Feb 13, 2019

The perfect introduction to the forex broker comparison

The perfect introduction to the forex broker comparison: the most important terms

Especially for beginners it is extremely important to know the different technical terms exactly in order to be able to act successfully. Here it may come to no mix-ups, in order not to experience blue miracles. We introduce a few of the most important terms in the Forex Broker comparison:

Spread: The spread represents the difference between the buying and selling price of a currency pair in the respective trading platform. This calculates the fee determined by the broker. The spread is indicated in so-called pips.

Max. Leverage: The leverage is provided by the broker and makes it possible to move significantly more capital than has been deposited. It can therefore be regarded as a loan from the broker.
Leverages make trading activities particularly lucrative. An example: With a leverage of 100:1, you can trade with an amount of 10,000 $ if you deposit 100 $.

Account: The broker determines a certain minimum deposit that must be made. The amount of the payment can be between five and 50,000 $.

Max. Bonus: Numerous brokers advertise with bonuses to attract new customers. In many cases, your first deposit will be credited to your account with a certain percentage. This usually requires some turnover before the bonus can be paid out.

Demo account: As you can see in our overview, most Forex brokers offer the opening of a free demo account. This allows you to trade to your heart's content and without risk, without running the risk of losing money. Get acquainted with the market and forex trading before you get into real trading and get down to business. Many demo accounts have a time limit - after which they are automatically closed again.

Commodities: Many Forex brokers now offer commodities that can be traded. Trading in gold, silver and oil is the most common.

Fees: As a rule, the fees are limited to the current spread. However, some providers charge additional commissions. Attention: Various brokers cleverly hide the fees behind deposits and withdrawals. This is often overlooked.

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