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How to choose the foreign exchange broker that suits you?

Discussion in 'Beginners Bootcamp' started by Shanghai爆仓大王, May 6, 2019.

  1. Shanghai爆仓大王

    May 6, 2019
    Likes Received:
    How to select a formal foreign exchange platform.

    Second, how to reduce transaction costs (spread).

    One: transaction cost (spread)

    Many newcomers who are just getting started often don't pay attention to the cost of forex trading spreads. They feel that as long as they can make money, the impact of spreads on transactions is often beyond your imagination. I told you before, the difference between the spreads is one point, the profit is 10% in one year, the difference between the two points can be 20% in one year, and the annual income of most junior investors can reach 20%-30%. less. This is one of the reasons why 80% of traders will have a steady loss.

    1: Foreign exchange fee composition: spread or extra point

    If there is a platform with too low a spread, you have to open your eyes at this time. In the foreign exchange market, the spread of the regular platform is generally between 1.8-2 points. If the spread is too low, it is impossible to maintain the normal operation of a company. Imagine If you don't have any tricks, how can you provide such a low spread to investors? Judging by this basic, this platform is definitely not to earn your spreads, but to look at your principal, as the danger coefficient can be imagined.

    The earliest foreign exchange dealers are the spread + extra dot mode, such as 2 points in Europe and America, plus 2 points. The overall cost of this model is the cost of 4 points. For example, if the spread between Europe and America is 2, A standard hand in Europe and the United States is $20, plus the cost of an extra 2 points is $40. Now the extra points are relatively less, but there are still some unconscionable platforms on the market that will sneak extra points, but you have not checked your own transaction costs.

    If your account has no foreign domestic helper, the spread is 2 points, then your cost is 2 points. If you trade in the currency of the first hand (standard hand), your transaction cost is 20 dollars, if it is trading 0.1 hand Then your transaction cost is 2 dollars, and so on.

    There is also an ECN account on the market that often has a very low spread, usually only a few tenths. The main cost comes from the handling fee. This kind of account often requires a relatively large amount of funds. Traders and financial institutions or large capital traders often like this. Kind of account type. However, it is limited to large and large institutions. A standard hand for opening a position will charge a total of $7 for each $3.50 fee, plus a low spread of between 0.4 and 0.5. The total spread is also around $10-12. The wool that is never sold is never sold, and the wool in the financial market is always on the sheep.

    2: Which spread is most beneficial to traders?

    There is no standard for this answer, because the spread will be lower and lower with time. As far as the current foreign exchange situation is concerned, we take the euro as an example. If your spread plus commission costs more than 2.5 points, it is definitely higher. If your cost is 3 points, then you are a big head. As for a friend with 4 points and 5 points, don't do foreign exchange, because the high spread means that you are very foreign to foreign exchange, 80% of such investors It is a loss of money, and there are too many examples around the traders like this. . .

    According to our standard, the comprehensive cost of the euro is about 2 points, and the gold is about 4-4.5 points. This can be considered a really low spread, you can check it yourself and see if your account matches. Some platforms can apply for agents to take their own trading commissions, which is one of the core methods to reduce transaction costs.

    FPA Forums Team Note: Discussing how spread can affect broker selection is a welcome topic.

    Everyone needs to be aware that this is a non-commercial folder. Giving broker recommendations in this folder is a fast way to be invited to dinner with Spam Cat, as Spam Cat's meal.
    Etedus12 likes this.
  2. 7Bulletin

    7Bulletin Private, 1st Class

    Dec 24, 2018
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    To administration note only that it really happens a lot of chinese people on chinese language with a lot of spam topics about various brokers and deals where like 90% of that forum will never have to deal with in reality, so what all this means out of my imagination.
    Thoris likes this.
  3. Etedus12

    Etedus12 Corporal

    Dec 9, 2018
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    It is very important to choose a reliable broker when embarking on this journey of forex trading. This is because a bad choice of brokerage can lead to extreme failures if your broker has unrealistic terms and transaction costs. A broker with withdrawal problems is not to be relied upon at all
  4. Thoris

    Thoris Private, 1st Class

    Feb 8, 2019
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    When choosing a broker for forex trading, go for a regulated broker as that makes it easy to find a solution in case a dispute arises in your future transactions. Your broker should not have withdrawal problems, should offer a demo account, and its better if you choose a broke that serves traders in your country
  5. bigdolly

    bigdolly Sergeant Major

    Oct 21, 2013
    Likes Received:
    What broker can you recommend then? How many withdrawals per year you make from a broker to claim things that?

    Everyone needs to be aware that this is a non-commercial folder. Giving broker recommendations in this folder is a fast way to be invited to dinner with Spam Cat, as Spam Cat's meal.

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