In choosing a broker, or any vendor of any product or service, the three essential elements are price, quality and service. Price can be determined by reviewing spreads at a number of brokers. Bear in mind that spreads can be fixed or variable depending on the broker and the particular business model they use. Variable does not neccesarily mean wider or more expensive although things can get pricey during periiods of high volatility or prior to a significant economic release or event. The rollover or swap rate for positions held in excess of 3 days is also an important component of price if you intend to hold long term trades, if the broker does (or does not) charge them. In evaluating " price" as well as quality consider " slippage". Are your trades executed at price you ordered or are you a fraction or two removed from your expected entry or exit point. Over the long run this can be costly,especially to scalpers. Quality and service can only be evaluated by experience although opinions of other traders posted on this sight can be helpful. I have dealt with most of the major brokers and I can say the level of sevice and quality is uniformly good in my view. They do vary widely as to price.
Last edited by eyeball; 9th October 2011 at 02:12.
Reason: not complete
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