how to choose the right forex broker ?

Discussion in 'Forex Brokers' started by mohmed-tarek, Dec 3, 2013.

  1. mohmed-tarek

    mohmed-tarek Trader

    46
    1
    22
    There is one way why the Forex market is similar to other Stock Market – because it makes you to enter trades through a broker. However, very few forex brokers are compared with other several stockbrokers.
    You cannot trade in forex market easily using the facility of E-Trade, Fidelity, etc. You must take help of a broker who only specializes in the forex market.
    Although, a limited number of forex brokers are available, but still you need the best forex broker, because there is a differences in specialties.
    Some brokers specialize in mini-account; some require several thousand dollars to open an account; others fall somewhere in between. According to your investment and portfolio size, several key factors need to be determined while selecting a right broker.
    To work with a company is an ideal solution that offers you a variety of trading systems and negotiable rates (interest and spreads) that you do not have too run around.
    Factors to Consider While Selecting a Broker
    1. Interest rates – Some brokers might pay interests daily on the funds leveraged, in addition to earn money through forex market.
    2. Trading Platform – The key to select right trading software or platform is finding one that is friendly user. The worst thing that happens is that, when you try to execute a trade on a system that you cannot figure out.
    3. Spread Rates – This is how the brokers make their money; it is like commission costs involved with stock trading. You choose a broker that has cost effective spread rates.
    4. Leverage Available – Leverage as well, is a negotiated item. Most brokers will provide an leverage of 100:1, but to get a leverage of 200:1, you have to use a premier broker.
    5. Account Size– Once you decide how much you wish to invest, you pick a broker who is a specialist in that area. Normally there are brokers who specialize in mini-accounts (as little as $100 to start), traditional accounts, and mega accounts.
    6. Lot Size– The lot size is the number or currency units, a broker normally trades in 1k or 10k lots. This becomes important because you want to take full advantage of your currency units based on how much you have to spend.
    7. Demo Account– Most brokers have demo accounts, through which you can practice trading. Make sure that you take advantage of this, so that you can experience forex trading with fake money in place of real money.
    You can see that, there is a lot to consider besides just picking a company that will take your money and allow you to access trading in the FX market.
    That is why, it is better to work with a brokerage firm that has already negotiated interest rates, leverage availability etc.
    That is way; you have a better chance of success, and no need to waste your time for that work which is already done for you.
    Therefore, do what thousands of other successful investors do, and surround yourself with the right tools, so that you will already be off to a good start.
    go and check by your self the right points that you have to consider before choose your forex broker
     
    SymphonyTrading likes this.
  2. ForexIndicators

    ForexIndicators Trader

    2
    0
    17
    Hey, such a great information shared by you regarding forex broker. Thanks for sharing. Keep it up..:)
     
  3. Agnnis bingamin

    Agnnis bingamin Trader

    66
    1
    17
    It is very important to have right broker and we need to put our money and therefore one must be very much careful while choosing right broker. one must search in deep regarding them in internet, market.
     
    Glastonburyk likes this.
  4. Emibluz

    Emibluz Banned

    165
    0
    27
    Just a little info: Everything that you have said is true. But come to think of it, there are many brokers that offer mini accounts, 1:200 leverage and so-called no commission trading. So, which one will a newbie choose. Well, this boils down to using our intelligence. When a broker says "No commission for trading", just know that the broker has devised another means to take money from you. Be very careful in with such brokers as they have hidden charges. I can tell you that Brokers under the FCT, ASIC... are very good at doing this. I do not know if the fact that they are regulated has taken some of their means to make money, which explains why many of them have many hidden charges. Just look at all their trading agreement and you'll see what I am talking about. It scares me.
     
  5. lee.belisar

    lee.belisar Confirmed Gdmfx Representative

    42
    0
    22
    It is indeed very crucial to pick the right broker for any trader. And you are right, there are several factors to consider in selecting a good Forex broker. These include lot size, leverage, trading platform, spread rates and the likes. And to add up, reputation and legality are also big consideration. And I am proud to say that I already find mine. I hope others find theirs too.
     
  6. Agnnis bingamin

    Agnnis bingamin Trader

    66
    1
    17
    It is very important to have right broker as we need to have profit and not losses. so to have right broker we must investigate regarding their legality, reputation in the market, and advance facility provided by them.
     
  7. gerski

    gerski Trader

    48
    0
    17
    Right those factors that you had just mentioned is just provided by my chosen broker and actually i give a weight on the legality factor since we are talking about investment of our money.Finding a right broker is really important to be considered when entering forex and that newbies should take that in mind.
     
  8. Rambo35

    Rambo35 Confirmed PaxForex Representative

    909
    13
    32
    The only thing which makes sense in this post is mentioning spread. All the other things are essentially very basic and similar. What matters most is that you do your due diligence about your broker. Execution of your trades is important.
     
  9. rrayne20009

    rrayne20009 Trader

    57
    2
    17
    A good customer service.Forex occurs 24 hours daily.A broker's customer service should be available at anytime to answer our queries.
     
  10. David Train

    David Train Trader

    33
    2
    17
    For me the most important are:
    1) reliabillity of the broker
    2) withdrawal
    3) trading conditions
    4) customer service. (I think that people of a company are the face of a company. When you contact CS of a broker and there is no polite and professional reply there can be nothing good about a broker)
    5) bonuses and promotions and contests (This is not the main, but yet very pleasant addition)
     
  11. Richarddawson

    Richarddawson Newbie

    1
    0
    1
    A few important ones are as follows:
    • Reputation
    • Deposits and Withdrawals
    • Spreads
    • Margin
    • Trading Platform
    • Currencies and Other Markets Offered
    • Customer Service
     
    Last edited by a moderator: Apr 5, 2018
  12. JohnyIve

    JohnyIve Trader

    63
    10
    14
    Don't forget about regulation systems. It's really necessary when you have some conflicts with CS or private manager or if your withdrawals blocked.
     
    abi211gail likes this.
  13. Nicolas Sanz

    Nicolas Sanz Trader

    32
    5
    19
    All is said correctly. But full trust to the broker appears only after cooperation with him. Before this, you can look at the simplicity of broker information, regulation, withdrawal and deposit processes.
     
  14. jellyeb

    jellyeb Active Trader

    248
    11
    29
    Yeah first impression gives nothing. Broker shows its true colors in hard market times like increasing volatility or low liquidity
     
  15. Ary Barroso

    Ary Barroso Active Trader

    825
    48
    39
    That’s the reality; actually major financial events are crucial in this case; market maker brokers increase the spread number & create lots of technical error like, freezing the chart, spike etc.
     
  16. milornld

    milornld Trader

    41
    1
    17
    Hey I have 4 years of experience in trading and here I am sharing few more points

    - Trading Platform
    - Reputation
    - Customer Service
    - Account Types
    - Data Security
    - Trading Style
    - Deposit and Withdrawal Mechanism
    - Spreads, Commissions, and Fees for Broker
     
  17. Ary Barroso

    Ary Barroso Active Trader

    825
    48
    39
    Honestly; I have no idea how new traders can rely on unregulated FX broker when the unregulated brokers are mainly the scammers! Transparency is the key; so no way a unregulated broker!
     
    abi211gail likes this.
  18. hakuna matata

    hakuna matata Newbie

    21
    4
    4
    While looking for a broker you should be considering brokers offering high leverage , low commissions, tight spreads, easy deposit and withdrawal facilities etc. Another important thing to consider are the trading platforms they are providing because they can affect your profits directly. As far as the type of broker is concerned, I would say ECN brokers are better than other brokers.You can also read reviews about the broker on various websites as customers are the best people who can share their experience about the brokers.
     
  19. Glastonburyk

    Glastonburyk Trader

    41
    11
    14
    Yes buddybits esential you chose what’s right for you
     
  20. Callum Richards

    Callum Richards Trader

    40
    6
    9
    1. Spreads
    2. Exection & liquidity
    3. Withdrawal speed
    4. Funding Options
    5. Customer service.

    All my points I consider
     

Share This Page