Any trader who has an interest in currency trading should know that opening a currency trading account has to be done carefully.
Scam brokerage, traders, and trading companies are scattered throughout the internet and without preparations, you will fall to their tricks. To know about the best trading company in Indonesia you can search the websites of service providers online.
Image source google
Even if you can get a real broker, there are some things that you should check first in order to select the one with the most advantages over the others. These are a few aspects that must be considered when you would like to open a currency trading account:
Leverage means the use of various financial means or borrowed capital, such as the border, to raise the potential return of an advance. In the market, it means a loan that offered to investors by the broker that handling his forex account.
Example: Leverage 200:1 where 1 standard lot is USD10,000. This means that you will need USD10,000 /200 = USD50 in your equity to open 1 standard lot. Differences in leverage can mean different profit opportunities, so make sure you have checked this factor.
Spread is the difference between bids and ask price. Ask is the price when you buy while the bid is the price when you sell. Different trading companies offer different spreads and take compensation from it.
Some other brokerages will charge commissions for each trade in addition to this spread. High spreads will make it more difficult to earn profits for each trade, so make sure you have to check it thoroughly.