The cost of entry for online Forex trading is relatively low. Of the six main required ingredients, most people already have three, those being a computer or internet enabled device, an internet connection and money with which to engage in trading. Trading software and trading education are typically free, and are provided by the final required element, a Forex broker.
Choosing a Forex broker is an important step in setting up an online Forex trading business and the following information regarding the broker AlfaTrade is intended as a guide for new traders.
It is always reassuring to have options regarding account types and the presence of those options typically indicates a broker that is suitable for different levels of traders and traders whose needs change as their trading careers progress. This broker offers six different account types. Those are Standard, Premium and VIP. Each of those three is broken down further with the option of no commission and commission varieties. Accounts with no commission have lower minimum funding requirements, in this case $500 for a Standard no commission account. That figure jumps to $5,000 for the Premium account and $50,000 for the VIP level. As the size of the account increases, the “spread” or fee the broker charges decreases. Spreads for the no commission accounts range from 2.5 to 1.5 “pips.” On the accounts where commissions are charged, the spread ranges from 0.2 to 0.1. The commissions on the accounts where commission are assessed range from $8 per “standard lot” to $2 on the VIP account. For all six account types, the minimum trade size is 1000 units for all six account types and the maximum “leverage” level is 1:200. New traders should plan to spend some time with an online Forex terminology dictionary to learn and understand the meanings of terms such as “pip,” “spread” and “standard lot.”
As with options for account types, trading platform options offered by this broker are beneficial. Their main platform is MetaTrader 4, which is the dominant platform in the Forex industry for many reasons. It is highly reliable in terms of internet connection stability, it has excellent charting features and a large following of traders who create “Expert Advisors,” which are mini apps that automatically perform various trading and analysis functions. MetaTrader also offers a mobile version. AlfaTrade web based trading platform is called Webtrader and unlike MetaTrader 4, does not require the trader to store software on his or her computer and also enables them to trade on any internet connected computer. Another platform is Mirror Trader, where traders can observe experienced traders and mimic the trades of those experienced traders. This broker offers a system called Guardian Angel to provide traders with feedback on their trading progress, including strategies and suggestions to improve future trades.
Funding and Withdrawal
Many brokers are limited concerning funding and withdrawal options. This broker accepts credit cards, Skrill and Neteller, all of which enable near-instantaneous trading access once all the proper forms are submitted. They also accept bank wire transfers, but many banks charge for wires, so traders should check with their banks first before using this funding method. The same methods are available for withdrawals.
Trader Training and Education
Even experienced traders recognize the value of remaining current with the Forex market. One important element of this is being aware of economic news that often causes rapid and violent swings in currency pair prices. This broker supplies an economic calendar so that traders are not caught unawares. In addition to the Guardian Angel service they offer, there is also a daily market analysis designed to assist traders in understanding the day’s price movements, as well as to assist in formulating trading plans. They also provide a feature called Autochartist that provides advanced analysis tools to help traders in many ways, such as recognizing recurring chart patterns and predicting future price movements. One very efficient tool they offer for training and education are live webinars that cover every possible Forex trading topic.
Broker selection is a critical element for new traders and experienced traders. The decision is ultimately a very personal one, so it is imperative to take however much time is necessary to understand everything thoroughly before committing.