How to examine a broker?

[oleg2009]

Successful use of scalping is directly depending on your broker. Experienced traders choose brokers very carefully with consideration of many factors.

The first factor, is the spread on the traded currency pair . Most of the brokers give the information about spreads on traded currencies on their websites, but I would recommend to check the spread before you start the trade. I would check the spread on a real account ( you have to open real account, but you can quickly close it and therefore check how quickly you can withdraw money).

Also, if your broker is ECN, check all the commissions in order to make sure that a broker won’t “eat” all your profit.

Than I recommend to check the execution speed. In order to do this you have to place your advisor to trade with minimum lot and estimate the time interval between the starting time of sending order and it’s ending time. Go to the folder of log files C:\Program Files \metaTrader\logs\ and look on the log file.

Example :
00:56:26 '1003718': order sell market 0.20 USDJPY sl: 0.000 tp: 0.000
00:56:27 '1003718': request was accepted by server
00:56:27 '1003718': request in process
00:56:27 '1003718': order was opened : #1635944 sell 0.20 USDJPY at 91.180 sl: 0.000 tp: 0.000

We can see that advisor made it’s request for opening 00:56:26 and order was opened at 00:56:27 – good work.


You have to also analyze all the tweaks around a particular order. It will help you to discover manual intervention. Broker can “throw” quotation in the stream of quotations in order to beat your “stoploss” or to give you maximum worst price. That’s why exploring of teaks will make everything clear. Analyze 10-20 orders.

In the future, when you will pick a broker and start the state, I would recommend you to analyze every order.

So analyzing of spreads ,speed and teaks around a order, will give you the full understanding of your broker. I recommend www.MT4.ca – this is Canadian partner FXOPEN picked by me for the scalping. The only disadvantage of it is that the broker is not registered in NFA, even though most of USA brokers transfer their clients to other jurisdictions to escape NFA regulation

[wakacyjna]

Thanks. That is very helpful.

[tomo1]

scalping is possible with ECN brokers

[tomo1]

hey guies try FXopen nice broker, ECN & metatrader-I closed some nice transactions . Short USD!

[maxcuneo]

A smart broker can really give you that extra edge you need in order to be successful in the Forex market. Many forex traders increase their potential for profit by engaging in leverage. This is where they borrow from their forex broker to increase the amount they’re trading. This method of trading also exposes a trader to a higher potential loss.
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Forex Trading Platform

[Camilla]

Also always take a closer look on the way customer service works. Call them, ask them questions, and make conclusions. Most relaible brokers have 24 hours phone support.

[jason]

You can choose a Forex Broker while keeping the following things in mind:
Initial Deposit : You should look for a forex broker that has a low initial deposit.

Regulation : The forex market is an unregulated market meaning there is no central exchange. However, forex brokers themselves are regulated. In the US they should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission(CTFC) and a member of the National Futures Association(NFA). You can verify a broker’s status with the NFA on the NFA web site. If you do not find the broker you are interested in listed with the NFA, look for another broker that is listed and has a clean record.

Customer Service: It is important to find a broker with 24 hour customer service. The forex markets can be wild at times. If you had a question about order execution or a closed order, you should be able to get your question answered no matter what time it is.

Currency Pairs: Find a broker that offers the currency pairs that you are most interested in trading, or at least a good variety to choose from.

Reputation: Always check the reputation of a forex broker. One way is to do a google search with the name of the broker plus the word “complaints”.

[buster]

Choosing a broker is a tough job and need to research its legitimacy here, and in doing so one must get educated to understand Forex more and its complexities. There are lots of good resources out there to help. One of the best I have come across is makemoneycurrencytrading dot co dot uk as they run free webinars and training. And they run live portfolio so you can actually see if their strategies are making profit live. They also send out a daily report each day with the trades.

[robsam]

Originally Posted by buster

Choosing a broker is a tough job and need to research its legitimacy here

I agree with you. Choosing broker is really a tough job but once you get a good broker it may take you to the top. They can give you good ideas and strategies for proper investment and good returns. Having knowledge about market is also must. Take an example of forex trading. It can give you returns only when you have done proper market research and you have some knowledge of currency correlation.

[jason]

When checking out a forex broker, look for these details:

1. Margin provided (usually 1-4%)
2. Their spreads for the currencies you’ll be trading (the EURUSD will usually be 3-4 pips)
3. Amount of funds required to start an account
4. Any fees for small trade sizes (many don’t charge fees for smaller trade sizes, but some do)
5. Any other fees (there will be rollover fees for positions held overnight with any provider, which are usually small, though the details of this fee can vary)
6. Whether the broker automatically closes your position if the position goes against you by the entire value of your account not used as margin for that trade
7. What their charting package and forex trading platform is like
8. Whether the trading platform provide a demo account for you to practice on

[adria]

Jason have given some important points. After you decide which conditions are important for you, you can compare forex brokers online. There is no single best forex broker out there. But it will help you find the one that suits your needs the best.

[sabrinathomas]

Originally Posted by jason

When checking out a forex broker, look for these details:

1. Margin provided (usually 1-4%)
2. Their spreads for the currencies you’ll be trading (the EURUSD will usually be 3-4 pips)
3. Amount of funds required to start an account
4. Any fees for small trade sizes (many don’t charge fees for smaller trade sizes, but some do)
5. Any other fees (there will be rollover fees for positions held overnight with any provider, which are usually small, though the details of this fee can vary)
6. Whether the broker automatically closes your position if the position goes against you by the entire value of your account not used as margin for that trade
7. What their charting package and forex trading platform is like
8. Whether the trading platform provide a demo account for you to practice on

Hey Jason,

You are absolutely right. before start trading with any broker we must check these all things like spreads, order execution speed, order execution accuracy, the trading software and margin. some more thing are important such as in how many currencies transaction does a broker provide, how technically good the trading software which a broker is providing to you, and Will that broker provide some recommendation or tips, if yes then check the tips, How many tips are profitable.

[Jptrader]

I also have an account with FXOpen, the only problem as you highlighted if they do go bankrupt, or they take unnecessary risks, my account is on the line. That is all my money gone. I started off by spreading the risk within other accounts, just lately I found easy-forex that are regulated in the US AU and EU so i am feel safe: if you want to have a look



JP
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http://forex-trading.easy-forex.org.uk/

[adria]

Hi there,

One way to handle your forex trading is to use a tested system and a money management strategy. There is no room for emotion when forex trading, so you will need to use a business-like approach that has been tested on market data. Using a tested approach will save you a lot of stress when forex trading. Also, using a sound money management strategy will allow you to use your capital in the best way when forex trading so that you can maximize profit and avoid major losses.

[jackie101]

Every FX traders (Newbie or Experienced) need to open an account with a Forex broker in order to start trading. So what exactly is a broker or brokerage house? To put it simply, a broker is a company that place your buys or sells orders according to your decisions. Brokers earn money by charging a commission or a fee for their services.

When you started to pick up trading or get in touch with trading FX. You may feel overwhelmed and jump the gun at the first brokerage house that was introduced to you. My advise is, don't be lazy and DO YOUR HOMEWORK!!

Check out these details in your broker:
Is the Forex broker regulated?
Online Trading Platform
Customer Service
Mini & Micro Accounts
Broker Policies

[shirley]

Before picking any broker, make sure you examine their company and background as thoroughly as you possibly can. Some good signs of a reliable Forex broker are the length of the time they have been in operation and if they are a member of any financial regulating bodies found in various countries that currently try to regulate the Forex market. You need to find a broker that you are comfortable with and not need to worry about them closing up shop without warning.

[JuliaKhanam]

Before trading Forex you need to set up an account with a Forex broker. So what exactly is a broker? In simplest terms, a broker is an individual or a company that buys and sells orders according to the trader's decisions. Brokers earn money by charging a commission or a fee for their services.

You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.





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Forex Decoder

[goldie123]

In theory, a dishonest broker could... but keep in mind they cannot move their prices just for you, they would need to move them for all their clients - therefore it is much harder than most people think (and if you ever catch them doing it, it is very easy to begin trading against them simply by comparing charts with a 2nd broker - sooner or later, prices must return back to "normal").

Typically, the dishonest brokers will take a much simpler approach to cheating their clients - requotes and slippage. I happen to know that FxPro isn't one of these, however, because I trade through them too. And I've seen slippage (when it does occur in fast-moving markets) just as often work to my favor as against me (I close a trade and get more than I expected out of it) - so I know it is just random market forces and not them manipulating anything.

[shirley]

Another important thing you need to check into is the reliability of a forex broker. A safe forex broker will always be attainable for help and advice-24/7. You can read reviews from other traders about which forex brokers are safe and which ones are not. Make sure that you do a lot of research and reading before deciding, so that you will end up with a reliable, affordable, and safe forex broker.

[unclegober]

one way to choose a broker is to perform tests against the broker. You can test your brokers by opening a demo account. Although demo account is not with real money it however gives you access to real trading conditions and allows you among other things to see the spreads of the broker, the speed of order execution, reliability of trading platform, etc. I would recommend you to experience trading on their demo account first before making any decision to open a live account. I have been trading with TICKMILL for quite sometimes. I'm satisfied with their friendly customer support and execution so far.

[tenkofx]

To ensure that brokers we use secure then we should use the minimum deposit offered by the broker to deposit as well as look at the performance and the length of time deposits and withdrawals. I saw it before using TenkoFx broker with more funds to open a PAMM ECN account with a minimum deposit of $100

[tenkofx]

Brokers that provide comfort and safety in trading is an option trader. for this case, We must be selective in choosing a broker, make sure that the broker that we use to have clear regulations and have a good response to all customer complaints. And the most important is to have a good reputation. Now I use TenkoFx who provide the best trading condition

[unclegober]

we should not choose regulated broker only. We should choose broker which offers convenient service for us so we can feel comfort when trading and we can focus so we will get maximal result. I also trade with TICKMILL, so far, i still feel comfort when trading with this broker.

[tenkofx]

Until now I am still comfortable with using TenkoFx because I have a lot of choices in trading. other than as a trader, I could also be an investor to invest in the PAMM trader has a good reputation

[unclegober]

Brokers who have a good system will certainly make the trader comfortable. I am now with TICKMILL because the broker is giving me the opportunity to trade scalping without any restriction. although trading under one second

[tenkofx]

Broker that provides comfort for trading would be chosen by the trader and we should choose a broker who has a good service as I get in TenkoFx. I can now use a minimum deposit of $ 10 or opening a PAMM account with capital $ 100

[orni308]

The best way to know about a broker is by getting feedback from a trader who is already trading with the broker, i ve choosen liteforex as one of my friend already had an account with them and he suggested me to go with them.

[wuxiami]

You can examine according to the following steps:
1. regulated body;
2. spread/pips
3. withdrawal spreed
4. System stability
5. Feedback
All information can be found out through google or forum.

[unclegober]

The primary qualities you should look for when picking a broker:

• Transparency
• Jurisdiction
• Security of Funds
• Execution Model
• Systems reliability

Details

[unclegober]

You can find good broker on web search their you will find their ranking as well as all detail what they offer . Now mostly brokers offer low spread , low deposit accounts , different types of accounts you have to choose what you need. You can use high spreads best client support any time.I am happy to work with TICKMILL they give me all what I need for trading.

[wuxiami]

Check their regulation body, spread, system stability, withdrawal speed, meanwhile check the review from previous users, their opinion should be objective.

[mlawson71]

I think the most important factor to consider is regulation. There are many brokers one can pick from, but the safest and most reliable ones are the ones with proper license from a reputable regulator.

[PapiaKhatunAsha]

There are many ways to examine but out of them checking their regulation and for FreshForex will be really good as they have all the regulation papers.