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How To Choose A Broker

Discussion in 'General Forex Talk' started by D-Trader, Nov 2, 2009.

  1. D-Trader

    D-Trader Private, 1st Class

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    This is a extension from the thread (How broker works).
    Starting from start: Picking up the best broker faces lot of questions. I read many articles, discussions in forums and many advises on webpages which leads me to tell some thing. I read mostly traders blames to thier broker if thier trades touch the S/L. Every trader when he/she trades make a dicission him/her self before entring into the trade. I have a quesion, At the time you decide to enter the trade nobody force you to do that even if someone gives you a good tip. You are the only who decide to enter. Now the trade suddenly move to other direction (aginst you). You are thinking, Broker...!

    I open three to five different broker charts and never heppened that the rates differ from one another even my trade moves against me. So I think the broker doing nothing in this case. Quote problems mostly I experienced by Brokers using MT4 and very few having thier own plateform.

    If you have no problem with withdraws and execussion of entring or leaving trade, then you can choose such brokers. I think we should not think on spread different if we are not greedy.

    So if we want to review we sould first consider that I am wrong or broker. Keep in mind that you are the only who decide. At the time you decide to enter the trade, open an account, is the right decision. But after that you realize that you was wrong or right. But you decide youself even you are getting a good tips from others and from articles.

    It is my pleasure to read your opinions and suggesions on my thread.

    D-Trader
     
  2. Pharaoh

    Pharaoh Colonel

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    A lot of complaints and praise for brokers are based on new traders who are either angry or happy about how their first trades went. You need to read reviews carefully to try to get a sense of what the real source of annoyance or happiness is. Be wary of any broker with significant complaints about withdrawals.

    The real market does have spikes. Different brokers will have small differences in prices based on their liquidity providers. Spread during normal trading will also vary some. In times of high volatility, check the spreads between brokers and then you'll see some major differences.

    If you place 3 or 4 trades per day and aim for 40 or more pips of profit, a couple of pips difference in the spread isn't such a big thing. If you make a lot of scalps aiming for 4 or 5 pips profit, 2 pips wider spread can turn a profitable strategy into a losing strategy.

    Each trader's needs are different. That's why I wrote an article to help traders find a broker best suited to their own requirements:

    http://www.forexpeacearmy.com/forex-forum/forex-basics-boot-camp/2333-how-select-forex-broker.html
     
  3. Lhar_fpa

    Lhar_fpa Private, 1st Class

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    Good advice pharoah! I'm wondering if what's your broker? :p
     

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