Most demo trading platforms are very similar to their real money trading account, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability.

What should you look for when choosing the trading platform? Which is the best forex trading software in the market? The best way to understand it is open a demo account. Learn all the different features of each trading platform. Trade in different currency market conditions.

With forex demo account possibilities you have the chance to experiment with tactics and strategies that you might think work and more over you can get fully acquainted with how to execute orders.

If you have questions, don’t be afraid to ask. Many brokers have 24 Hour customer support service and would be happy to answer your questions.

Before start trading on Forex, be sure that testet forex trading platform will work on your system, and contains all the features you need. ()

Today forex brokers provide you with a number of services besides trading. There are a large number of brokerage firms and dealers which provide different services and features. So it becomes an important task to find a broker which suits your need well.Factors To Consider Before Choosing a Forex Broker. Choose a brokerage – evaluate their price per trade, minimum account balance, product offered, etc. Is the forex broker regulated, Leverage and margin call policies,

Finding the right Forex broker

By filling in the search we will provide you with a of Forex brokers list that match your investment needs.

By Motley Fool Staff

Read more: http://www.babypips.com/school/history-of-retail-fx.html#ixzz1hpnHSTF2

Forex brokers choice:

Regulation and Security
Commissions and spreads
Initial deposit
Leverage and margin requirements
Forex trading platform and software offer
Currency pairs offered
Customer support

In short, the path of success in forex trading is all about understanding how your forex broker operates and variables such as forex market mechanics often prove secondary.

If you have already read the first article in the series, Structure of the Forex Market, you will recall that market mechanics are responsible for the variation in bid/ask spreads, and also for slippage. So it seems the two biggest novice traders’ pet peeves are not so much a function of who their broker is, but rather their lack of understanding of the way the forex market operates.

A broker that offers a fixed spread tends not to fill orders during periods of low liquidity because this would expose them to undue risk, and as much as their job is to cater to their clients, remember they are in business primarily to make money for themselves. Some brokers also offer guaranteed order fills, such as “guaranteed stop losses”. Again, if there is no counter party to take the trade, they have to expose themselves to risk in order to fulfill this guarantee, so don’t be surprised if you see such a broker quoting different/delayed prices around important trend lines or support/resistance levels. Be especially aware of brokers who offer both guaranteed fills AND fixed spreads.

When a broker offers something that seems too good to be true, you would be wise to question how exactly their business model is able to support such a risky practice. As a general rule, a broker will help you only when your interests are aligned with theirs. On the other hand, brokers provide a very valuable service, without which you wouldn’t have the opportunity to profit from the forex market, so please think about how it all comes together before blaming your broker for everything.

Brokers who have been making their presence felt for long have an established and well-defined set of practices and they don’t alter them as that will bring a bad name to their reputation while the unregulated brokers could not be trusted in the same way. However, things vary from broker to broker when it comes to enforcing these “defined boundaries”, especially when there is a little chance of clients ever even becoming aware of any transgression. However, the right broker will not be exploiting opaqueness of the forex trading market as that may mean the existing clients embracing a new broker.

Like any other business in the world, your forex broker also aims to make as big as profit as possible. There are about as many ways to go about this as there are brokers. For those who are in it for the long haul, however, it is generally best to adopt a set of practices which are deemed fair by their clients: certain boundaries are set, and operating beyond them can cost a brokerage its reputation, and along with it its clients. Straying outside these boundaries, therefore, is not considered as being in line with the long term goals of the business. How strictly these boundaries are enforced, especially when there is little chance of clients ever even becoming aware of any transgression, again varies from business to business.

For the sake of simplicity, in this article we assume that everyone in the business is squeaky clean, as if every client could peek into the broker’s back office at any time and dissect every trade. This is obviously not the case, and many brokers do take advantage of this opaqueness, but the details of that are best left for another discussion.

So without further ado, let’s get into the details of how forex brokers function. Somewhat removed from the top-tier interbank market, retail forex brokers are there to provide a service that would otherwise not be available, that is, giving an investor with a $10,000 bankroll the chance to speculate in the up-until-recently very exclusive forex market.

There are generally considered to be 2 types of brokers providing access at the retail level: Electronic Communications Networks (ECNs) and Market Makers. ECNs are generally somewhat more exclusive, requiring larger deposits to get started, but are seen as providing more direct access to the interbank market. As we will see, there are certainly advantages to this, but some disadvantages as well. Market makers, on the other hand are more often than not, the counter party to their clients’ trades, creating somewhat of a conflict of interest, whereas ECNs profit from commission fees charged directly to the clients, regardless of the result of any trade, they are seen as being completely impartial – an ECN has no incentive for a client to lose money.

In fact, one could argue that an ECN stands to profit more if a client is successful, meaning that s/he will stay around longer and they will be able to collect more commission fees from them. A market maker, on the other hand, being the counterparty to a client’s trade, makes money if the client loses money, providing an incentive for some shady practices, particularly in an unregulated market. The extent to which this happens varies among individual brokers. There are also some benefits to trading with a market maker (see our ECNs vs. Market Makers article) Some brokers also provide a service that doesn’t quite fit into either category – they route different orders differently, depending on complex algorithms, or on a dealing desk, that analyze each order and attempt to fill it in the way that will be most beneficial to the broker’s bottom line. They can offset some client orders against one another, effectively creating an in-house market, they can choose to be the counterparty to a client’s trade (trade “against” the client), or they can offset their position with a hedge through a higher-tier counterparty. Note that the market maker is mainly concerned with managing its net exposure, and NOT with any single individual’s trades. They are NOT gunning for your stop losses specifically, but may be gunning for clusters of stops.

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Forex trading is no more risky than trading stocks or commodities. Those who call the currency market highly risky fail to differentiate between the market and the participants. The majority of Forex traders fail and the overuse of leverage is one of the reasons it happens. Most beginners in the Forex market do not know how to use leverage to properly manage risk.

Don’t think that just because Forex brokers allow you to use high leverage with a low minimum deposit that you can “Get Rich Quick“. Having an aim of trading profitably is not about making your millions by the end of this month or this year.

Forex traders and investors are offered the opportunity to play the market with a high degree of leverage. In the stock market leverage is typically to 2:1, meaning you can buy twice as much stock as you have cash in your account by borrowing the difference. In Forex it is possible to trade at 50:1 or higher leverage up to 500:1.

A highly leveraged Forex trade can quickly delete your trading account. The greater the amount of leverage on investment capital you apply, the higher the risk that you will assume.

Let’s illustrate with an example:

Trader A have a trading capital of US$ 1,000 and will trade Mini Forex account. Both Trader B and Trader C have a trading capital of US$ 10,000. After doing some analysis, all of them buy the EUR/USD at 1.3100.

Trader B chooses to apply 50:1 real leverage on this trade by buying US$400,000 worth of EUR/USD (50 x $10,000) based on his $10,000 trading capital. Because EUR/USD stands at 1.3100, one pip of EUR/USD for one standard lot is worth approximately US$10.00, so one pip of EUR/USD for four standard lots is worth approximately US$40.00.

[warning_alert]If EUR/USD fall to 1.3000, Trader A will lose 100 pips on this trade, which is equivalent to a loss of US$4,000. This single loss will kill the Mini Forex account.[/warning_alert]

Trader C is a more careful trader and decides to apply 5:1 leverage on this trade by buying US$40,000 worth of EUR/USD (4 x $10,000) based on his $10,000 trading capital. That $40,000 worth of EUR/USD equals to just one-half of 1 standard lot. If EUR/USD rises to 121, Trader B will lose 100 pips on this trade, which is equivalent to a loss of $400. This single loss represents 4.15% of his total trading capital.

Refer to the table above to see how the trading accounts of these three traders compare after the 100-pip loss.

In general, the less leverage you use the better for you.
Keep in mind that first learn to trade profitably without leverage.

The extreme amounts of leverage that are common in the Forex markets. Experience traders know how to use leverage judiciously and to their advantage – this takes experience, time and diligence. Leverage size in Forex should be totally flexible and customizable to each currency trader’s needs.

forex leverage calculator