How To Choose A Good Forex Broker

[moonchild]

Choosing a Forex can be daunting to you when you are just getting started, because you'll be bombarded with different options by marketers with ulterior motives that want you to sign up so that they can get affiliate earnings.

The best broker you can choose is ECN registered broker, name doesn't matter, so I won't recommend any broker to you, but what you should really focus on is if a broker is ECN and I will tell you the reason.

An ECN broker is a broker that records your trade and execute it directly to the market, they don't take a trade against you so they will win your money when you lose, all trades go exactly to the banks and they're regulated by an outside bid y which makes them adhere to the rules and regulations.

A non ECN broker on the other hand is a broker that is not regulated and when you place a trade they take a position against you so when you lose they take your money and when you win they pay you.

They are more like a gambling company, you should stay away from them.

An ECN broker website is not hard to recognise the seal is on their website footer.

 

[Jasz]

A Forex broker is a company that acts as an intermediary between traders and the international currency market. They offer their clients the opportunity to trade currencies, commodity futures, indices, and CFDs.

Forex brokers use a software known as a trading platform that allows you to buy and sell with ease, and this is the interface which allows you to make trades. Most brokers will offer a demo account before going live. It's recommended that you make practice trades first using virtual money until you become comfortable with how the process works. You can get used to the different types of orders and how they can be placed when trading on such platforms.

When you're looking for a good Forex broker, consider several factors:

* Choose a broker that offers competitive spreads on major currency pairs. These are usually 2-5 pips but can vary depending on your location - falling within this range is considered normal; anything outside of it should be cause for concern.

* Find one that offers various platforms like MetaTrader 4 or Webtrader so there's no need to install any software; this will save time while also giving you access wherever you are in the world!

* Make sure they have good customer support available 24 hours per day (including weekends) because

 

[Setho]

So many people have talk about how good it is to learn technical or fundamental analysis in the trading on forex but there are some other minor things like the forex broker that you choose that can be able to enhance your experience can even boost your chances of making money .

It is very important that you should use a forex broker that is duly licensed to practice in your locality so that you are not going to have problem when it comes to verification and when you want to make withdrawals straight to your bank account.

It is also important that you should choose forex brokers that allow you to be able to deposit a little amount of money especially as a beginner so that you can be able to trade responsibly .

One of the things that you should also look out for is the user interface of the application which is very important . There are some of them that are very slow but they are made in such a way that do not have technical indicators inbuilt that you can be able to use to enhance your trading experience . You should always go for ones that are fast and do not have any history of manipulation.

 

[Ponmo]

A Forex broker is a company that acts as an intermediary between traders and the international currency market. They offer their clients the opportunity to trade currencies, commodity futures, indices, and CFDs.

Forex brokers use a software known as a trading platform that allows you to buy and sell with ease, and this is the interface which allows you to make trades. Most brokers will offer a demo account before going live. It's recommended that you make practice trades first using virtual money until you become comfortable with how the process works. You can get used to the different types of orders and how they can be placed when trading on such platforms.

When you're looking for a good Forex broker, consider several factors:

* Choose a broker that offers competitive spreads on major currency pairs. These are usually 2-5 pips but can vary depending on your location - falling within this range is considered normal; anything outside of it should be cause for concern.

* Find one that offers various platforms like MetaTrader 4 or Webtrader so there's no need to install any software; this will save time while also giving you access wherever you are in the world!

* Make sure they have good customer support available 24 hours per day (including weekends) because

Couldn’t agree more with the points mentioned by you - these are the exact 3 things I look for in a broker, besides other trading costs as well. And to list out the best I found so far - turnkeyforex, eaglefx, lmfx - Though I’m still working on comparing brokers and finding out the ultimate low cost broker with excellent support.

 

[Sotherefore]

I don't really know but I believe location plays a very important role when getting the best and the most suitable broker for your trading.

What I have come to understand is that, choosing a forex broker is just like choosing a crypto exchanges , There are some cryptocurrency exchanges that do not support all cryptocurrency because probably the platform is not advanced enough to support all types of cryptocurrency . And also at the same time there are some platform that can only be used to trade shitcoins.

As a forex trader when thinking of choosing the best broker you have to consider your location first , if the broker you are interested to used support your location .

And also the currency you are interested to trade really determines. but I know a lot of people will always want to trade the United States dollars , the Russian ruble and probably the British pounds.

All those ones are compulsory in all broken and apart from this one you have to also check out brokers that really support your main currency of interest.

The payment method they are to pay you should also be put into consideration, for example PayPal is not really accepted here.

 

[Tahir4]

That's where wikifx.com comes in. You can check out the site and search for the high rated brokers

 

[Suba]

Of course, before we enter a forex broker, we must know the type of broker we will choose, ECN brokers are included in the No Dealing Desk broker category, so ECN brokers only function as a liaison between traders and the forex market, ECN brokers will also not take positions against traders. ECN brokers usually have a Depth of Market feature that allows forex traders to see buy or sell orders from other traders, so that traders can open opposite orders. In general, ECN brokers only charge a small commission per lot.

 

[Jentacular]

@Ponmo Does any of them provide micro accounts? I am done with demo trading, thinking of shifting to live with a small amount initially.

 

[Ponmo]

@Jentacular All the three brokers that I’ve mentioned offer micro accounts with min lot size equivalent to 0.01 lots. The min deposit required for opening an account with Turnkeyforex and Eagefx is $10 and for LMFX, it is $50.

 

[Jentacular]

@Ponmo Thankyou! I also did my research and found out only turnkeyforex offers a deposit bonus on every deposit. Imo it will be useful to double my trading capital. What do you reckon?

 

[Ponmo]

@Ponmo Thankyou! I also did my research and found out only turnkeyforex offers a deposit bonus on every deposit. Imo it will be useful to double my trading capital. What do you reckon?

I agree.You’ll be able to use the deposit bonus everytime you will make a fresh deposit.

 

[GabrielPod]

@Ponmo Thankyou! I also did my research and found out only turnkeyforex offers a deposit bonus on every deposit. Imo it will be useful to double my trading capital. What do you reckon?

They are not an ECN that's why they can offer such big bonus, nobody gives you free money of the goodness of their heart, read T&C better.

 

[Ponmo]

They are not an ECN that's why they can offer such big bonus, nobody gives you free money of the goodness of their heart, read T&C better.

I’ve been researching about the broker for a long time. As my concern is low spreads, I obviously prefer ECN brokers. Till now I haven’t found a single evidence to support that they are not an ECN broker but I am open to different views because I too don’t want to take any risk. Can you explain why you think it’s not an ecn broker because deposit bonus alone is not enough to justify it and there are many regulated brokers also who are offering these kinds of offers.

 

[GabrielPod]

I’ve been researching about the broker for a long time. As my concern is low spreads, I obviously prefer ECN brokers. Till now I haven’t found a single evidence to support that they are not an ECN broker but I am open to different views because I too don’t want to take any risk. Can you explain why you think it’s not an ecn broker because deposit bonus alone is not enough to justify it and there are many regulated brokers also who are offering these kinds of offers.

Well, sorry to say but I see that you are not very experienced in this, you have a lot more to learn. But don't worry, it takes time and as long as you are focused on learning you can find all answers online starting with blogs like: how to find a good broker.
Now, about me I am working in the industry for about 5 years so I know things inside out...
About turnkeyforex:

• they are unregulated 100% you can notice that by scrolling down and checking for a licence nr... if you open any legit broker and always you will find the licence registration nr on the bottom. Now, this is a red flag for clients on it's own but also is a problem for the broker as they lack the papers need to get deal with a proper Liquidity Provider, which is the part that takes the orders in an STP/ECN broker
• if they are STP/ECN they can't have bonus...as said above, nobody gives you risk free money...EVER!
• many regulated brokers also lie about being STP/ECN or have better bonuses that don't give them exposure to the market, like bonuses that you can't lose, the broker I work for goes for the second option
• low spreads also don't work hand in hand with STP/ECN as even from logic standpoint the broker makes money only from that, so a broker still needs some spread to support itself, exception are broker very very big that have that many clients that afford to have a smaller profit margin

In the end of the day is not much about ECN or STP, if the broker is against you you will always lose, so try to find a broker that has a long term vision. But generally stay away of too good to be true, big bonuses ( bonuses in general are not for your benefit, it is just marketing) and try to stay away from companies that have account manager that always asks you to invest more or in more expensive assets.

 

[Ponmo]

Well, sorry to say but I see that you are not very experienced in this, you have a lot more to learn. But don't worry, it takes time and as long as you are focused on learning you can find all answers online starting with blogs like: how to find a good broker.
Now, about me I am working in the industry for about 5 years so I know things inside out...
About turnkeyforex:

• they are unregulated 100% you can notice that by scrolling down and checking for a licence nr... if you open any legit broker and always you will find the licence registration nr on the bottom. Now, this is a red flag for clients on it's own but also is a problem for the broker as they lack the papers need to get deal with a proper Liquidity Provider, which is the part that takes the orders in an STP/ECN broker
• if they are STP/ECN they can't have bonus...as said above, nobody gives you risk free money...EVER!
• many regulated brokers also lie about being STP/ECN or have better bonuses that don't give them exposure to the market, like bonuses that you can't lose, the broker I work for goes for the second option
• low spreads also don't work hand in hand with STP/ECN as even from logic standpoint the broker makes money only from that, so a broker still needs some spread to support itself, exception are broker very very big that have that many clients that afford to have a smaller profit margin

In the end of the day is not much about ECN or STP, if the broker is against you you will always lose, so try to find a broker that has a long term vision. But generally stay away of too good to be true, big bonuses ( bonuses in general are not for your benefit, it is just marketing) and try to stay away from companies that have account manager that always asks you to invest more or in more expensive assets.

I got your point but I already know that turnkeyforex and the other brokers I have listed are unregulated. Most regulated brokers that I have checked so far were charging withdrawal, inactivity or other kinds of fees. As I said, I am looking for low cost brokers. I found these worth trying since these brokers also had good reviews. However, the explanation that you put forth made me curious to understand deeply about how to identify a good broker as you said mode of execution should not be the only criteria. I’ll look into it. Thank you.