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  1. #1
    johnstarks is offline Member
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    Apr 2012
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    Default How to Choose a Forex Broker

    How to Choose a Forex Broker

    With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr!

    In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to.

    With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin...
    Step 1: Do your research

    Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:

    Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.
    Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.
    How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer"before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie
    Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.
    Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight.
    Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

    Step 2: Compare brokers

    Let's not beat around the bush, now you need go to Broker Comparison Guide.
    Step 3: Open demo accounts and ask questions.

    Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.

    Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.

  2. #2
    won
    won is offline Banned
    Join Date
    Jun 2013
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    180

    Default

    Quote Originally Posted by johnstarks View Post
    How to Choose a Forex Broker

    With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr!

    In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to.

    With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin...
    Step 1: Do your research

    Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:

    Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.
    Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.
    How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer"before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie
    Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.
    Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight.
    Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

    Step 2: Compare brokers

    Let's not beat around the bush, now you need go to Broker Comparison Guide.
    Step 3: Open demo accounts and ask questions.

    Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.

    Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.
    I have noticed what you are trying to say in the last paragraph with the broker am with Profiforex. The speed of their demo is kind of similar to that of real account.

  3. #3
    seekforex is offline Senior Member
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    389

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    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?



    http://www.forex-metal.com/affiliate/46199/2

  4. #4
    gaban is offline Banned
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    we can look for information about forex broker through discussion forums. Usually a good broker is a broker that provides the best service for the tradernya. so that makes us more comfortable in trading in the broker. More and more traders are investing in a broker, then the broker must have a good quality. we can try to prove it through a demo account. Here will be seen how the quality of a broker.

  5. #5
    won
    won is offline Banned
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    Quote Originally Posted by seekforex View Post
    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?



    http://www.forex-metal.com/affiliate/46199/2
    I would agree with you to a point, and this is one reason most of us go for regulated brokers. But I would also say that it is not when a broker is regulated that ensures 100% security, this regulation stuff is just to limit our fears, but doesn't guarantee good services. Like my broker I mentioned above, though regulated by SIBA, this wasn't what i considered when choosing them. But their good reputation for work.

  6. #6
    uncle gober is offline Banned
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    Broker are suitable for us, make us feel comfort when trading with their services so we can focus on our trading and get maximal result. I choose broker with tight spreads and fast execution, and my withdrawal and deposit processed without any problems, and i get it in Armada Markets.

  7. #7
    gaban is offline Banned
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    I also do the same. For me the ideal broker is a broker that can provide comfort for traders. I've found comfort in instaforex. I choose a broker who is a broker that provides low spreads, has a great rebate, as I get in instaforex.

  8. #8
    kaito kid is offline Banned
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    in my opinion, a good broker is a broker who remain steadfast and continue to hold the promise of improving the quality of service to traders. such as execution speed, fast payment, security money is deposited, have many methods of payment, welcome bonuses and other promotions. during this time, I always get the benefit for joining the FBS

  9. #9
    gaban is offline Banned
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    Quote Originally Posted by kaito kid View Post
    in my opinion, a good broker is a broker who remain steadfast and continue to hold the promise of improving the quality of service to traders. such as execution speed, fast payment, security money is deposited, have many methods of payment, welcome bonuses and other promotions. during this time, I always get the benefit for joining the FBS
    exactly once, a good broker is a broker who remains steadfast promise. not only sell false promises. All services provided are highly qualified. And I can find it in instaforex. In this broker, I could trade without spreads, trading account without swap, etc..

  10. #10
    frienndforever is offline Senior Member
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    Collecting from google, forex rating sites and forex forums. Especially from popular websites. Then refer some feedbacks, both good and bad, how did they make it. That's the way I found out my broker, HotForex and I'm satisfied with my choice.

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