forex strategy > How To Choose A Forex Broker

 

In the first stage, which will pass through some of the main questions you need to ask in reviewing various brokers. Then, check out different brokers and features available. We have prepared a guide for comparison by adopting some of the most frequently asked questions via the Internet, and discussed some of the most often asked about the runners out there, so you do not have to.

With this guide, you can limit your options and take the final step of talking to different brokers and demo trading on different platforms.

Do your research

Before comparing brokers, you know what to look for? No? Well, here are some key questions to ask:

 

  1. This agent is registered with regulatory authorities? Check if your agent of choice is registered with the National Futures Association and Commodity Futures Trading Commission if they are based in the U.S.. If the broker is based in the UK, see the Financial Services Authority. If the broker is not registered in any of these or any other firm regularly recognized, then you may want to think twice before signing with them.
  2. Dealing Dealing Desk broker or desktop? Which broker offers fixed and fixed margins? How wide are the spreads? These questions are more important for traders who like to take quick profits on a few pips. Great margins and / or variable may be cut into the benefits of this type of business strategy.
  3. How much or how little power that a broker will give you? We recommend reviewing “Making the murderer” before deciding on the amount of leverage that fit your trading style. The phrase “less is more” could save all rookies
  4. Of course, we will not start trading with real money right now, right? Well, when it does so with a winning strategy and you are ready for direct trade, knowing the amount of risk capital that you have to start with one big difference. If you have $ 2000 or less to begin with, then you probably want to start trading “micro” a lot. Not all brokers have this feature.
  5. Are loan officers or debit daily rollover interest? Some brokers either do both, deduct the interest, or none. This information is important for traders who hold positions overnight.
  6. Is this running on premium services, such as charts, news and commentary on the market? How important are the premium services of my trade?

Compare Brokers

No need to beat around the bush, now must go to the Broker Comparison Guide.

Open a demo account and ask questions.

Choose at least two runners that meets most criteria and open demo accounts. The trade market environments. Know all the different characteristics of each platform. If you have any questions, do not be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.

Most trading platforms are very similar show to their counterparts in vivo, but not exactly the same. There may be a difference in speed of execution is broken, and the reliability of the platform (most of the time the actual accounts are more reliable than demo accounts). When you have your strategy down and you’re ready to move to a real account, start small, test the waters and see if this particular agent to suit your business needs.

Most important things to consider when choosing a Broker

The foreign exchange market retail is so competitive that the thought of having to sift through all available agents can give you a headache.

Choose which broker to trade with can be an overwhelming task, especially if you do not know what to look for.

In this section we discuss the qualities to consider when choosing a broker.

1. Security

The first and most important feature that a good broker should have a high level of security. After all, you will not deliver thousands of dollars to a person who simply says it’s legit, right?

Fortunately, control of the credibility of a broker is not difficult. There are regulatory agencies worldwide that separate fraudulent confidence.

Below is a list of countries with relevant regulatory bodies:

  1. United States: National Futures Association and Commodity Futures Trading Commission
  2. UK: Financial Services Authority
  3. Australia: Australian Securities and Investments Commission
  4. Switzerland: Federal Banking Commission
  5. Germany: Bundesanstalt für Finanzdienstleistungsaufsicht
  6. France: Financial Market Authority

Before you even think about putting your money on an agent, make sure the broker is a member of the regulators mentioned above.

2. Transaction costs

No matter what kind of trader you are, whether we like it or not, will always be subject to transaction costs.

Each time you enter a trade, you will pay for either the spread or commission so it is natural to look for more affordable rates and cheaper. Sometimes you may need to sacrifice low transaction for a reliable agent.

Make sure you know if you need tight spreads for your type of business, then review the available options. It’s all about finding the right balance between security and low transaction costs.

3. Deposit and withdrawal

Goodwill Brokers allow you to deposit and withdraw your winnings without problems. Brokers really have no reason to make it hard for you to withdraw your winnings because the only reason I hold your funds is to facilitate trade.

Your agent will only have money to make trade easier and there is no reason for you to have difficulty getting the benefits they have earned. Your agent should ensure that the recall process is fast and smooth.

4. Trading Platform

In online forex trading, most trading activity occurs through the trading platform of the runners. This means that the trading platform agent should be easy to use and stable.

When looking for a broker, always check your trading platform has to offer.

Does free news service? How about easy to use graphic tools and techniques? Does it present you with all the information needed to operate correctly?

5. Execution

It is mandatory that your agent will complete the best possible price for your orders.

In normal market conditions (liquidity, for example, normal, not press releases or major events surprise), there really is no reason for his agent to fill you with no cases or very near, the market price is when you click “buy” or “sell” button.

For example, assuming you have a stable internet connection, clicking “buy” EUR / USD to 1.3000, you should get filled at that price or micro-nuggets of it. The speed at which orders are filled is very important, especially if you are a reseller.

A difference of a few pips in price may make it much harder for you to make that trade.

6. Customer Service

Runners are not perfect, and therefore you should choose an agent that could be easily contacted in case of problems.

The competence of the runners when it comes to the account or technical support is as important as its performance in the execution of operations. Runners can be friendly and helpful during the process of opening the account, but terrible “after sales” support.