How to Choose the best Broker ?

Discussion in 'Newbie Questions' started by Mohsin Rasheed, Nov 21, 2016.

  1. James Hallow

    James Hallow Newbie

    13
    0
    1
    There are so many different choices in there; it becomes difficult for newbie’s to choose a broker. There is a probability that new traders have no idea on where to start from. Well, to choose a best broker you need to follow three simple steps to help you find a forex broker that you think would suit your needs.

    Check 1. Do your complete research

    Before actually making your comparison analysis, it is very important to do your research on the broker with following steps:

    1. Find out if the broker is regulated. Also, find that if the broker has any regulation with USA or UK. Check to see if the broker choice is with NFA or CFTC based in USA or the broker choice is with FCA based in UK.

    2. Find out if the broker owns a dealing desk or it is a no dealing desk broker. Also, find out if the broker with no dealing desk what is the type of spreads that it offers. Fixed or floating spreads. If the trading conditions are good & suitable for you own trading style.

    3. What is the leverage that is offered by your broker? If it offers very high leverage, it can be quite risky for you. However, if the leverage is low, it may not useful for a newbie.

    4. Knowing your risks. If you know your risk amount, then you can start trading with the capital that allows the minimum affordable risk that you possess. However, if you want, you need to find that broker allows you to trade in micro lots to avoid huge losses.

    5. Swap charges if there are any. Do check if the swap charges are being charged on daily basis or if your broker credit or debit them.

    6. What are the premium services offered by the broker i.e. charting tools, news feeds and the market commentary and how would it help you?

    Check 2. Make a comparison analysis between the various brokers and also check for the broker comparison guide made by the different online websites.

    Check 3. Open demo accounts & check your suitable trading style

    Pick minimum of two or three brokers that fits best for your trading criteria & open demo accounts. Trade in dissimilar market environments. Learn all the features of any trading platforms. If you have any questions, don’t be afraid to question. If the broker posses a good customer support, they would be happy to answer your questions.

    Most of the demo platforms are typically similar to the live counterparts and not the same. There can be only difference of trading conditions like speed, slippage and platform reliability (most of the live accounts are usually more dependable than demo accounts). When you have a strategy and you are prepared to move it to live account, start with a small amount and test it and also see if the broker would suit your trading needs.
     
  2. BridgettMendoza

    BridgettMendoza Trader

    6
    1
    14
    Choose a well regulated broker and make sure it covers negative balance protection if you trade in higher leverage.

    Check the swap rates beside spread. Choose FCA from UK or CySEC if you are from Asia. Prior your trading instruments as I choose hanseatic broker because I trade cFD as well as regular FX and they have larger collections of both instruments.

    Check your broker don’t offer higher leverage most broker offer higher leverage is not good broker. They often lower the leverage to ahead of any hot events like brexit, US elections etc and force you to close your losses. So, choose more stable broker. FCA, CySEC is forcing brokers to cap the leverage lower.
     
    bargain likes this.
  3. Alexfx79

    Alexfx79 Active Trader

    376
    20
    39
    Sorry to interrupt, but I've met a story on forexpeacearmy about that company. Some trader said they scammed him... It happened some time ago and I won't state that it is true as I haven't read the outcome. But I'd be careful with such ones (=founded in 2016)
     
  4. bomcubugtga

    bomcubugtga Newbie

    3
    2
    3
    Can you recommend any good broker to not fear for their earned money safely and withdraw them. Can from personal experience. Thank you.
     
    bargain and Nickole like this.
  5. Enivid

    Enivid Administrator Staff Member

    8,973
    318
    114
    I recommend EXNESS.
     
    bomcubugtga and Nickole like this.
  6. bomcubugtga

    bomcubugtga Newbie

    3
    2
    3
    Do not trust this broker because quite a lot of bad reviews, there is good....but still. There are brokers who are pretty long in the Forex market. With whom you have traded.
     
  7. Enivid

    Enivid Administrator Staff Member

    8,973
    318
    114
    That's actually a broker who is pretty long in the Forex market and with whom I have traded quite a lot.
     
    bargain likes this.
  8. Hafid

    Hafid Trader

    14
    6
    19
    I am a newbie and when I chose a broker I relied on this three points: regulation of broker, responsive support and big leverage, to be able to trade with small deposits...
     
  9. bargain

    bargain Newbie

    3
    0
    1
    How important is regulation when you are choosing forex broker? And what that regulation means to me as a trader?
     
  10. Alexfx79

    Alexfx79 Active Trader

    376
    20
    39
    You can complain to someone in case your broker scams you and there would be a hope for getting your money back
    If a company is unregulated, it can easily disappear with your funds
     
    myfxpt and bargain like this.
  11. FoxyFoxy

    FoxyFoxy Newbie

    24
    2
    2
    Regulation is essential. Otherwise you are just giving you money to a faceless unknown company that has no obligation to give it back
     
    bargain and Alexfx79 like this.
  12. bargain

    bargain Newbie

    3
    0
    1
    Thank you both for answers, it helps me a lot to understand the whole thing about safe forex trading.
     
  13. xerof

    xerof Trader

    85
    5
    14
    For me the most important is cheap trading, and rebate without any additional conditions.
     
  14. Abdul Fani

    Abdul Fani Trader

    15
    4
    9
    Fist of all, the broker should be reliable and regulated.
    The best way to know, that a broker is reliable is to check its license. They say, that the most reliable brokers have licenses from Europe, USA and Australia. For example, licenses from Cyprus, Malta, United Kingdom, Switzerland, Latvia, Estonia, Czech Republic, New Zealand are concidered as the most difficult obtain and they have the most strict regulation. Also, there are brokers with licenses from Panama, Hong Kong, Mauritius, Belize, Seychelles. They say, that it`s easier to get such license, but it doesn`t really means, that they are poorly regulated.
    Sometimes, people consciously choose brokers with less strict regulation, as they usually have more profitable trading conditions. You can find information about licence on brokers` sites or write to support and ask. As for me, I trade with broker with Belieze licence and I`m satisfied with the servise, I never had problems with withdrawal. Also, I`d recomend to choose old broker (more, than 4-5 years on market).
    As for me, I tried Alpari, InstaForex and now trade with JustForex. All these brokers are reliable, but I like JustForex`s trading conditions the most. Good conditions for scalpers on ECN account.
     
  15. Enivid

    Enivid Administrator Staff Member

    8,973
    318
    114
    Actually, it does really mean that. Out of the countries that you listed here, only Hong Kong does good job at regulating the industry. The other listed ones perform little oversight of the broker's activity at all.
     
  16. benralectri

    benralectri Trader

    5
    0
    7
    Large brokers, usually, are good)
    They became large, because they are good)
    Known, advertised, praised as a rule - not very good, because they advertise themselves.
    Good - does not need advertising.
    Giants such as "FXCM", "Gain", "IG", "OANDA", "eToro" etc should be good.

    The main thing in choosing a broker is its terms and client agreement.
    Read the documents and conditions for which you agree)
    The regulator and the law will not help you if you agree to the conditions of the trap.
     
  17. Abdul Fani

    Abdul Fani Trader

    15
    4
    9
    I agree, that it is the most safe way - to choose large broker. But there are smaller brokers, that try to break through among competitors. And they do it by proposing more beneficial trading conditions. Trading with such broker may be more profitable. But, of course, you should choose it carefully.
     
  18. HFStrader

    HFStrader Trader

    33
    14
    24
    You Can Use Best Forex Broker Choose Giude Line. You Search in google and Read this guide line.
     
  19. SweetPrincess

    SweetPrincess Trader

    117
    14
    24
    Hi, I am glad that you are asking on how to choose a broker.. You know some newbies neglect it. It is equally important that your expertise level and trading goals match the details of the offer made by the broker. You can also refer to broker reviews in order to find a reliable broker that suites your trading style.
     
  20. Kuznec

    Kuznec Trader

    11
    1
    9
    It's not a fact that they became the largest brokers, because they are so good. Quite possibly this is just a good PR, and a large advertising budget.
     

Share This Page