I’ve received a letter from a reader asking me to help him chose between two forex brokers. Before getting into the details, I asked him if he had tested those brokers with a forex demo account. I was surprised that he didn’t even consider it. This is very important: you should always test a broker with a demo account. About two months ago, I wrote about this issue in a post titled Forex Demo Account – A Must for Every Broker. A forex demo account enables you to get to know the broker’s software before putting real money in. Who would want to lose money just because he missed an important button? Who would want to throw cash stupidly? My opinion regarding this method of testing hasn’t changed. It even got stronger. Three weeks ago, new regulations have been imposed on forex traders that work with American brokers. With the new First In First Out (FIFO) rules by the NFA, forex software now includes new restraints that are supposed to prevent the possibility of hedging. Some brokers have fully adapted to the new rules, some promised that they bypassed them elegantly while others just send you to their foreign subsidiaries. These new NFA regulations are confusing. Here’s a post about dos and don’ts regarding the new NFA rules. Forex trading takes time to learn, and is complicated enough before these new rules. When adding this new level of complexity (at least for American brokers), it’s very very important to take the time and test your new broker before putting in real money. Further reading: A special page concentrating all the articles regarding a forex demo account. If you wish to go straight to the first article about it, here’s why a forex demo account is good for technical analysis. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Basics & IndustryForex BasicsForex Software share Read Next Forex Daily Outlook – August 25th 2009 Yohay Elam 13 years I've received a letter from a reader asking me to help him chose between two forex brokers. Before getting into the details, I asked him if he had tested those brokers with a forex demo account. I was surprised that he didn't even consider it. This is very important: you should always test a broker with a demo account. About two months ago, I wrote about this issue in a post titled Forex Demo Account - A Must for Every Broker. A forex demo account enables you to get to know the broker's software before putting real money in. Who… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.