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How to choose a Forex broker | 5 Practical Steps




There are two most common ways of choosing a Forex broker:

1) Simplified or "lazy way" — which is to read broker reviews, and based on stars and feedback make a choice.
There will be no guarantee, however, that a 5 star rated broker will be the best choice for your trading needs, or that the reviews you've read were actually genuine (unfortunately, that's the reality of online reviews submission).

2) Professional way — which is to do your own research while making reading reviews a part of that research.
We're going to describe the steps of making a professional choice:


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Broker discussion area

BrokerGuru

April 9, 2010

Forex4you and an STP broker located in BVI and the broker is not regulated.

RahmanSL

April 24, 2010

To "Trader April 2, 2010 : 10 Questions to Ask Your Broker":

That's quite an exhaustive load of questions to ask any broker.

My question:
1) Is there any broker who can stand up to that type of scrutiny and still pass the test?? In other word, is there such an ideal broker at all?

Perhaps you can name....ehhh...just one such broker and we shall put that broker to the test.

Thank you.

RahmanSL

RahmanSL

May 1, 2010

Hi BG,

Been a long +6 months and many brokers tried and many Demo accounts burned and completely wiped out.

Selecting a decent & honest broker is really not that easy nor simple.

I have signed up 3 LIVE accounts (micro, Standard, and ECN) with FXopen, but have not activated them yet due to documentation verification issue concerning what constitute as valid "Utility Bill" and what's not.
I uploaded them a Post-paid cell phone monthly bill which has my permanent home address (obviously, since how else can they bill me for my monthly phone usage), but FXopen does not recognize that as a normal "Utility" bill. I am sticking to my contention that Post-Paid Cell phone is just another Utility with difference in that it is wireless. If FXopen cannot see and accept that as another Utility bill (as should also apply to wireless Internet Broadband), then they can shove my Live accounts!

I have EasyForex still on the back burner, but is still reluctant to sign on Live since their spreads are still too high.

I am looking at GFT, but apart from one single very good review here at your site, most of the reviews over at Forex Peace Army are absolutely horrible.
I am a bit interested in GFT for the fact that they seem to have a genuine office in nearby Singapore which is well known for strict regulatory governance. Still, those "horrible" reviews at FPA gave me cause to hesitate.

As usual, all the best!

RahmanSL

Alex

June 10, 2010

Hi Broker Guru
I read about here and elsewhere about brokers, and I found suggested to avoid "market makers" but other hand i found brokers NDD, STP, ECN but still says market makers. Can you make this clear for me please?
Thanks Alex


BrokerGuru

June 10, 2010

Hi Alex,

I'm not sure I understood your question the way it was meant.. Some brokers offer both types of accounts: ECN and Dealing desk (market maker). That's why we list them as both, ECN, STP and MM.

Other brokers provide only NDD trading either ECN/STP or only STP. These are probably the ones you wanted to try out initially.

trader

June 19, 2010

Hi Broker guru,
Some borkers are scam. They did very good website for marketing. They gave a lot of excuse not allow to withdraw the money. winning = no withdraw = 0 = scam. When i read the website, how do i know broker is a scam? and how to i avoid scam from broker?

BrokerGuru

June 19, 2010

I totally agree with your formula that: "winning = no withdraw = 0 = scam"

You can learn about such brokers who don't honor withdrawal requests only from traders' reviews.
There is no other ways or clues we could use to know that a broker is not going to pay.
One thing to remember - you're protected from scams with a regulated broker; with the rest of brokers - you're at the mercy of their business integrity and honesty.

trader

September 29, 2010

Hi BG,

I am new to the forex market. Are there any restrictions about brokers depending on where you live? (I live in the US). I read that there is a new regulation coming soon that will make it harder for robots to function, any thoughts about this?

thanks

BrokerGuru

September 30, 2010

There are no restrictions yet, you can open an account with any broker in any country you wish regardless your residency (as long as the broker accepts US clients). However, in the future, the rules for US residents in particular might get even more strict, where traders won't be allowed to open accounts overseas...

I haven't heard about the troubles related directly to MT4 robots, may be you mean the effect of the leverage cut?

The 50:1 leverage will take effect on October 18th, 2010 for all US brokers.

Of course, it'll impact the way we used to trade; and if someone had a robot which relied on a leverage higher than 50:1, it could be a problem...

trader

October 10, 2010

my experience with Atlaseforex is very bad they are always acting against traders, Traders loss is their profit.

Alex

November 16, 2010

Hi BrokerGuru,

I live in New Zealand and I would like to open an ccount with WSD Financial NZ. Could you please inform me about pros and cons of this broker.

Thank you for your time,

Alex

BrokerGuru

November 17, 2010


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