It should be understood that there are many important concepts to grasp before venturing into trading with real money. Those who were not ready but decided to start anyway reported huge losses in a short while. You will need to know what the main important qualities to look for in a forex broker. This will be the way you select the best forex brokers. That will make it easier for you to choose one of them to open an account with.
There things to look into include forex margin, forex leverage, ECN forex and forex spread. You should begin with look at the margin offered by the forex broker. A margin of 2% means that you can leverage your money by 50 times. It appears to be the current maximum one can access.
This imposed maximum has not been received well by forex brokers coalitions, and most have decided to trade in foreign markets, in order to beat the barrier. When it comes to this, you need to read some reviews, so as to get a better picture of where to trade. You need also to be especially vigilant when it comes to the safety of your money. You need to see what rules have been put in place to ensure you do not lose any of our money if a broker declares bankruptcy.
You need to know then if the brokers are market makers or use ECN. There is a huge impact from this information. You cannot rule out a forex broker who has a dealing desk turning against your positions. ECN brokers are therefore preferred. You also have to consider that ECN brokers may turn out to be more expensive, when they decide to charge a commission per each trade. You will have to strike a balance between these too; to go with ECN or market maker brokers.
You need to look at what kind of forex spread there is. If they have a low spread, you are in luck, since they do not charge a huge commission. ECN forex brokers usually give very low spreads, because their platforms can tap into a huge pool of liquidity providers. You also have to determine whether the spreads are fixed or variable. Variable spread situations usually mean there are wider fluctuations any time there is a major financial news announcements. Spillage is another thing to think about, where your order is filled at a price that is not what you were expecting. You need to see what amount of spillage might occur.
These are things you need to consider when analyzing potential forex brokers. You also need to access a demo and micro account for you to practice on. Beginners need to go through this. After then can they use standard accounts.