Choosing a good broker

STRATEGY #1: How to Choose Good 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: 1. 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. 2. 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. 3. How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer" see strategy #2, before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie 4. 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. 5. 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. 6. 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 let mention this three Brokers but also go out to choose your choice Broker. 1. Fx Open FX Open is one of the largest Forex brokers in the world enjoying unprecedented client base growth due to innovative, unique services, reliable trading conditions and strong customer support principles. FX Open offers different types of accounts for traders with different trading styles, objectives, starting capital, experience and skills. Micro, Standard and Professional Accounts. Their trading styles are: Trading Platform MetaTrader 4 Account currency USD Financial instruments 28 currency pairs, gold, silver. Pricing format 4th decimal pricing (0.1234) Spreads ** Fixed. From 2 to 4 pips on the major currency pairs. Commissions No commissions to open/close a trade. Open positions rollover See their website@ www.fxopen.com Islamic accounts SWAP-free accounts for Muslim traders Minimum deposit USD 1 Maximum balance USD 3,000 Minimum transaction size 0.1 Micro lot (100 units of the base currency) with approx. 1 US Cent per 1 pip. Maximum transaction size 1000 Micro lots Open trades max. Up to 100 trades open at the same time. Leverage From 1:1 to 1:500 for Micro accounts under USD 3,000. When the account reaches a balance of US$3000 or more, the leverage will be reduced 100x (for Margin Call At Margin Level of 20% Stop Out Losing trades are closed automatically at Margin Level = less than 10% Expert Advisors Scalping With limitations. ( 1) Stop Loss, Take Profit and Pending Orders 10 pips or more away from the current price; 2) Most of the trades must be open for more than 1 minute;) Hedging, Phone dealing and Demo accounts Visit: www.fxopeni.com for more info. 2. Alpari Alpari offer four different accounts to suit the specific requirements of different traders. Demo, Micro, Classic and our new institutional-level Pro Account offer complete flexibility to trade at the level you want.Whatever your trading strategy, level of funding or appetite for risk - from micro to unlimited-trade sizes - there is an account to match. With our newly introduced Pro account, advanced traders now have the opportunity to step up to institutional-level trading with all the advantages of MetaTrader 4. Micro Accounts Designed for traders new to the Forex market and those trading smaller volumes, Micro accounts allow investors to trade smaller trade sizes and open an account with a lower initial deposit than a Classic account. A Micro account can be used to trade via MetaTrader 4. Micro Account details Platform: MetaTrader 4 Spreads: from 1.6 pips Instruments: 29 currency pairs Fifth decimal: Yes Max leverage: 1:500 Floating leverage: Yes Execution: Instant* Minimum opening deposit: USD200 Minimum trade size: 0.01 lot Trade size increment: 0.01 lot Maximum open position: 2 standard lots* Alpari Research: Yes Alpari Academy: Yes Telephone trading: Yes Account currency: USD, GBP, EUR, JPY, CHF Commission: No Visit: www.alpari.co.uk for more information on the Broker in view. 3. Fx pro Fxpro provides the traders a look across markets to take advantage of the latest economic trends and to continue diversifying their portfolios. The energy, commodities, equity indicies, precious metals, shares and forex markets are always moving and FxPro offers direct and easy access to all of these markets from a single Trading Platform. Fair, transparent, and consistent execution qualities are just a few of the key benefits on offer to you as an FxPro trader. We strive to provide our clients with consistent quality and competitive quoted prices e.g. Competitive Prices, Liquidity, Speed of Execution, Speed of Execution, Dealing Desk, Spreads, News and Analysis, Superior Client Service Focus, Systems Operations Our clients are assured by the highest-quality support we give them through our leading-edge operations and our best-in-class technologies, platforms and accounts. Our Systems Operations team is responsible for all updates and upgrades of the Trading Systems and for informing our clients of any new available versions. For more info. Visit: www.fxpro.com 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.