Forex brokers can be found in thousands. However, there are many forex brokers available if one searches the internet. Finding a good Forex Malaysia broker can be difficult. Here are some tips to help you find one.
The pip spread is the most important tip in choosing a forex broker. You can earn more if you choose a forex broker with a tight pips spread. It is difficult for forex traders to reach their profit targets if there is a large pips spread. Consider this: We place a sell order because we expect the market will move downwards. We need to include the pip spread in our calculation in order to reach our profit target. It will look something like this: 100pips = target profit + 10pips = pip spread. 110pips
The leverage is the second tip for finding a good broker. The broker should offer you leverage of at least 1:50. This is considered very high leverage. A beginner should aim for a leverage of at least 1:200. Sometimes, a broker may offer a leverage of up to 1:400. Because you can use less capital but can still control more units, a beginner should get a leverage of 1:200.
The third tip for becoming a great forex broker is to have a solid background. A good broker should be at least registered in their country. Unregulated forex brokers can also be known as illegal brokers. An illegal broker was not allowed to open an account. Malaysia is an example of a country where it is illegal to trade money for others. Although they call themselves broker, it is illegal. The Malaysia government recently published this story in the newspapers. This is a serious matter, as many people have been conned.
I hope you found these tips useful. You should still search for other brokers and open a live account to test them out. Because if you do not try it, you may never be able to experience what they offer. You might also consider joining a forum to receive more information about the broker you’ve chosen.