What is the cheapest forex broker out there?

by David Jenyns on August 28, 2011

Question by Christian44: What is the cheapest forex broker out there?
I would like to know about forex brokers that offer low balance accounts. Do you have any recommendations? What about forex research? What are all the important events or meetings that affect the forex market?

Best answer:

Answer by Common Sense
Here’s the problem;
There are many low balance Forex brokers out there…. the lower the balance requirement, the larger the spreads are. The higher spreads significantly reduce your chances of being profitable.

The last part of your question tells me you’re 6-12 months away from being ready to open an FX account. You need to buy 6 or more books on trading, Forex Trading & risk management.

What do you think? Answer below!

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Will August 28, 2011 at 11:26 am

trading is like a university education, it requires on the order of 10 to 20 years to become proficient and you have to be ready to accept it as a full time career. With that said, the broker that I use is oanda. I use this broker mainly because it allows smaller lot sizes which allows me to be very flexible with my exposure.

My recommendation- do not trade with less than 50k account. Do not trade live until you have risk capital (money that you will not need or regret losing) or minimum few years on paper accounts.

Forex research is a huge topic. Do not fall for technical analysis, it works in some situations, but the best bet would be to read the prices correctly via price patterns and timing. Do not trade during non farm payrolls or during tokyo and NY lunch hour. Trade during the overlap of US UK sessions for best liquidity. Watch for inflation levels, what central bankers say (and if what they are saying is just a warning or if they are serious about it).

For example you would want to monitor the japanese central bank decisions right now because their currency is strong enough to make their bank sell it to lower the price to keep exports competitive.

For CAD, watch for gold prices (oil is their major export). ect.

FINALLY: the only way to make money in forex safely is with law of large numbers in terms of capitalization. You have to have an account upwards of 50 mil, so this is not a get rich quick thing. The real money lies in market making and dealing.

money August 28, 2011 at 12:03 pm

hariah, the Islamic law, prohibits interest payment. However, the rollover interest is an integral part of forex trading. How can a Muslim forex trader from Saudi Arabia or the United Arab Emirates trade currencies without violating the religious law? The answer is to find a forex broker willing to offer an account with no overnight interest. Such swap-free accounts are usually offered only to Muslims in order to prevent abuse. To substitute for the revenue from a missing swap, forex brokers also charge a flat fee for this service. The only exceptions is the American forex broker Fastbrokers, which does not charge any additional fee for its Sharia account.

Leo Nice August 28, 2011 at 1:01 pm

low spreads and fast execution – fxpro
ecn low entrance with low commision -act

whatever you do, consider my experience: for market makers, i would not pay over 2pip spreads on eur/usd and for ecn broker which offers under 1 pip spreads, commision of over $ .8 per 100k traded

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