Brokers do not charge commission on your trading but they do need to make an income from hosting trades and there are number of ways in which they make money from their clients. The type of trades you are likely to do may make a difference to what type of broker is right for you. The market is hugely competitive so fees do not vary enormously but all brokers are slightly different so it is worth looking around to find one that will give you a decent deal.
Spread
This is the difference between how much the broker sells the currency and how much they buy it for. Most brokers have a spread of between 2-4 pips for the most commonly traded currency pairs.
Margin provided
The deposit you need to provide to start trading.
Funds required to start an account
These vary enormously so make sure you choose a broker with a minimum that you are happy with.
Fees for small trades
Some brokers charge for small trades, some don’t. If you are likely to begin trading with small amounts, check what fees could apply.
Rollover fees
Most brokers charge a fee for holding positions overnight. This is usually very small but again it makes sense to check before signing up.
You also need to make sure that your broker has a Forex trading platform that you are comfortable with and find easy to understand. Most brokers will allow you to download a free demo of their Forex trading platform so that you can try it out before signing up.
