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How to choose a Forex broker?

Andy

Administrator
Staff member
How to choose a Forex broker? or how did you find the broker that you are currently trading with?

And old question but I guess each trader will have different views about this matter. Some refer brokers who offer no deposit bonus or posting bonus but for serious one, big traders who make a living with Forex, it's totally different.

For the list of online forex brokers in comparison check out: http://digitalcashpalace.com/forex-brokers-comparison/

I choose my broker based on:

0. Regulation.
1. Where is country that broker based/operated?
2. Spread.
3. Account type, does the broker offer cent account? ECN account? is CFD trading available? Gold trading? leverage? is swap-free available?
4. Trading platform and funding/withdraw method.
5. anything else.

If #2. spread is really a matter for you so may want to check out Forex brokers spread comparison table for the better deal. :)

Broker is the place that we will invest our money in so choose the right one. Be certain that you read trading condition before get started with any broker. ;)
 

ProTrader

Forex Supporter
Regulation and spead are my standard for choosing a broker.

I cannot give my hard earn money to some brokers that cannot afford their own regulation for whatever reason they give. A broker must be regulated.

Variable spread is more favor for most traders but not for me. I would choose fixed spread over as I can certain what I paid for when I trade, especially when I trade at news time.
 
As for me I do consider the spread and its the most thing which I do consider while chosing a broker because a broker with low spread will charge less and save my margin compare to all the high spread broker.
 

ProTrader

Forex Supporter
As for me I do consider the spread and its the most thing which I do consider while chosing a broker because a broker with low spread will charge less and save my margin compare to all the high spread broker.

Yes, most traders care about spread when choosing a broker because it's what we need to pay a broker when trading and good if it slow and small but the fact that most brokers offer really high spread around 3 pips for major pairs, unless you trade on ECNs.

I check the broker spread compare table but so far, still not find which broker offer best spread condition! I checked it here http://digitalcashpalace.com/brokers-spread-comparison/
 
Well 3cent is a little bit high but I think the best spread that will be suitable for any newbie should 2 spread down but I dont know if fixed spread and fluating spread which is much better since am only trading with fluating spread and not yet testing fixed spread.
 

ProTrader

Forex Supporter
Well 3cent is a little bit high but I think the best spread that will be suitable for any newbie should 2 spread down but I dont know if fixed spread and fluating spread which is much better since am only trading with fluating spread and not yet testing fixed spread.

I would prefer fixed spread as I will know exactly what I need to pay when trading though that mean the spread will higher comparing with floating spread in normal market.

Moreover, I will not face widen spread at high activity market.
 
I agree with fixed spread we know how much we get to be deducted for each trade that we open the so we won't have problem with the sudden increase in spread. Anyway the more important thing is that the broker is not scam one.
 

ProTrader

Forex Supporter
I agree with fixed spread we know how much we get to be deducted for each trade that we open the so we won't have problem with the sudden increase in spread. Anyway the more important thing is that the broker is not scam one.

Yup, that is why regulated Forex broker is the first thing that we need to pay attention. For whatever the broker saying for their advances we must check for broker regulation and all related information.
 
Fix spread is a good way to earn money in forex. Since you can maintain your SL and your TP without worrying that you going to get hit by sudden change of prices. I experience in one broker site that the price is not the same as regular price range in other broker site even though I also use the same platform.
 
It's really important if we will check the Forex broker if it's regulated Forex broker because there are just many Forex brokers some are even giving some bonus, I just saw some Forex broker which is in prelaunch and it's giving 100 dollars when you sign up, so see? those are likely a scam one.
 
Hi all,

I am very new at this and I am not sure where to start from. I am guessing a good start would be to chose a broker. Based on your earlier posts I understand that regulation and spreads are the most important things I have to consider when making my choice. Reading through a bunch of other forums I also came to think that the type of broker you chose also makes a difference (STP/ECN vs MM). I think I'd rather chose an STP or ECN broker as their quotes are more reliable and usually they do not requote when executing your trades - am i getting this right?
Another thing is that I am still reading up on different type of strategies one could use and am inclined to think that scalping is something more appropriate for me. However, not a lot of brokers will offer scalping or hedging. Can anyone explain to me why that is?
I really appreciate any input from you guys, thanks!
 

Andy

Administrator
Staff member
Hi all,

I am very new at this and I am not sure where to start from. I am guessing a good start would be to chose a broker. Based on your earlier posts I understand that regulation and spreads are the most important things I have to consider when making my choice. Reading through a bunch of other forums I also came to think that the type of broker you chose also makes a difference (STP/ECN vs MM). I think I'd rather chose an STP or ECN broker as their quotes are more reliable and usually they do not requote when executing your trades - am i getting this right?
Another thing is that I am still reading up on different type of strategies one could use and am inclined to think that scalping is something more appropriate for me. However, not a lot of brokers will offer scalping or hedging. Can anyone explain to me why that is?
I really appreciate any input from you guys, thanks!

Yes, ECN/STP brokers are more reliable since they have nothing to do with quote, they don't requote you. True ECN brokers don't make money from spread, they don't trade against you.

But, ECN brokers require larger amount of deposit to open account, you can compare ECN Brokers and choose the best one for you: ECN Brokers List | ECN/ STP Brokers Comparison

Market maker brokers are not bad either, the fact that many reputed brokers are MM and they doing well.

Why some brokers don't allow scalping? It's interesting question, I create a new thread about this matter so we can discuss more about it Why some brokers don't allow scalping?
 
[MENTION=3586]s@ndr@[/MENTION]
Can you elaborate more what broker site that you really have in mind? Because for me its all about broker sites and not about what kind of server platform or server connection that broker site uses as theirs always advantages and disadvantages.
 
I don't know what are those brokers that don't allow scalping or hedging. And I don't want yet to have other forex broker since I can't focus in many trades already and I do want to have scalping or hedging so atleast I have chance to still be in profit when I'm in loss.
 
[MENTION=3586]s@ndr@[/MENTION]
Can you elaborate more what broker site that you really have in mind? Because for me its all about broker sites and not about what kind of server platform or server connection that broker site uses as theirs always advantages and disadvantages.

I dont have a particular broker in mind. For now i am just looking around. When you mean broker site you are referring to their website correct? What do you expect a good website to contain?
 
Search for Foreign exchange agents who need a low initial down payment which range from $300 to $500 or less. Not every agent has this feature. Some agents need their customers to get lots of money, which is not the best option for new investors.
 
It's not really a best option for a new investor to put a lot of money that's why you will now see a lot of Forex broker that offering a minimum of one dollar as your investment so you can start trading with such amount of deposit.
 
Yeah it's great we can invests a very small on some brokers. So I think it is safe that way so we would know which brokers are good one. So I hope that I would not make a mistake in choosing a right broker for me.
 
Yes, that's possible even having 1 dollar for both deposit and withdrawal but most of it are done in payment processors its not for the bank wire or transfer. But so far, many brokers are using LR as we know that they have here advantage of low fees.
 
I never knew some brokers make use of LR because to me majority of forex trading is done without it.sincerely to me choosing a great forex broker isn't that an easy task but doing it with much research would really be helping.
 
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