In general, qualified forex brokers offer a reliable trading platform, 24/7 customer support during forex trading hours, access to forex news and commentary, technical analysis tools and charts, etc. Brokers offering less than the forex services mentioned should this should not be taken into account when choosing a forex broker as traders currently have a good chance of choosing retailers online.
Brokers who avoid answering your questions or calls are best avoided. Additionally, if the broker is known for giving requotes, he/she should be avoided as this issue can really cost traders money in the long run.
Technical and fundamental analysis are the two main forms of strategy in the forex market, which are exactly the same as in the stock markets. Individual forex traders usually prefer trading using technical analysis.
Below is a brief summary of both types of analysis and how they apply directly to forex trading:
Sometimes considered extremely difficult in the Forex market, fundamental analysis is usually used only as a means of predicting long-term trends. It is important to note, however, that some traders trade short-term solely on the basis of press releases. There are different fundamental indicators for currency values published at different times. Here are some of them:
* Non-farm payrolls
* Purchasing Managers Index (PMI)
* Consumer Price Index (CPI)
* Retail sales
* Consumer Goods
Unlike fundamental analysts, technical analysts of the forex trading market analyze price trends. The only significant difference between trading technical analysis in forex and trading technical analysis in stocks is the time frame that comes with forex markets being open 24 hours a day.
Some of the most common forms of technical analysis used in FOREX:
* The Elliott Waves
* Fibonacci Studies
* Parabolic SAR
* Pivot points
Many technical analysts often combine technical studies to create more accurate forecasts. The best method for them is to combine Fibonacci studies with Elliot waves. Others prefer to create trading systems to often find the same buy and sell conditions.
There may be brokers who can make you wait quite a long time before withdrawing your funds. So make sure everything is clear before giving them any money. Also, beware of Forex brokers with mysterious trading rules, such as giving you a minimum time to hold a position.
Keep in mind that forex brokers usually change a commission on trades by taking part in the bid-ask spread. The tighter their spreads, the more money the trader saves, which can make a world of difference for active traders.