forex trading platforms in Kenya then you may search online.
Spread Pricing – Your chosen forex broker will make their money on what is known as a forex spread. Quite simply, the spread is the difference between the buy price and the selling price of the currency pair in question. An experienced investor will look for a small margin, as the logical view is that a small margin offers greater profit potential.
The spread is available in two types: fixed and varied. A fixed spread remains constant throughout the day, while a varied spread changes, according to current market conditions. To make a profit from multiple spreads, the market must move substantially in favor of the market trader.
Technical Support – Clearly, the forex broker you choose must be able to offer full and comprehensive technical support for the trading system they offer; if there is a failure or when it is necessary to ask a question regarding a specific operation or transaction. Preferably, the support should also be in your language, so look for a forex broker who can offer a forex help support service in multiple languages, ideally 24/7.
All of the points mentioned here are important and should be kept in mind when looking for a forex broker, but always keep an eye out for the smallest incentives that may come up as you do your search. Still, enough information is provided so that a basic judgment can be made. At the end of the day, there is nothing wrong with signing up with several different forex brokers and taking advantage of the various offers available.