15 Questions to Ask Your Broker

[davidjss]

The following 15 questions are based on the above information and relate to basic information that your Forex Broker should answer without hesitation.
How long have you been a Forex Broker?
In what financial condition is your company? Will you show me your balance sheet?
Do you have good relationships with reputable banks?
Who is quoting the rates, my broker, a bank, or multiple banks?
Are the spreads fixed of variable?
How tight are the spreads?
Do you offer Fractional Pip Pricing?
Are there any trading restrictions?
Can I place orders inside the Spread?
Can I earn interest on positive rolls?
Can I earn positive rolls at all margin levels?
Are rollover rates displayed prominently? Where?
Does the trading platform allow me to hedge?
Can I lose more money than I put into my account?
What is the quality and availability of customer service?

Be aware that trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money thathttp://digitalcashpalace.com/forum/images/smilies/32x32/32%20(2).png you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.:32 (2)::32 (2)::32 (2)::32 (2):

 

[martyn]

I usually do not have a lot of questions on the broker that I use, but I pay more attention to how attitudes or comments of people who use the broker from another site. Then I also check if the broker has many branch offices or not, if you have a lot of branches, then usually the broker also has a great desire to maintain his reputation.

 

[eddiej]

I usually do not have a lot of questions on the broker that I use, but I pay more attention to how attitudes or comments of people who use the broker from another site. Then I also check if the broker has many branch offices or not, if you have a lot of branches, then usually the broker also has a great desire to maintain his reputation.

Yeah, people usually voice out their disdain or praise for a broker with gusto. So the most reliable sources of information about brokers would be from user feedback.

 

[Markllee30]

Thank you for this valuable post. This questions are really very important and every one should ask.

 

[Daisy]

Also, we want to know if we would get good support when we need them. We want to know what we can withdraw money fast and even in crisis like LR, we want to know what our money is safe and in certain broker your money is not safe. We also want to know that there is little snipping and low spread. We want to have fast connection to the trading platform and good advance system without a lot of snipping.

 

[gkintl]

While I agree with most of the questions that need to be asked, I am not sure whether any broker would reply positively when we ask for their balance sheet. As such, unless and otherwise a company is listed i the stock exchange, there is no need for them to practice that level of transparency. Instead of that we can check out the jurisdiction under which the broker is located. We can even ask for the registration number to verify.

 

[Daisy]

The more a company want to hide the more that there is a reason for them to hide. If a company who tried to hide everything from you then they're a fraud. Remember Bernard Madoff who would not give investors their monthly statement at all. Come on, you invested millions with no paper statement at all, when it came out, they said that he intentionally try to hide all details regarding his business from investors. He had reasons too. He scammed everyone.

 

[Decub]

But there are also things a company wouldn't reveal to investors. Some term it as company secret while others see it as one of the things the customer shouldn't know. No broker would tell you everything you want to hear if it bothers or is against the policy that she upholds. Even though there is need for transparency to some extent, a trader should only have access to the information he needs and not the one he wants.

 

[Pettyeve]

When a trader is looking for a broker to start trading with, he or she will consider so many things that he or she wants and make enquiries if the broker is able to give a positive feedback. Me I like to trade with old brokers that are strongly regulated if they accept low minimum deposit because they offer most of the things I want.

 

[Fx Master]

In spite of good trading knowledge that’s not possible at all to lead a comfortable trading life without having a reliable support from a regulated trading broker. We have to choose the broker which is regulated and for all time make sure security of funds , low transaction cost , easy withdrawal system without long time process , active customer service , superior execution and much more.

 

[helodear123]

I see a good list of questions to be asked or researched before choosing any decent broker as it is really getting hard to choose the right broker these days.

 

[Faal]

If we want to lead a better trading life we have to make sure first of all a credible platform which is regulated by the high authorize in this market place. Because the regulated trading broker for all time make sure security of funds at any investments with certainly. And they don’t restrict any kinds of trading techniques with scalping and hedging. so the possibility is very optimistic to lead a comfortable and secure trading life in these kinds of brokers.

 

[helodear123]

And they don’t restrict any kinds of trading techniques with scalping and hedging.

Not sure about this as they may restricts those types of trading which may violates their terms of services, in my opinion.

 

[Nezami]

When choosing a broker I have seen first of all we the traders always looking for the broker is regulated or not. But I think regulation of a broker is not a big deal when choosing a broker , the main issue the brokers credibility , practically the credible trading broker for all time ensures security of funds at any kinds of investments with a wide range of trading technologies.

 

[Robian]

Well, despite the age of this thread, it may be useful.
I'd like to add that the fact how quickly will a support team answer you, should be noted

 

[Fardin Alex]

If we want to get maximal result in Forex first of all we the traders have to make sure the broker which for all time ensures best trading environment for using any kinds of trading strategies by providing lowest trading spreads. Actually from all trading elements spreads is mainly considered as an important financial tool which an investor should consider when choosing a broker.

 

[Lee Mark]

Great job! Really we need to select our trading platform so sincerely since, security is a great issue here! Actually, after completing my demo session I spent here for 3 months for broker research only! I see, maximum Forex brokers are market maker! In addition, prime brokers are limited for the retail Forex traders!

 

[helodear123]

Maybe that is the reason i recommend doing some research before finalizing any decent broker because there are a lot many brokers in this industry and it is very hard to rely on anyone without checking their reviews.

 

[Tom Latham]

Maybe that is the reason i recommend doing some research before finalizing any decent broker because there are a lot many brokers in this industry and it is very hard to rely on anyone without checking their reviews.

Good idea! Even, I am following the same strategy! I mean the top review sites! Till now top review sites play the key role.

 

[Gito Dinev]

The likely question to ask your broker is what are your commissions like that is their commission percentage. And how the tide is there spread?