Rank	Broker	Review
1.	eToro	Review
2.	Forex Yard	Review
3.	Easy Forex	Review
4.	Dukascopy	Review
5.	AvaFX	Review
6.	4XP.com	Review
7.	Finexo	Review

Previous Lesson: Private - How does forex work? | Next Lesson: Corporal - Pick a chart!

Selecting a Broker

Topics for this lesson:

a) The Right Vehicle
b) Paying the Spread
c) The Right Tools
d) The Size of your Army
e) Pulling the Trigger

The Right Vehicle

All right recruit, it’s time to start learning how to pull the trigger. And by that I mean, how to place a trade. You’ll first need to find a Forex broker. Choosing a broker is important, because they are your vehicle and carry your weaponry while you’re at war.

When looking for a broker, be sure to keep an ear out for what other people have to say. There are hundreds of brokers out there and you want to make sure you have one that will be there for you when you need them. No sense in opening your account with a broker, only for them to go bankrupt the next day and they take everything with them on their way out the door, including your deposit!

When picking out a broker, it’s important to know their role in all of this. Every broker wants you with them, because you will ultimately make them money. How so you ask? Just like any market, whether it is food, clothes or currency, there’s always a mark up. A broker essentially takes your order, marks up the price, and matches it with a buyer who is willing to purchase it at the marked up cost. That mark up is called the spread.

Paying the Spread

Amongst the most popular currency pairs to trade the spread can range from around 1 pip to 7 pips. The lower the better as you’re paying less for the cost to trade. The higher the spread is, the higher the volume that is being traded. This in turn gives you a greater opportunity to profit more. However, that is all within reason as there are pairs that have 50-100 pip spreads and unless you’re a master in that arena, it’s not even worth making the attempt to fight in those exotic battles.

It is vital that you learn the average spread per currency pair. You don’t want to go with a broker that offers an average of 10 pip spreads for EUR/USD when everyone else on the block is offering 1-2 pip spreads for that pair. That just doesn’t make any sense at all.

The Right Tools

Brokers can also differ on what tools they provide for you. You’ll need a trading platform so you can chart the movement of currency. Most brokers offer such platforms free of charge. However, there are a few sticklers out there that require you to pay for a charting platform. And it’s the opinion of myself and the rest of the FX Trading Network staff, that free is definitely the way to go.

Good brokers offer fast and reliable support for their customers. And they should be available to answer questions from prospective clients as well. So do not hesitate to get in contact with any broker you are considering to get a feel for how they treat you. Remember, you are going to war with them. You want to make sure they have your back when you need them.

The Size of Your Army

What size war are you willing to wage? That can help decide which broker you should go with. Never go to war with more than you are willing to lose. If you happen to lose in the battlefields, you want to be able to return home without a devastating change in you lifestyle. So whether it is $100,000 or $100 will make a difference as to which broker you open an account with. Brokers as well are particular with who they allow into battle and in doing so they all have requirements as to the amount of money you can open an account with.

The FX Trading Network has sent their staff into the battlefields to rank all the various brokers that are out there. Be sure to read our reviews and recommendations and find which broker works best for you.

Now that you have your broker selected, it’s time to fund your account. Remember; never go to war with more than what you are willing to lose.
Once you have your account up and your favorite charting platform up, you’re in a position to pull the trigger. This doesn’t imply that you’re necessarily ready for war. It does mean however you have the vehicle to get you there. Anyone can pull a trigger. You will require training however to hit your target.

Pulling the Trigger

In Forex, there are two types of orders that you can place. One is a limit order, while the other is a market order. Depending on your strategy will have a decision on what order you will place. A limit order is when you set a price that you want to enter the market at. Once prices hits that limit, your order will automatically initiate. A market order is for immediate trades. If it’s not important about the specific price that you want to enter, and you just now you need to enter the market now, you’ll place a market order. Your order will initiate at the current market price.

Once you are in the market, there will be a point where you will want to exit the market. Whether it is for profit or at a loss, you’ll need to set an order to pull yourself out of battle. You will want to set a level to “Take Profit” order, or a “Stop loss” order. Preferably, both of these orders should be limit orders. However, there are times when they can be market orders.