Selecting a good broker.....

Discussion in 'Newbie Questions' started by Realtrendfollower, Feb 26, 2016.

  1. These days there is lots of competition between brokers. Enticing newbies with all kinds of bonuses.
    Do not be blinded by these kind of bonuses.
    Some things to look at when selecting a good broker.
    It is good if they are FCA regulated.
    Enquire about their "negative balance policies" - last year we experienced a "black swan" event, some better brokers forgave the trader negative balances, others insisted on them being paid back (you agreed that losses may exceed your initial deposit) A few big names had to close up shop after the "swiss bank fiasco" last year and after that a whole lot mushroomed up again, only to be forced to close their doors again after the next black swan.
    There are other things to take into consideration like spread and commission.
    Do a bit of research first. forexpeacearmy dot com has reviews on almost all brokers.
     
  2. devis77

    devis77 Active Trader

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    Regarding the negative balance I can tell you that my broker Deltastock didn't ask me to cover the negative balance when the Swiss National Bank suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro. I heard they have another subsidiary company regulated by the FCA which is DF Markets. I share the name of the broker because I am really happy that I am not in debt now :)
     
  3. myfxpt

    myfxpt Master Trader

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    Good to see a thread about broker selection. Equally as important as a good trading strategy! As you point out, Realtrendfollower, bonuses can blur the vision just when you need clear vision the most. Forget bonuses. Ask: Is the broker regulated by a credible regulatory authority? Are client funds segregated and held in trust accounts with reputable banking institutions, and are those banks local or offshore? What do clients say about the broker at Earn Forex, Forex Peace Army, and other client feedback and rating sites? And yes, the "negative balance policy" must be fully understand, which means you do actually need to read the brokers' trading terms and conditions!

    As both Realtrendfollower and devis77 highlight, and I can attest to having suffered a $1,400 loss the day the Swiss decided to re-float the Franc, even big name brokers can go down, so be careful who you get in bed with! Only when these core questions have been answered positively should you move on to things like spreads and commissions, bonuses, payment methods, platforms, and so on.
     
  4. milornld

    milornld Trader

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    Before choosing any Forex broker,check these tips

    - Check Full Account Details and Trading Platform
    - Currency Pairs Offered
    - Customer Service
    - Check the provide high level of security
    - Transaction Costs
    - Deposit and Withdrawal
    - User Reviews
    - Trading Features and Specifications
    - Forex Bonuses and Promotions
     
  5. harryfibo

    harryfibo Newbie

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    I have been asking about the $100 no deposit bonus from Forexchief. I am trading with the broker now and all seems well. My question now is: are all brokers that offer bonuses bad? How do I know which broker segregates client fund?

    If client accounts are segregated, does that mean traders will get their money back if broker folds up? I have not read about any scenario where traders got money back.
     
  6. Tyler1

    Tyler1 Newbie

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    Anyway a good broker turn to bad behaviour to me?
     
  7. Eddie Igr

    Eddie Igr Newbie

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    They have a subsidiary under a different name? Did you check both company names?
     
  8. DT77

    DT77 Newbie

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    Just do your homework and make sure the one you choose comes recomended from someone you know. Stay away from ones offering bonuses etc...
     
  9. igor707

    igor707 Newbie

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    Doing some own research is required while broker selection and bonuses may not be the aspects while considering brokers.
     
  10. interesting thread as Im a newbie and a bit worried about choosing a broker :( dont wanna get burnt
     
  11. Zack King

    Zack King Trader

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    agreed. i was always told to stay away from deposit bonus offering brokers. if it seems too good to be true, usually is..
     
  12. Uaredaty

    Uaredaty Trader

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    Broker research and check needs to be done as there are few brokers that are scam and some brokers that will not be able to fully support your strategy. Start with list of legitimate brokers and then go through terms and conditions of service and services offered
     
    Zack King likes this.
  13. ScottCarsonMVP

    ScottCarsonMVP Newbie

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    A decent tick list here! User reviews are paramount
     
  14. ScottCarsonMVP

    ScottCarsonMVP Newbie

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    Totally agree her Zack
     
    Zack King likes this.
  15. Zack King

    Zack King Trader

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    the best thing i can say is do your own research, check out the reviews on forums etc before signing up and ALWAYS trade with their demo for a few months prior to committing to a live account
     
  16. Zack King

    Zack King Trader

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    awesome checklist- everyone should deffo follow that.
     
  17. Zack King

    Zack King Trader

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    yes this and also check reviews on review sites. but take this with a pinch of salt cos all brokers seem to have both positive and negative reviews- make your own judgement as to what trading conditions are good for YOU.
     
    Helloyees likes this.
  18. some good advice on this thread. thanks guys!
     
    Zack King likes this.
  19. Helloyees

    Helloyees Trader

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    You should be carefull with bonuses and promotions, sometimes they are so big in requirements that you really need to be very successfull in order to make that payout to get them. And you maybe even in loose after you got that bonuses;) So keep in mind.
     
    Zack King likes this.
  20. Zack King

    Zack King Trader

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    i agree here ENTIRELY. stay away from deposit bonus brokers... i have used them many years ago when i was anew trader and lets just say, it never ended well. they make the terms and conditions so tight that it is almost impossible to withdraw any profits made, because it is hard to even reach the goal profit they expect anyway. stay away, and stick with an ECN broker.
     

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