HOW TO CHOOSE A GOOD BROKER?
forex_trader_376978
Nov 16, 2016 zamanından beri üye
1 iletiler
Jan 22, 2017 at 07:50
Noting the number of problems there ....
Can anyone give a basis for choosing a broker, and that no one is based solely on marketing?
I would love it, but I do not know either ... I watch a lot and investigate, just that. I see if it is regulated, and I look for opinions.
Greetings, thank you!
Can anyone give a basis for choosing a broker, and that no one is based solely on marketing?
I would love it, but I do not know either ... I watch a lot and investigate, just that. I see if it is regulated, and I look for opinions.
Greetings, thank you!
Feb 12, 2016 zamanından beri üye
427 iletiler
Jan 23, 2017 at 15:34
What I learned so far is that you should probably use some local to you broker. This way it will be easy for you to contact them and resolve any issues and concerns that you may have. Be careful because if you start with bad broker – you will lose part of your faith in the whole system. And that is not the point. Read a lot, use a demo account (if there is an option), test the broker and then you are good to go. Hope that will help 😄
Accept the loss as experience
Jan 30, 2017 zamanından beri üye
12 iletiler
Jan 31, 2017 at 13:33
In my 2 years of experience, I would say choose a broker who facilitates good customer support system with right offerings. If you are opting for a broker with extraordinary offerings, you would end up getting betrayed. Choose your broker wisely, make your analysis with patience & try all the brokers that you find reliable in respect to regulations, funds security, account types, deposit requirements and support system. If you find any unfavorable it’s and bits, investigate & then check people’s opinions.
Sep 20, 2014 zamanından beri üye
365 iletiler
Jan 31, 2017 at 14:15
In order of priority:
1. Minimum trade sizes
2. Over night costs
3. Spread
And finally check if they have frozen other peoples trading accounts. Frozen accounts is a bucket shop trick. If you don't want the client send his money back, bucket shops declare disputes and simply keeps the cash.
1. Minimum trade sizes
2. Over night costs
3. Spread
And finally check if they have frozen other peoples trading accounts. Frozen accounts is a bucket shop trick. If you don't want the client send his money back, bucket shops declare disputes and simply keeps the cash.
Feb 22, 2011 zamanından beri üye
4862 iletiler
Jan 31, 2017 at 15:17
marcial3 posted:
Noting the number of problems there ....
Can anyone give a basis for choosing a broker, and that no one is based solely on marketing?
I would love it, but I do not know either ... I watch a lot and investigate, just that. I see if it is regulated, and I look for opinions.
Greetings, thank you!
@marcial3
Rule number 1 ! Always read reviews on FPA
Rule number 2 test the conditions and withdrawal with smaller accoount first
May 04, 2012 zamanından beri üye
1608 iletiler
Jan 31, 2017 at 15:57
After all due diligence go with an FCA regulated broker. Why?
Simply because of the 50,000 GBP FSCS insurance which comes automatically with the FCA regulation, should the broker take off with ALL segregated clients funds on a nice sunny day and go for a life-long luxury vacation on an exotic island.
(FPA is full of such sad horror stories and I was also a victim of such a broker, although he is not vacationing anywhere, but waiting for his court trial in Toronto...)
Simply because of the 50,000 GBP FSCS insurance which comes automatically with the FCA regulation, should the broker take off with ALL segregated clients funds on a nice sunny day and go for a life-long luxury vacation on an exotic island.
(FPA is full of such sad horror stories and I was also a victim of such a broker, although he is not vacationing anywhere, but waiting for his court trial in Toronto...)
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Sep 20, 2014 zamanından beri üye
365 iletiler
Jan 31, 2017 at 17:03
@FxMasterGuru
That insurance means nothing. I can't really remember the details, it's too long ago and I would have to spend the time to find the details. Just not worth it for me to do that for yet another internet argument with a stranger, but I did make a mental note at the time not to worry about insurances.
I think it was Anne Barnard actually, the consequences were in the 2008 failure of MF Global. Basically the insurances were waived, client accounts frozen for months, 30% change in copper value, clients unable to trade and one of the biggest futures hedge funds closed it's doors because they couldn't guarantee client funds due to the exchange not honouring their insurances. Fed's were involved. Clients were hung out to dry.
If it is crunch time the insurances means nothing. Government will simply change the rules.
That's like nr 0 of the things I worry about in a broker.
That insurance means nothing. I can't really remember the details, it's too long ago and I would have to spend the time to find the details. Just not worth it for me to do that for yet another internet argument with a stranger, but I did make a mental note at the time not to worry about insurances.
I think it was Anne Barnard actually, the consequences were in the 2008 failure of MF Global. Basically the insurances were waived, client accounts frozen for months, 30% change in copper value, clients unable to trade and one of the biggest futures hedge funds closed it's doors because they couldn't guarantee client funds due to the exchange not honouring their insurances. Fed's were involved. Clients were hung out to dry.
If it is crunch time the insurances means nothing. Government will simply change the rules.
That's like nr 0 of the things I worry about in a broker.
May 04, 2012 zamanından beri üye
1608 iletiler
Jan 31, 2017 at 17:37
(Jan 31, 2017 at 17:38 düzenlendi)
@theHand
Well, FSCS DID PAY innocent clients after the SNB announcement related CHF flash crash, e.g. victims of Alpari UK:
https://www.financemagnates.com/forex/brokers/fscs-distributed-51-3m-alpari-uk-clients-repaid-negative-balances-920k/
So apparently they have NOT changed the rules in 2015 which is a more recent event than the mentioned one in 2008... That is all I can say.
I am not here to argue about it either, but being a REAL victim a ''regulated broker's'' disappearance with $500k+ segregated client funds, FSCS is still better FOR ME than keeping funds at a non-insured broker which can simply ''fall off the Internet'' without a trace...
Well, FSCS DID PAY innocent clients after the SNB announcement related CHF flash crash, e.g. victims of Alpari UK:
https://www.financemagnates.com/forex/brokers/fscs-distributed-51-3m-alpari-uk-clients-repaid-negative-balances-920k/
So apparently they have NOT changed the rules in 2015 which is a more recent event than the mentioned one in 2008... That is all I can say.
I am not here to argue about it either, but being a REAL victim a ''regulated broker's'' disappearance with $500k+ segregated client funds, FSCS is still better FOR ME than keeping funds at a non-insured broker which can simply ''fall off the Internet'' without a trace...
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Sep 20, 2014 zamanından beri üye
365 iletiler
Jan 31, 2017 at 18:13
The clients were in the market with positions ?
They weren't the victims. Alpari got screwed. People should take responsibility for their 'investments'. If you're running at 50:1 on a pegged currency you are simply asking for shit. That should be obvious to anyone with intellect.
So that was political and the government could afford it, it was a small insolvency.
Obviously no one should touch the small 'can fall off the internet' brokers (that means all MT based brokers), I also look at jurisdiction, but I don't bargain on the insurance. That is a really bad reason to choose a broker.
They weren't the victims. Alpari got screwed. People should take responsibility for their 'investments'. If you're running at 50:1 on a pegged currency you are simply asking for shit. That should be obvious to anyone with intellect.
So that was political and the government could afford it, it was a small insolvency.
Obviously no one should touch the small 'can fall off the internet' brokers (that means all MT based brokers), I also look at jurisdiction, but I don't bargain on the insurance. That is a really bad reason to choose a broker.
Sep 20, 2014 zamanından beri üye
365 iletiler
Jan 31, 2017 at 18:16
My first thought actually is what's the tax implications of the brokers jurisdiction.
May 04, 2012 zamanından beri üye
1608 iletiler
Jan 31, 2017 at 18:57
theHand posted:
My first thought actually is what's the tax implications of the brokers jurisdiction.
How different we are... It would be the last thing on my mind...
Trading through an International Business Corporation means 0% corporate taxes... Did I say something new...?
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Sep 20, 2014 zamanından beri üye
365 iletiler
Feb 01, 2017 at 03:11
If you're going to do things legally and set up for the long term in places like Hong Kong and Singapore, the moment you do business there the income becomes taxable.
I've have assets there, so I know. Not making guesses mate and the benefits of a big business jurisdiction by far outweighs any tax dodges I can do in a tax haven, which are on their way out anyway.
Do you actually own a company ? It doesn't look like it.
I've have assets there, so I know. Not making guesses mate and the benefits of a big business jurisdiction by far outweighs any tax dodges I can do in a tax haven, which are on their way out anyway.
Do you actually own a company ? It doesn't look like it.
Jan 31, 2017 zamanından beri üye
10 iletiler
Feb 05, 2017 at 07:35
when I choose a broker, there are certain things I look for including spreads, execution speed, commission charges and if there is any persistent issues of slippage or off-quotes or not. I use their demo accounts first and if feel comfortable, I switch to live.
Feb 02, 2017 zamanından beri üye
1 iletiler
Feb 05, 2017 at 07:50
marcial3 posted:
Noting the number of problems there ....
Can anyone give a basis for choosing a broker, and that no one is based solely on marketing?
I would love it, but I do not know either ... I watch a lot and investigate, just that. I see if it is regulated, and I look for opinions.
Greetings, thank you!
I choose my broker differently. First I check their regulations and trading platform (cross platforms like windows, mac, android, ios).
I prefer MT4 , so I contact live support and make sure they have a server nearest my location. And I prefer those broker has single account types rather than variety of accounts.
And then I focused on Spread and Swap rates for major and non-major pairs, Futures, and others.
I choose smaller firms because they care about me. Big firm like FxPro and Pepperstone has higher spread for cross pairs. FXCM doesn’t allow hedge.
I am trading with Hanseatic broker, I am overall happy though their live support can’t address all of my issues (mostly server related) and I had to email their support.
Feb 04, 2017 zamanından beri üye
40 iletiler
Feb 09, 2017 at 08:02
Well said. Spreads, Swap, slippage during high volatility events are important. And I do use ‘Hanseatic Broker’
Yes, sometimes their live support delay couple of minutes if I remain in a que, but trust me I had more bad experience with other big brokers!
Yes, sometimes their live support delay couple of minutes if I remain in a que, but trust me I had more bad experience with other big brokers!
Helping new traders
Dec 11, 2015 zamanından beri üye
1487 iletiler
Feb 17, 2017 at 12:41
Find a broker the terms and conditions of which fit your trading style. If you scalp, find a broker that allows scalping. Look into leverage, customer service, money withdrawal process, slippage, execution speed, commissions, etc. Keep in mind that a lot of European brokers are lowering (or will lower) their leverage to 1:50 or even 1:25 and are removing trading bonuses due to new regulations by CySEC and the FCA (https://www.forexbrokerz.com/news/fca-capping-leverage-uk-forex-brokers) so you should probably take that into consideration as well.
Feb 22, 2011 zamanından beri üye
4862 iletiler
Feb 17, 2017 at 13:45
mlawson71 posted:
Find a broker the terms and conditions of which fit your trading style. If you scalp, find a broker that allows scalping. Look into leverage, customer service, money withdrawal process, slippage, execution speed, commissions, etc. Keep in mind that a lot of European brokers are lowering (or will lower) their leverage to 1:50 or even 1:25 and are removing trading bonuses due to new regulations by CySEC and the FCA (https://www.forexbrokerz.com/news/fca-capping-leverage-uk-forex-brokers) so you should probably take that into consideration as well.
lets hope this leverage limit will remain just for new inexperienced traders
Feb 14, 2017 zamanından beri üye
24 iletiler
Feb 19, 2017 at 07:43
1. Make sure they are well regulated - FCA, ASIC best regulators.
2. Make sure execution is good (no delays in trade execution or too wide spreads in comparison to other brokers).
3. Check with forexpeacearmy.com or here for the reviews on the broker.
4. Check with the regulators or google search complaints to see if the company has faced any complaints or fines.
5. Don't trust ones with large deposit bonus' available, if you do happen to use them use them without their deposit bonus scheme.
6. Finally, check with a small amount of capital check their depositing and withdrawing times to make sure they are smooth in both their transactions, this will also allow you to check how their platform performs with real money.
2. Make sure execution is good (no delays in trade execution or too wide spreads in comparison to other brokers).
3. Check with forexpeacearmy.com or here for the reviews on the broker.
4. Check with the regulators or google search complaints to see if the company has faced any complaints or fines.
5. Don't trust ones with large deposit bonus' available, if you do happen to use them use them without their deposit bonus scheme.
6. Finally, check with a small amount of capital check their depositing and withdrawing times to make sure they are smooth in both their transactions, this will also allow you to check how their platform performs with real money.
Dec 11, 2015 zamanından beri üye
1487 iletiler
Feb 20, 2017 at 11:45
(Feb 20, 2017 at 11:46 düzenlendi)
togr posted:
lets hope this leverage limit will remain just for new inexperienced traders
I agree. However, I am not sure what their definition is for an “inexperienced trader”. Less than one year of experience? More?
That said, it could be worse. Turkey also recently decided to crack down on Forex brokers and introduced new rules – 1:10 leverage for all traders and a shocking, if you ask me, $13,500 (TRY 50K) minimum deposit without which a trader can’t even open new positions. (https://smnweekly.com/2017/02/10/turkey-restricts-retail-leveraged-forex-trading-to-clients-with-50k-deposit-cuts-leverage-to-max-501/) Their they had mandated 100:1 leverage before that.
Feb 22, 2011 zamanından beri üye
4862 iletiler
Feb 20, 2017 at 11:55
mlawson71 posted:togr posted:
lets hope this leverage limit will remain just for new inexperienced traders
I agree. However, I am not sure what their definition is for an “inexperienced trader”. Less than one year of experience? More?
That said, it could be worse. Turkey also recently decided to crack down on Forex brokers and introduced new rules – 1:10 leverage for all traders and a shocking, if you ask me, $13,500 (TRY 50K) minimum deposit without which a trader can’t even open new positions. (https://smnweekly.com/2017/02/10/turkey-restricts-retail-leveraged-forex-trading-to-clients-with-50k-deposit-cuts-leverage-to-max-501/) Their leverage used to be 100:1 before that.
What about old good Australian brokers?
