what should i consider when choosing a broker?
When I chose my first broker (the one i am trading with now) i didnt do any research, I just opened an account with them because i saw an advert online. Now, one year down the line I have not been profitable enough, which i partly blame on the high spreads this broker charges (from 1.6 pips). The brokers mobile app is always freezing so sometimes it prevents me from taking advantage of opportunities when i should. I have finally decided to change, but this time i will be careful during my selection process. So, what considerations do y'all think i should make when choosing a broker this time?
1.Regulation
There are two first-class regulatory bodies in the world: FCA UK & ASIC Australia; brokers regulated by them are usually more trustworthy. So, your next forex broker should be regulated by at least one of them.
2.Spread
Spread is a transaction fee you pay to the broker every time you trade & you said your last broker charged spreads as high as 1.6 pips which is too high. If I were you I would go for a broker with spreads from 0.6 pips. When the spread is too wide, it takes your trade a longer time to become profitable.
3.TradingView Platform
Find a broker that unconditionally offers TradingView as part of their platforms. TradingView has the best tools for analyzing the market, so it will make your technical analysis easier, precise & save you precious time.
I am a scalper & the first thing i consider is the spread on the instrument which i trade most which is eurusd. If the average spread on eurusd is above 0.6 pips, then sorry I am not using that broker.
I trade mostly eurusd so before I chose a broker I ensure the average spread for eurusd is not more than 1.0 pips. I also ensure that the broker offers the TradingView platform because of the advanced easy to use charts that come with it.
Before choosing a broker, I compare their spreads to what competing brokers offer. I trade regularly so spreads although small, can add up in future to be significant enough to leave a dent on P&L.
trading & non-trading fees and regulation. do you know some brokers even charge yearly admin fees up to $100? some of them charge double the spread that other charge, causing you to pay more when your friends are paying less.
You may want to consider whether thr broker offers TradingView or not. Often overlooked, TradingView is the best forex trading software and makes technical analysis easier.
first thing I check is the spread, second thing is the trading software they offer, then last I check their response time when it comes to customer enquiries
for me, Its the minimum withdrawal. I want to be able to take out my money without any hinderance.
I first of all check the brokers account types, I prefer trading with raw spread accounts so the broker must have this. I then check the payment methods to see if the broker support my local payment methods cos I need to be able to put in and withdraw money without any fuss.