What Trader Should Not Neglect While Selecting Forex Brokers?

"High Risk High Return" - The quote that makes new traders to get carried away with the high return belief and ignoring the risk factor attached to it. In a recent survey made on Forex account opening, some facts have revealed that 91% of Forex accounts closed in first 3 to 6 months of their opening. Does it certifies that only 9% of retail Forex traders actually trades or makes profit? No, the two major reasons behind it are; fresh minds are losing interest in trading due to lack of knowledge and incorrectly selecting Forex broker who has misguided the trader for generating revenue from account opening or completing target.

Five most important things that people ignore before opening Forex trading account or while selecting Forex broker for trading are

• Little information is always dangerous and leads to devil's home: A well said quote which is very well justified here - mostly Forex brokers gives little or basic knowledge about Forex trading and encourage new traders to open Real Forex Account for trading. This results in trades failure due to margin call amount constraint. Only "Forex Trading Education" can solve this, so always take full training of Forex Trading from Forex brokers if the facility is available.
• Frequency of Trades: The more trades you place the more money you will lose, no Forex broker is going to stop you as their interest is in commission which the generate from your trades. The equation says "High Risk High Return", but that does not says frequent or regular trades. A wise trader will always be in search of a better trading opportunity for profit marking as trading itself is a risk and returns are the profits you make using right strategy and action.
• Dealing Desk: Always go for a

Forex brokers that does not offer dealing desk. The reason one should not trade with dealing desk option because Forex Brokers uses dirty techniques to generate revenue which may screw up Forex trading account

• Term about Trade Execution - Pay special attention to Terms and Services. Most brokers fill your entry offers at worst possible price which is not imaginable by traders. This resulted in most of the traders hardly making any profit and stop-losses getting triggered majority of the times. This mainly happens during upcoming financial news e.g. on first Friday of every month US Farm payrolls news during NYSE trading session.
• Variable Spread: A spread is the price difference between ask and bid. Usually the spread for EUR/USD pair is 2 pips among most of the Forex brokers. These brokers' follow variable spread method and practice not to show or guarantee the width of spread. Majority of the times, disclosure in Terms and Condition is "Under normal market condition we offer 2 pip spread for EUR/USD currency pair". And the funniest thing is that there is no Normal Market Condition as market is full of uncertainty.

If one follows right approach for Forex trading, they can make huge profit from this exciting world of Forex market. I hope this would improve your focus in preparing yourself with right tactics.

M. Azeem, Ceo – Readyforex.com is a trader specialized in currency trading, his main purpose is to provide a better connectivity with leading Forex brokers.