Meta Trader Forex brokers provide you with a way to easily navigate the Forex market. Meta Trader is the most commonly used trading platform software in the Forex market, and it is offered by most brokers. The success of your trading will depend largely on the quality of the broker you select. When comparing brokers, you should look at factors such as reputation, liquidity, withdrawal rules and account requirements.
Reputation
One of the most important factors to consider when you are looking at a Meta Trader Forex broker is his reputation in the industry. By choosing a broker with a solid reputation, you can avoid many of the problems that Forex traders can cause. The National Futures Association keeps records of every Forex broker in the United States, and their records can be accessed by traders who are interested in opening an account.
Liquidity
The broker's liquidity is also an important factor to consider. Traders need fast execution in the Forex market in order to be successful, and brokers have different levels of liquidity. Brokers who offer Electronic Communication Networks, or ECNs, generally have strong levels of liquidity. This is an electronic system that matches up buyers and sellers. Brokers who have relationships with large international bank networks often have superior liquidity when compared to smaller brokers.
Spreads
In the Forex market, brokers are compensated via the difference between the bid-ask spread on each transaction. This is the difference between what buyers are willing to pay and what sellers are willing to sell for. If you trade frequently, having a broker with low spreads will significantly reduce your transaction costs. Some brokers have fixed spreads, while others have variable spreads that fluctuate with the market. Getting quotes on the spreads offered by the broker can be beneficial.
Deposits and Withdrawals
The deposit and withdrawal rules are also an important factor to consider when choosing a Forex broker. Some brokers only allow deposits to be made through a bank transfer, while others offer more flexible options. Many brokers are now offering credit and debit card transactions, and some offer payments through third-party processors. It is also important to understand the withdrawal rules of each broker. Some brokers take several days to process payments, while others process them almost instantly.
Account Requirements
The account requirements set forth by each broker will also be different. Some brokers will require a large minimum deposit, such as $10,000, while other brokers might only require a few hundred dollars to open an account. Every broker will also have a different margin requirement, which is the amount of money that you have to have in order to open a position of a certain size.
Source - eHow
