Rey Nuevo Posted May 10, 2012 Report Share Posted May 10, 2012 The retail forex market is so competitive that just thinking about having to sift through all the available brokers can give you a major headache. Choosing which broker to trade with can be a very overwhelming task especially if you don't know what you should be looking for. In this section, we will discuss the qualities you should look for when picking a broker. 1. Security The first and foremost characteristic that a good broker must have is a high level of security. After all, you're not going to hand over thousands of dollars to a person who simply claims he's legit, right? Fortunately, checking the credibility of a broker isn't very hard. There are regulatory agencies all over the world that separate the trustworthy from the fraudulent. Below is a list of countries with their corresponding regulatory bodies: United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) United Kingdom: Financial Services Authority (FSA) Australia: Australian Securities and Investment Commission (ASIC) Switzerland: Swiss Federal Banking Commission (SFBC) Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN) France: Autorité des Marchés Financiers (AMF) Before even THINKING of putting your money in a broker, make sure that the broker is a member of the regulatory bodies mentioned above. 2. Transaction Cost No matter what kind of trader you are, like it or not, you will always be subject to transaction costs. Every single time you enter a trade, you will have to pay for either the spread or a commission so it is only natural to look for the most affordable and cheapest rates. Sometimes you may need to sacrifice low transaction for a more reliable broker. Make sure you know if you need tight spreads for your type of trading, and then review your available options. It's all about finding the correct balance between security and low transaction costs. 3. Deposit and Withdrawal Good brokers will allow you to deposit funds and withdraw your earnings hassle-free. Brokers really have no reason to make it hard for you to withdraw your profits because the only reason they hold your funds is to facilitate trading. Your broker only holds your money to make trading easier so there is no reason for you to have a hard time getting the profits you have earned. Your broker should make sure that the withdrawal process is speedy and smooth. Advertisement 4. Trading Platform In online forex trading, most trading activity happens through the brokers' trading platform. This means that the trading platform of your broker must be user-friendly and stable. When looking for a broker, always check what its trading platform has to offer. Does it offer free news feed? How about easy-to-use technical and charting tools? Does it present you with all the information you will need to trade properly? 5. Execution It is mandatory that your broker fill you in the best possible price for your orders. Under normal market conditions (e.g. normal liquidity, no important news releases or surprise events), there really is no reason for your broker to not fill you at, or very close to, the market price you see when you click the "buy" or "sell" button. For example, assuming you have a stable internet connection, if you click "buy" EUR/USD for 1.3000, you should get filled at that price or within micro-pips of it. The speed at which your orders get filled is very important, especially if you're a scalper. A few pips difference in price can make that much harder on you to win that trade. 6. Customer Service Brokers aren't perfect, and therefore you must pick a broker that you could easily contact when problems arise. The competence of brokers when dealing with account or technical support issues is just as important as their performance on executing trades. Brokers may be kind and helpful during the account opening process, but have terrible "after sales" support. lee.belisar 1 Quote Link to comment Share on other sites More sharing options...
lee.belisar Posted November 7, 2013 Report Share Posted November 7, 2013 Thank you for sharing this. I was glad when I finished reading the article because I realized that I was right in picking up my broker. The one that I selected has all these qualities. I am looking forward to trade well when I go live any time soon. Thanks and I look forward to learn more from you. Quote Link to comment Share on other sites More sharing options...
masepek Posted November 8, 2013 Report Share Posted November 8, 2013 Nice share, fortunately I get my comfortable trade with my broker now, galleass.com, I get instant execution, Deposit/withdrawal processed fast, and the most I like from my broker now is a big deposit bonus that I can use to drawdown. Quote Bonus hunter Link to comment Share on other sites More sharing options...
diana yes Posted November 12, 2013 Report Share Posted November 12, 2013 Hello!That was a nice share and that would be helpful for me.Thanks. Quote '>http://goo.gl/2tXSkLgoes global Link to comment Share on other sites More sharing options...
gerski Posted November 13, 2013 Report Share Posted November 13, 2013 "Brokers aren't perfect, and therefore you must pick a broker that you could easily contact when problems arise. The competence of brokers when dealing with account or technical support issues is just as important as their performance on executing trades. Brokers may be kind and helpful during the account opening process, but have terrible "after sales" support." I like this part of the post and we must really not forget this to consider in picking up our broker.Thank you for posting. Quote http://goo.gl/2aGCAV is my choice! Link to comment Share on other sites More sharing options...
diablo88 Posted November 15, 2013 Report Share Posted November 15, 2013 I only think about payment and spread. Those are what a trader need from a broker, my broker hotforex fulfilled my needs. Quote Link to comment Share on other sites More sharing options...
fxapex Posted November 15, 2013 Report Share Posted November 15, 2013 i think all the points are important for a safe trading......... Quote Link to comment Share on other sites More sharing options...
rrayne2009 Posted November 23, 2013 Report Share Posted November 23, 2013 "Brokers aren't perfect, and therefore you must pick a broker that you could easily contact when problems arise. The competence of brokers when dealing with account or technical support issues is just as important as their performance on executing trades. Brokers may be kind and helpful during the account opening process, but have terrible "after sales" support." I like this part of the post and we must really not forget this to consider in picking up our broker.Thank you for posting. I do agree with you with this one.Choosing a broker with good and prompt costumer service support is indeed very important.You need your queries to be answered right away and actioned right away.:) Quote Link to comment Share on other sites More sharing options...
gerski Posted November 24, 2013 Report Share Posted November 24, 2013 i think all the points are important for a safe trading......... Yes all points of the post are really important to consider in choosing a great broker.This is really another useful and helpful thread. Quote http://goo.gl/2aGCAV is my choice! Link to comment Share on other sites More sharing options...
rrayne2009 Posted November 28, 2013 Report Share Posted November 28, 2013 1. Security The first and foremost characteristic that a good broker must have is a high level of security. Yes,the most important criteria is to look for a regulated broker as it provides security,credibilty,reliability and guarantee. Quote Link to comment Share on other sites More sharing options...
diana yes Posted December 5, 2013 Report Share Posted December 5, 2013 All of those are informative.And yes it is really helpful post for traders. Quote '>http://goo.gl/2tXSkLgoes global Link to comment Share on other sites More sharing options...
graceb Posted December 5, 2013 Report Share Posted December 5, 2013 Yes,the most important criteria is to look for a regulated broker as it provides security,credibilty,reliability and guarantee. I agree for me i really give a high impact as to check my broker if they are regulated or not. Quote The right path towards your goal here Link to comment Share on other sites More sharing options...
diana yes Posted December 10, 2013 Report Share Posted December 10, 2013 I agree for me i really give a high impact as to check my broker if they are regulated or not. Yes for us also to assure that our money are safe. Quote '>http://goo.gl/2tXSkLgoes global Link to comment Share on other sites More sharing options...
vic84 Posted December 10, 2013 Report Share Posted December 10, 2013 these points must be consider to check for the brokers authenticity.... Quote Link to comment Share on other sites More sharing options...
diana yes Posted December 11, 2013 Report Share Posted December 11, 2013 these points must be consider to check for the brokers authenticity.... Yahh thats right. Quote '>http://goo.gl/2tXSkLgoes global Link to comment Share on other sites More sharing options...
Darel37 Posted January 6, 2014 Report Share Posted January 6, 2014 I only think about payment and spread. Those are what a trader need from a broker, my broker hotforex fulfilled my needs. Quote Link to comment Share on other sites More sharing options...
rrayne2009 Posted January 11, 2014 Report Share Posted January 11, 2014 Low spreads, the security of our money, smooth transaction and fast execution are matters that must be considered in choosing a broker. We must be careful in choosing a broker. Do not let us choose a broker that is a scam. We have to test first, before you invest your money. Those you mentioned were all good points to consider when choosing a broker.And choosing your broker is due diligence in your part.You must first conduct a review about them,check their regulation and test their platform through a demo acount. Quote Link to comment Share on other sites More sharing options...
Gad Posted January 13, 2014 Report Share Posted January 13, 2014 why theres no term and condition? is it not important for you? Quote Link to comment Share on other sites More sharing options...
riki143 Posted January 14, 2014 Report Share Posted January 14, 2014 i just add the legality and postal address is clear. Quote http://www.99fortuneforex.tk/ Link to comment Share on other sites More sharing options...
Gad Posted January 15, 2014 Report Share Posted January 15, 2014 so many traders trapped by the rules of the brokers so they can't do withdrawal Quote Link to comment Share on other sites More sharing options...
Gad Posted February 11, 2014 Report Share Posted February 11, 2014 Low spreads, the security of our money, smooth transaction and fast execution are matters that must be considered in choosing a broker. We must be careful in choosing a broker. Do not let us choose a broker that is a scam. We have to test first, before you invest your money. Quote Link to comment Share on other sites More sharing options...
Gad Posted February 12, 2014 Report Share Posted February 12, 2014 so many traders trapped by the rules of the brokers so they can't do withdrawal Quote Link to comment Share on other sites More sharing options...
chin100 Posted March 20, 2014 Report Share Posted March 20, 2014 Great article. I have selected 1LOTSTP forex broker and this broker has all these qualities which mentioned in the article. I am very glad to trade with this broker. Quote Link to comment Share on other sites More sharing options...
TraderWork Posted March 20, 2014 Report Share Posted March 20, 2014 Thank You very much Quote Link to comment Share on other sites More sharing options...
fxapex Posted March 27, 2014 Report Share Posted March 27, 2014 its better to open a demo account with a broker of your choice and then analyse the various aspect of the way the broker deals with you, if its good then go for it. Quote Link to comment Share on other sites More sharing options...
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