How true broker comparisons are?

ajbozdar

Private
Messages
10
Greetings,

Below is the comparison of OctaFX with other brokers available on their website. octafx.com/company/advantages/#summary

I'd like to know how true it is? At some point, it is obvious that slippage and delays occur when a trader executes a trade.

I compared a live OctaFX trade with a demo IC Markets trade of same pair and found out that there is a huge difference of profits. Not only OctaFX spreads were wider than IC Markets but also profits were lesser.

In general, I want to know how to correctly compare one broker with another one?

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Thank you.
 

Pharaoh

Colonel
Messages
19,905
There are some very bad brokers out there, so even a terrible broker can favorably compare itself to some unnamed little bucketshop that cheats clients badly.

You need to make sure to check spreads and include commissions (if present). I've seen more that one "ultra-thin spreads" broker make up for that by slapping commissions equal to 2 or even 3 pips on trades. Similarly, some of the "smallest commission" brokers end up with wide spreads (or serious negative slippage).

So, you must be sure you are taking all trading expenses into account. Sometimes, this requires live side-by-side testing.
 

ajbozdar

Private
Messages
10
Sometimes, this requires live side-by-side testing.
Thank you very much for the support, Colonel.

I am comparing some brokers using their demo accounts. In addition to above trading expenses, deposit and withdrawals are also big concerns when it comes to traders in developing countries.

A trader who somehow manages to make 500 USD a month then ends up paying 20USD + conversion charges when it comes to withdrawing the hard earned money.
some of the "smallest commission" brokers end up with wide spreads
How much is actually the smallest commission? Is it 7 USD per lot round turn which AU brokers usually charge to their clients?
 
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