Posted by forex at 2:31 AM
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1. Ask yourself how much interaction you want with the direct access broker. Some firms allow you to trade whatever you want without interference or advice. Others offer trading strategies that help you decide on the best trades.
2. Work within your budget. The more features a direct access broker offers, the more the company will charge per trade.
3. Focus on currency trading by working with a direct access broker who offers FOREX (the Foreign Exchange market) analytics and easy-to-use capabilities.
4. Opt for the right level of services. There are platforms online that cater to the trader who will use it to make her living, rather than the trader who is just day trading as a hobby. These more advanced platforms offer global trading accessibility, after-hours trading and other higher-level capabilities.
5. Sign up with one of the many online direct access brokers. In keeping with SEC rules, you may have to attest to how many trades you intend to make and how frequently. You may also have to explain how much trading experience you have and what your net assets are.
6. Make sure you are getting instant execution. Day traders need to buy and sell at certain price points to make any kind of profit, and lag time can mean lost income. Chatting with other day traders in a chat room can be quite enlightening as to the benefits (and pitfalls) of using various direct access brokers.