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:

How to choose a Forex broker

Choosing a broker: Step 1 — Know what You want from trading

Start by creating your very own List of broker features needed.
Choosing your first (or next) Forex broker can be much easier when you sit down and make a Wish list of services and features desired for trading.

Questions to add to your List:

– what currency pairs are you going to trade?
– what spreads would suit you (fixed, variable, how many pips)?
– do you accept paying a commission for trading Forex?
– what would be your minimum investment (account size)?
– what leverage do you need?
– what tools, indicators do you need for trading?
– do you need a specific trading platform (like MT4)?
– do you want to scalp?
– do you want to hedge?
– do you need a trailing stop?
– do you need “one-click-trading” execution feature?
– do you wish to have mobile phone trading feature and/or trading alerts?
– do you care whether it is going to be a ECN/ STP or a Dealing Desk broker?
– do you care about reputation of a Forex broker? (You must actually care, for the safety of your investment).
– which way (wire transfer, Paypal, credit card etc.) can you transfer and receive funds? There could be restrictions depending on the country you live in.
– how much would it cost you in fees to pay for funding, transferring, withdrawing your money?

Sort those questions by the level of importance to You, add your own and begin the Search.

Choosing a broker: Step 2 — Do the search for matching brokers

Scan the network, use search engines and visit every broker website. That’s what traders did in the past!
Today, you can or try our Advanced Forex broker Search tool >>>
Choose Forex broker at www.100forexbrokers.com

Choosing a broker: Step 3 — Pay a visit to broker’s website

After narrowing down your choice to few Forex brokers, it is time to make a further research by visiting brokers’ websites and reading about their Forex trading rules and policies, understanding the terms and conditions; getting a feel of the transparency of the business they do: availability of addresses and phones, customer support services, presence of the information of regulatory institutions they are supervised by.

If a broker doesn’t have any physical address listed on the website on the Contact page (or anywhere else, where it’ll be visible to visitors) it should sound an alarm in your head. Phones, chats, skypes, emails – all that doesn’t count if there is no address!

Secondly, the overall appearance of the website can tell about its owners. It doesn’t have to be all modern and interactive, written on Flash etc, but it should have a professional look and all pages and links must be functional.
Something like “Coming soon” on an empty page is not acceptable! To a new visitor, it always looks like this is a temporary message, but from our experience we already know – it is going to be “Coming soon” for months and years(!). A Forex broker who has opened a business and is accepting money from clients cannot allow a website to function partially!

Next important factor: your best choice would always be to open an account with a Regulated broker — a broker which is registered with appropriate authorities and remains under their supervision and regulation.

– United States: NFA, CFTC
– Canada: BCSC, CIPF, OSC
– United Kingdom: FSA UK
– Switzerland: SFDF, ARIF, FINMA
(Since 2009 all Swiss Forex brokers require to have a banking license)
– Sweden: Swedish FSA
– Denmark: Danish FSA
– Spain: CNMV
– Japan: FFAJ, FSA Japan
– Hong Kong: SFC
– Australia: ASIC
– Dubai: DMCC, DGCX, DFSA, ESCA
This is not a complete list, for other countries there will be other Forex regulatory bodies to supervise Foreign exchange businesses.

Choosing a broker: Step 4 — Read reviews about selected brokers

We have our own section of Forex brokers reviews, but we encourage you to search for additional reviews online in order to make a decision: type in your Search browser: “[Broker name] reviews” and follow the links to read more reviews.

As much as reading reviews about Forex brokers can be helpful, it also can be confusing and overwhelming. Often times we hear from traders that after reading reviews they’ve seem to have hit the wall and no longer sure what broker to choose, because there is so much bad and good mixed up in reviews about every single broker, it is almost impossible to filter out the truth and make a choice. What to do?

We suggest sticking to the simple rules:

a) if a broker has been in the industry for more than a decade – it tells you that the company knows a lot about doing Forex business and caring about clients, otherwise it won’t be here today.

b) if a broker is regulated by a major regulatory body in its country – it tells you that a broker is serious about its business and making necessary efforts to align with rules and requirements imposed by the supervising bodies.

c) if a broker offers more that one trading product, e.g. besides Forex also has Futures, Stocks, Options, Commodities, CFDs etc – it tells you that a broker runs a larger business, carries more responsibilities and has more clients trading with them.

d) while reading reviews, make sure you see no reviews about cancelled profits or denied withdrawals. This is a red flag. If one trader can be wrong (that’s possible), seeing several reviews of this kind would be of a great concern.

Filtering good and bad reviews

Be selective about reviews you read, always analyze who was the person who wrote a review: was it a professional trader, or a novice.
By the actual message of the review it is often possible to see not only the level of education a trader has, but also how well he knows the subject he writes about. This way you’ll filter lots of bad reviews where newbies accuse brokers in troubles they fall in because of own incompetency.

Apply a filter to 5 star reviews as well. It is not rare to see reviews submitted by brokers themselves in order to boost own ranking.
These reviews have a special “flavor” too and despite many efforts to hide the real face of the reviewer, it is not difficult to spot a promotional message hidden behind the review, other times it is 100% clear it was a promotion. Your job is always to have a cool head and judge everything objectively.

Choosing a broker: Step 5 — Final tips for the right attitude

Finally, your approach to choosing a Forex brokers should be somewhere similar to the process of choosing the right bank to trust your money to: reputation, transparency, convenience of carrying operations with money, good customer support.

Client Agreement? What’s this?
As practice shows, many Forex brokers may (forget?) to update their websites according to newly changed trading conditions, e.g. show 1 pip spread while in reality it is already 2 pips, allow scalping, while in reality – don’t. If you don’t read Client Agreement, but instead simply put a check box “I agree” in front of Terms and Conditions while applying for an account, you’re doing yourself no favor.

Know Forex and know your risks

A nice educational resource has been put together by NFA: http://www.nfa.futures.org/forex_training/content/CoverPage.htm
It offers many examples that will help you understand Forex and online trading and fill any remaining gaps about money management, account monitoring and trading risks involved.

Let your choice of a good Forex broker be easy and rewarding!

Copyright ©100Forexbrokers.com | All Rights Reserved

Watch video from Rob Booker: What to look for when choosing a Forex broker?

And finally, check if you’re fully prepared and know everything about Forex world:
CFTC Consumer Advisory: Forex Fraud

Update: January 31, 2016

Just over the last quarter (Nov 2015 – January 2016), basically over the Holiday season, no less than 10 Forex brokers have decided to go out of business. The list of out-of-business brokers is given below:
Araxo4x
AMFX
Apex Financial Services
Azura Markets
Capital Trust Markets
Elxi Markets
DQFX
Elit4x UK
FormulaFX
FxTrader360
InvesttechFX
Nova Tradex
Real ECN
V2FX

Earlier in 2015 the notorious “Swiss Frank surge” has created a large wave of Forex brokers filing insolvency and exiting the market. Among them were some large brokers such as Alpari UK and Excel Markets NZ.
There were a large number of White label and IB brokers who subsequently had to pull out of business. The Forex brokers industry had lost no less than 20 brokers as a result.

This just reminds us again in 2016, that choosing a broker isn’t a few minutes deal, but a serious decision, with direct financial impact.

Broker discussion area

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128 Comments

Thank you very much for this thread! I am sure, by reading this informative thread, new Forex traders will get proper guideline on choosing Forex broker for their demo and live trading! I see, most of the new Forex traders changed so many Forex brokers during the 1st year of Trading! Because, they select their trading platforms without any plan! But , I stay here with my 1st broker TradingBanks! Here I get all of trading facilities that I require!

Is anyone trading with GCI Financial ? was withdrawal always successful ?

Hello
Can you review this broker Forexcorporate.eu I have an account with them with small amount and i want to put more but i want to make sure it is ok because for now everything is fine. i dont want things to change after i put more money. thank you

Jack.S

I’m truly sorry to hear that. Unfortunately, there is nothing you can do but to trust that police will recover your money.
In Pakistan you have Securities and Exchange Commission of Pakistan (SECP) – http://www.secp.gov.pk – which overseas financial activities.
Also, at this time, we don’t have any Forex brokers from Pakistan listed.

Dear BG,

I would like to state that broker FX-IS is a froud and had taken 1000 $ from me and 4 more of my friends and ran away. I am in pakistan and Police processess are very slow may be it will take 25 to 30 years to recover my money.

Please suggest Pakistan policy about Forex is it Allowed. and what will be the money transaction process because banks are not supporting forex…

is there any regulated broker in Pakistan….

i know you are going to help me in this….. SO advance thanks

Regards,

ADNAN

Why does a broker like yadix.com execute HFTs with high quality and speed with no problems for profitable trading, but other STP brokers have delayed execution, large slippage and what seems like manipulation or trades?

I have a powerful dax trading system (scalper + HFT) that makes excellent profit with Yadix but other brokers not, why is this?

Any help please?

Hello.. I need help to review this broker. Is it a qualified broker.

Ct capital inc registered at St Vincent and Grenadines and company based in

Address: Level 27, PWC Tower,
188 Quay Street, Auckland CBD, 1010,
New Zealand.

Phone: 64-9-3632739
E-Mail: [email protected]
Web: mgcforex.com

https://mgcforex.com/

fund managed by http://www.morgagecapitals.com

Thank you very much for your help.

Hi,
good project!
Simply do it, a trial and error is the best method in business. Especially if it’s an online course.
I’m not sure I can offer any guidance on it, I don’t offer online courses.

Guru I want to do online Economic Calendar Data Course, can you guide me takecare

Hi,

NFA in US, FCA in UK – those you can rely on 100%.
ASIC regulated brokers in Australia are fine too.
New Zealand’s FSP register is not enough for a strong protection, only registration with FMA in New Zealand would mean “fully regulated”.
The rest of the countries – we haven’t had much experience with to suggest about the level of regulation/protection that they offer.

Hi, It seems that you have some knowledge here.

I want to ask you about the regulations.

Which regulations do your prefer and which will you avoid in a Broker?

I mean FCA and USA regulator institutions are a must, but are there brokers regulated by another agencies that can be trusted?

I mean, can we trust a France, Spain, Australian, Japanese, Estonian, Ukrainian, Cyprus, New Zealand, etc. regulated broker, which will you prefer and avoid?

(Notice that I’m talking about ECN and NDD brokers that suppose to have no conflict with spreads and another practices like Market Makers)

Thank you very much.

We’re very busy with updates and new broker submissions. More than ever this year, which is great!

wake up BG , wher are you ? it is always nice to read your unbiased expert comments.

Hello Vaibhav,

thank you for your question, yet unfortunately, I won’t be able to suggest/provide an opinion on a broker.

Our website policy is to remain 100% unbiased towards all brokers. We offer detailed information/listing about brokers, but we don’t rate them. For ratings and reviews please visit forums and Review pages.

Thank you for your understanding!

(Both funding options are safe, just make sure you’re able to receive the money with the same method/option you’ve used for depositing).

Hello Broker Guru,

I am from India. I want to start Forex trading with initial investment of $500. I am totally new to this market. I have done practice trading with 4XP.com . Is is it good broker?? I am thinking of going ahead with it.

Also can your suggest me about method of transaction. I am thinking of Webmoney or LR.
I am trying to find out safe & comfortable method of transaction for trading from India.

I don’t want to loose money because of any scam or False company.

Could you please guide me.

Vaibhav

ok thank

Hello Imran,

1 – yes, Forex is legal in Saudi Arabia.

2 – due to vigorous competition for clients, Forex brokers are known to follow-up every trader who has ever left information about himself, registered or downloaded a demo account etc.
Even if you don’t have any experience (or enough experience) trading Forex, they will still encourage you to open a live account. This is very wrong! And the only reason they do it is because they don’t want to lose you as a client (because tomorrow you can find another broker, who might be more convincing over the phone and you may end us depositing with that broker instead)…

Yes, you’ll hear about extensive support, education etc etc, but all these things are basics and will not help you earn all necessary trading skills, which can be developed only though continuous practice. And practicing is best done on a demo account.

Hope this helps!

Hello GB

1st if you can give me info about trading from Saudi arabia ..is it legal ?? and 2nd when i signup with any forex company i get a call from them + email and they are very supportive the guy from the specific company will tell you ” dosent matter if you dont have the experience in forex just deposit the money and we will help you all the way ”

Now my problem is are they really gona support all the way ..i mean give directions to the newbies like they are saying Or they just need the deposit and then will leave you alone with sharks ??

thanks in advanced

imran

Buying signals is not a bad idea at all, though, as it often happens in this industry, there are many signal providers who have little to no clue about trading Forex on a professional level…
If you’re confident that you’ve found the right signal provider, wit credentials and a solid background – go for it! Though it’s never recommended to put all eggs in one basket, be it Forex, Stocks or simple bank deposit.

I don’t have any information about reliable signals providers or where to find them, I’m very sorry.

Hi
Can you write about buying forex signals and if you recommend to work with people who sells signals.

thank you for the article

It is very good and informative article about how we can get good broker. I am agree with the author in all points but I think all the brokers are not 100% perfect , we can find sometime negative point about every broker.
http://www.seekforex.com/

I’m very sorry, I can’t suggest or review brokers. The site policy requires to remain fully unbiased towards all brokers.
Please carefully read reviews, not only on our site, but on other sites as well, then consider pros and cons and if confident, make a trial investment to test live trading conditions.

sir BG can you please tell me something about 4xp broker..thanks

Hi Alex,
To find brokers that offer Fixed spreads, please use our search
http://www.www.100forexbrokers.com/fx/broker_search.php

with the following parameters: “Spread type” -> “Fixed”

Forex.com is one of the oldest known brokers in Forex. With a huge client base (consisting of experienced as well as many novice traders) it’s very normal to see higher volume and percentage of reviews, including negative reviews.
We tried to address this issue about reviews at “Choosing a broker: Step 4 — Read reviews about selected brokers”
here: http://www.www.100forexbrokers.com/how-to-choose-forex-broker

It’s up to you at this stage to decide whether the reviews you read about Forex.com are satisfactory or not. In all cases you can always call a broker and express all concerns you had while reading the reviews.

Hi:

Does anyone have any information on Forex.com? They were recommended, but I have read a ton of bad reviews on them. Also, does a list exist showing brokers specifically with fixed rates?

Thank you,

Alex.

Hi , i recently got interested in Forex and made enquiries with a company called FXORO. I set up a demo account and did ok, and have moved onto a real live one but the spreads are greater, and much greater than most of those seen on here. I cannot find any reference to them on this site. Anyone know of them?
Ta, J (btw, nice site, wish I’d found it before!)

你好,
你的建议对我很有用,我是一个初学新手,我试过 forexcontrol 这个平台,平时我上课,有时候会去炒下,还能赚点呢,做的是短线。而且无论出金和入金都十分方便和安全。他们给我很好的QQ(860924771)支持,一旦我有什么问题,他们会给我,即时的回复。在去年的一年里,我从这个平台上学到了很多。中得来说还是个很好的平台。
谢谢你的建议

——— Google translate ——–

Hello,
Your suggestion is very useful for me, I’m a beginner novice, I tried forexcontrol this platform, usually my classes, sometimes to fry, but also to earn it, do short-term. And regardless of the gold into the Grand Waldo is very convenient and safe. They gave me a good QQ (860 924 771) to support, once I have any questions, they will give me immediate reply. From this platform in the last year, I learned a lot. In too, but still a good platform.
Thanks for your advice

Sorry, we can’t recommend or vote for/against any broker. We’re required to remain fully unbiased.
There hasn’t been complains about 1pipfix, however, regardless the broker you choose, make sure you start with the smallest allowed deposit in order to fully test trading conditions, support and withdrawal process before investing larger funds.

Hi Guru,

Can you suggest pros and cons about 1pipfix ? They have low 1pip spread for a 2500$ account and 3 pips spread for a micro/mini 100$ account. Flexible leverages – Metatrader4 platform. As far as I can read reviews, geting refund and customer services is also good enough. They are again a part of FxSystems ltd, W.I …So what should be done…I see many positive reviews on babypips.com

Thanks for your reply

hello all,

in my opinion . the best broker i ever trade with is forexcontrol. it got low spread and its huge that you can buy and sale many currencies . so i really strongly advice all with this broker .
i find their service even during weekend .

Incompetent people providing chat support?
It’s an issue known not only to Forex industry…
Yet, I fail to understand how any reputable company can allow that… Judge for yourself. Try calling them instead of chatting may be.

Answering your questions:
Micro Trading Accounts starting at $100
Minimum Lot Size 0.01
0.01 meaning 10 cents per pip ?
Yes

Standard Trading Accounts starting at $1000
Minimum Lot Size 0.05
what it means ? 5 dolalrs or 50 cents ? is it a website mistake ?
50 cents

Professional Trading Accounts $2500
Minimum Lot Size 0.10
why is 0.10 ? when you deposit 2,500 usd you should get at least 1 lot = 10 usd
…0.10 looks liek cents > so where is the professional trading account?
0.1 lot is fine too. You can choose to trade 0.1 lot = $1 per pip or 1 lot = $10 per pip

4runnerforex and 1lotstp belong to the same family of brokers operated by FX Systems Ltd.

I really dont knwo whats your technique to get some answers from all these brokers website, cos i am not beling able to speak with one competent person online chat.
Asking a simple question puts me on hold for a while, redirecting me from one operator to another .
This website is really englightening, and provides brilliant advices. However how do we know taht the opeartor on monthly salary on the live chat, will be able to say the truth about all ?
I might ask are you a real ECN or STP, and she will say yes we are ?
BUt then if asking more specific questions about Mini Lots with MT4 been treated as ECN, she will say yes again. But how can it be possible, if normally ECN account with Mini Lots wont reach the liquidity providers due to their small size .
And if they dont reach the liquidity provider, then we end up tradign again with a Market Maker DD.

I have asked 4Runnerforex forex:
Please would you tell me how many Dollars is 1 Pip, with the macro/mini e standard account option ?

Micro Trading Accounts starting at $100
Minimum Lot Size 0.01
0.01 meaning 10 cents per pip ?

Standard Trading Accounts starting at $1000
Minimum Lot Size 0.05
what it means ? 5 dolalrs or 50 cents ? is it a website mistake ?

Professional Trading Accounts $2500
Minimum Lot Size 0.10
why is 0.10 ? when you deposit 2,500 usd you should get at least 1 lot = 10 usd
…0.10 looks liek cents > so where is the professional trading account?

Anybody know the real answer please ?

@ trader: (1) Does a ECN broker behave like a real ECN NDD only when trading with standard lots ?
What about when trading with mini-lots ? NOt ECN anymore ? but still NDD ?

That’s a very good question.
Sometimes traders receive misleading information, sometimes they simply don’t do the homework well.

ECN accounts are different from all other accounts offered by Forex brokers.
In our CyberSearch, inf we list a broker as ECN/STP (only!) that means that all accounts are ECN. Otherwise, if you see “Broker type: ECN/STP & STP & Market makerB – this tells you that different accounts will have different conditions.
Your goal is to find out WHICH exact accounts are ECN, and which are not. We list minimum deposits and account names for ECN accounts at: http://www.www.100forexbrokers.com/stp-ecn-brokers

1LotSTP is not regulated. There is no Forex regulation in Nevis as far as I know.
ECN accounts with 1LotSTP start from $1500, the rest of accounts are STP.
How do you believe in what any broker says to you? You don’t believe. You check the site, verify the facts, look at discussion threads and then make own conclusion, which would be: Are you comfortable enough with this broker, do you trust them based on what you’ve learned? If you feel you can find a better option – keep searching, but if a broker met your expectations and/or convinced you in their integrity and funds safety etc., then why give them a try?

@ trader: From the chat we can clearly see that support team was far not specific in their replies and clearly avoided providing any details or direct answers. This is an example of a support person using standard chat lines, although it looks like you’re having a normal chat. (Sometimes you can meet cases even worse than that). Unfortunately, it’s impossible to learn anything from such chats. Your next logical step would be to either give them another try by calling in or keep on searching.
ECN accounts are listed here: http://www.www.100forexbrokers.com/stp-ecn-brokers
All of the brokers listed offer ECN (on the listed accounts!).

Thats the kind of answers i get when i try to ask specific questions to a brokerage firm trough live chat>>>
is that your case too ?

Please wait for a site operator to respond.

Chat Information You are now chatting with ‘Roy’

Roy: Hello, thank you for contacting us. How may I assist you?

Derek: hi thanks will ask you some questions please

Roy: Yes please.

Derek: am aware and have read that you are a ECN brokers

Derek: but how come that the spreads are fixed if ECN has only variable spreads and charge commission ?

Roy: Our fixed spread accounts are based on a “target” spread. At times due to market conditions the spread may widen beyond the “target”.

Derek: that does not make an ECN then

Roy: While we work hard with our liquidity providers to achieve our targets spreads as often as possible at times due to market conditions (news events, holidays, lower overall market volumes) spreads can widen at times.

Derek: Ok, thanks,,,The broker acts like a ECN on the pro-fixed account and the ECN account that you are offering of 1,500 usd… BUt will act as a market makes on teh micro account and fixed standard account ?

Roy: One moment please.

Derek: sorry just am trying to avoid like hell, Market makers and Dealing desk brokers who chase stops and counter trade customers,,, so pls would need to know which one is which ,,, i have read reviews of your services on few websites and i want to confirm if its all true before opening liev account ,,,thanks

Roy: Thank you for the confirmation.

Roy: I I mean waiting*

Roy: We operate as a full STP/ECN brokerage. Therefore our accounts operate on a “Market Execution” model.

Roy: This means that once your order is submitted it will be filled at the current available market rate.

Roy: We do not have a “Dealing Desk” (DD) we are not “Market Makers” (MM).

Roy: We are STP. Straight Through Processing and ECN (Electronic Communications Network).

Derek: yes but also on micro accounts and standard account ?

Derek: most brokers ECN or STP do not consider customer’s mini lots 0.01 and if the

Derek: Small orders of 0.01 lots would have to be accumulated into 0.1 lot at least before being sent to the liquidity providers ,,If a broker can’t accumulate enough orders, they will need to countertrade it. That’s major giudelines, but each broker works according to own guidelines and strategies,,, is that your case ?

Roy: Unfortunately, that is an issue I am unable to assist you with at this time using this system. Rest assured, your ticket was received. Please login to the ticket system to check the status of your issue. We try to reply to all tickets within 24 hours. If more than 24 hours have passed it may be a good idea for you to update the ticket to inquire about the current status.

Derek: what is a ticket ? and why cannot assist now ? thanks explain ..
=–=–=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

I am just trying to get an understanding here thanks a lot.

Market makers, or DD are off my list… HOwever as i like to trade with Mini Lots, i should get rid of all STP’s brokers too, due to the fact that they will countertrade you, if standard lots are not used.
Am not asking which one is the most honest, just trying to see which one is likely to cheat less on customers ?
Why on the website the STP + ECN are listed together ?

Where to find a List of all Brokers
ECN only and not STP …
MT4 platform (with THE VIRTUAL DESK SWITCHED OFF inside the platform)
Mini Lots (and not counter traded)
Variable Spreads
Low-Medium Spreads
Regulated of Course
Min Acct deposit 500/700 usd.

The reason for mini account 500/700 is because, i dont want put all my eggs in a basket not knowing if one day, i will be able or not to withdraw from my account.

Thanks for help

Please Broker Guru, help me with this one..
(1) Does a ECN broker behave like a real ECN NDD only when trading with standard lots ?
What about when trading with mini-lots ? NOt ECN anymore ? but still NDD ?

I am quite interested in “1 Lot stp” brokerage firm and have read loads of good reviews,, HOwever most of the positive reviews have been posted by newbies like me, because they underlined how easy was to open an account, or about the friendly live chat…

I did a search using your nice “broker cyber search engine” and found out that 1 Lot STP are not regulated. However i chatted live and the operator said they are regulated, with a bank or institution.. my mistake did not save the chat…

I have read and re-read, your advices about “how to choose a broker” and i have asked those questions to this and some other brokers …. how much capital ? how many employees? how many banks you work with? etc … and i got positive answers every time …

(2) HOw do we know that the operator is genuine ? Forgive me for that, but still allow me to doubt and ask.

1 LOT STP is ECN but offers conditions that does not make it look like an ECN >>
ECN = Pay some commission + Variable spreads.
Fixed Pro Accounts $1500
1 Fixed on EUR/USD Majors are just 1-2 TARGET PIPS and our lowest fixed spreads. No commissions!

(3) How do we behave with that ?

Thanks a lot

Food for thought, saw one nicely explained point, here it is:

Source: http://forums.babypips.com/
Question: “How exactly is a broker supposed to be reputable if reviews are worthless?…”
Answer: “…Successful traders do not whine about brokers or the utterly ridiculous stop hunting comments. All reviews are made by losing traders, not successful ones. Does this register? Ponder on this a bit because it is the ultimate truth on “broker reviews”. Losers review brokers and most broker reviews are negative. This is why I say it is worthless. So if you make pathetic losing trades upon losing trades, the broker is crooked right? Keep thinking that please. And keep on blaming the brokers and tell yourself that none of them are reputable. You are not being eaten alive by your broker; you are being eaten alive by huge trading banks trading with billion dollar trading accounts and central banks trading with trillion dollar accounts and they all know that most traders are trading with technical analysis and we all know where the most stops are don’t we? So do they. Unless you are trading with an outright crook broker manipulating the feeds, don’t blame your broker for your miserable trading. OK? And smart people would have understood my post immediately. ”

Hi,
sorry, never heard of them (bancoprovidencial.com)
Plus their language translation icons on the site don’t work to even invite any further browsing…

Either way, if it’s a bank, this always adds a huge value of trust comparing to any other Forex dealer.

hey BG

What U THINK OF Providencial FX (Banco Providencial, S.A.) IS A BANK OFFERS FOREIGN EXCHANGE

I WAS THINKING OF OPENING AN ACCOUNT ….AND WANTED YOUR OPINION

THANK YOU

Thanks Joe,

that’s true.

trader,

It is possible but everyone has to go through the fire before it’s possible on your own.
Everyone loses money first. Sorry but that’s the truth.. wishing you good luck and profits.

Joe

Oanda CAN NOT HANDLE 0.0001 lot sizes unless you use their fxtrade platform. If you write your own code in MT4 and need MT4 to run those programs OANDA is NOT!!!! for you.

BrokerGuru:

Is it possible for us to make consistent profits with reliable market makers and get away with it or are we bound to lose money with them in the long run, no matter how good we are?

Thankyou for such an informative website.

Hi Karthik,

yes, if you’re satisfied with demo, spreads (1 pip is quite competitive and good) etc. and feel ready to start live trading, then why not. The only advice would be to start with the minimum deposit first, because you want to: 1) make sure that the live platform offers exactly the same conditions and execution speed, 2) your strategy works well in live trading environment 3) your money management skills are smooth and sound 4) you’re able to make a withdrawal.
Once you’re done with that, you can top up your deposit with any amount any time.

At our site we can’t recommend any particular broker, but regardless the broker you choose, don’t forget to read reviews on several sites.

HI GURU!
I’M WILLING TO INVEST $2000 – $5000 TO TRADE, I USED THE FECH-DEMO (FOREIGN EXCHANGE CLEARING HOUSE ) FOR MY PRACTICE. I’M SATISFIED WITH THAT DEMO. SHALL I GO FOR THE REAL TRADE IN THAT PLATFORM BCOS IT HAS ONLY 1 PIP SPREAD FOR ALL CURRENCIES. PLEASE PEPLY ME AS SOON AS POSSIBLE. THANK U. KARTHIK

I give amusing news to all.I found a company called Estocks.com which offers a 30% bonus, has three great platforms including the MT4, has an Ecn account attached to the MT4. I think the coolest thing about this company is that they have the best forex blog on the net.

“Can you handle 0.1 lot trading? This is the smallest lot size that FXPro offers… By investing only $400 and risking $1 per each pip..”

Yes, you can theoretically, but once you start trading, you’ll quickly realize that it takes only -10 pips to lose $10 on a single trade. And with an average of 30-50 pips stop on hourly charts, you’re looking to risk losing $50 on a single trade. That said, trading with such high risks, there is a 95% chance you’ll lose your account during the first week of trading.
In order to avoid the disaster, you should always start trading with 0.01 lots, where 1 pip = 10 cents.

“Wouldn’t a 0.1 lot be $10,000 ? and 1 pip $US 0.01?…”

1 lot = 100,000 units = $10 per 1 pip
0.1 lot = 10,000 units = $1 per 1 pip
0.01 lot = 1000 units = $0.10 per 1 pip

BrokerGuru,

Help me do the math with your post above.. I’m a beginner…

“Can you handle 0.1 lot trading? This is the smallest lot size that FXPro offers… By investing only $400 and risking $1 per each pip..”

Wouldn’t a 0.1 lot be $10,000 ? and 1 pip $US 0.01? That would make each pip worth 10,000 x .01 or $100. That doesn’t even make sense. Can you say the same thing you did above, but a little slower? Thanks!

The best way to choose a Forex Broker is to test out several different ones using the free demo accounts that they offer.

Hi Jock,

At Pepperstone “Razor” accounts are ECN/STP, the rest is DMA/STP.

Go Markets is a DMA/STP broker, there is no dealing desk. Regarding spread widening, every broker with variable spreads will have that during certain market hours, so you have to focus on When and Why those spread widen.

HY Markets is the only dealing desk broker among those 3.

All 3 brokers are properly regulated in their countries:
Hy Markets – FSA UK,
Pepperstone – ASIC,
Go Markets – ASIC.

I have been following this thread closely. I am trying to decide between Pepperstone, Gomarkets and Hymarkets.

@ BrokerGuru. Thanks for all the infromation you provide. Its a appreciated!

According to this website it seems Pepperstone is an STP, but they claim to have an ECN account? Is that true. I have emailed them and still waiting for a response. Im not sure if Gomarkets have a dealing desk? But I have heard their spreads widen terribly at times!! Hymarkets seem well regulated, but I was hoping someone could share more infromation about them in terms of reviews please?

Look forward to your replies 🙂

Jock

@RahmanSL:

Thank you RahmanSL,

as usual, your feedback is informative and interesting to read.

@ RK:

Sorry, RK
I read about the rules in India, and I can’t suggest anything about the broker, except that their NFA membership is no longer pending, it’s been withdrawn.

BG, thank you very much for your valuable input on FXPrimus.
…and yes, I know your website policy restriction.

To be perfectly honest, now more than 17 months into my forex trading journey, I have still to come across a broker whose trading platform does not have some problems (especially when I start being profitable) and ECN is never what is claimed. Re-quotes & Slippages (which are extremely common in Micro & Std accounts) are substituted/replaced by “no connection”, “text busy”, and plain old 5-15 seconds delay in trade execution.
It’s all so difficult to prove as trades happen at a fast pace with no time to take screenshots.

I don’t think there is a single honest broker out there who doesn’t trade against their client one way or another.

Ok BG, all the best….and your site is still one of the best for information and education.

RahmanSL

Hello
Can you please guide me from Indian Perspective. about Fxcentral. I have noted that their NFA regd. is still pending. I have read at many a places about this company being fraud. but this is only one of the very few companies which has set up office officially in India. It is operating through a subsidiary in India registered under Reserve Bank of India as an NBFC. In India officially Forex Trading is not allowed by RBI or I should best say that it is still a grey area & these companies are taking advantage of these unclear regulations.
Need advice as to the best way to enter in forex trading in India & as to the genuineness about Fxcentral from Indian Perspective.
Thanks & regards

RK
India
[email protected]

Hi RahmanSL,

As you know I can’t provide recommendations/opinion (according to our website policy), just facts & data.
I haven’t heard anything negative or anything that would require an immediate attention regarding this broker.
So, it’s a clean record.
Broker offers competitive conditions on STP and ECN accounts, support team works well, a broker is regulated, reviews up to date are positive. Further evaluations can only be done with live trading trials. Good luck!

Hi BG,

I need your valuable opinion/advice.

I am thinking of using FXPRIMUS as another back-up live account broker as I read mostly good reviews on them. They also claimed “All Segregated Customer Accounts are Independently Administered by Turnstone Group.” and is regulated by the FSC of Mauritius.

I am considering them because they have metals and oil,/gas, and also offer the leverage that I want.

Thank you and all the best.

RahmanSL

GFT has met all my trading needs and desires.

Hi BG,

It has been commented that lately some Brokers are putting “New Zealand based” on their web site. This is similar to that now seldom used “Delaware, U.S.A” based/registered that was so popular with most scammer brokers.

I am posting to warn Traders (especially Newbies) not to simply believe that Brokers claiming to be based/registered in New Zealand doesn’t make them honest or authentic.

Someone posted a reply from New Zealand Securities Commission (which was posted at FPA site):

“In New Zealand foreign exchange dealers are not required to be authorised unless the contracts they are offering are futures contracts. If the dealer is offering futures contracts it is required to be authorised by the Commission. “Futures contracts” is defined broadly under the Securities Markets Act 1988, and includes a variety of derivatives contracts which would not be considered futures contracts in other jurisdictions. Generally foreign exchange contracts which are cash settled and traded on a margined or leveraged basis are futures contracts, though this depends on the terms of the particular contract.

None of the dealers named in your email (16 of them which are listed at the FPA) are authorised or licensed by the Commission either as futures dealers or for any other purpose.

Companies Office records show that most of the companies named below have one of three individuals listed as their shareholder and director, and each of those three individuals uses the same address in the Philippines. This would indicate that almost all of these companies are operated by the same group of people. We will look into whether any of these companies is operating in breach of New Zealand law.

Regards
Hayden Best
Lawyer
Securities Commission
Direct Dial: 04 495 1681”
Extracted from the forum:
forums.babypips.com/newbie-island/35215-edgar-international.html

Thank you for this question.

That’s a very good point.
There are several reasons why this happen:

Off-shore brokers run smaller businesses than banks or large brokers in their native countries.

Being small and new always means you can allow more flexibility in making business decisions, and if something goes wrong, you can close and re-open in a fairly short time & little damage.
By being flexible, off-shore brokers will often offer more aggressive promotions and bonuses while competing for the clients. They can work with the lowest deposits (from $1), highest leverages (up to 1000:1), and throw in other features to win maximum attention. This won’t go unnoticed by traders.

Banks and large brokers, on the other hand, don’t want and don’t need to do the same. They are more conservative in their business strategies, where they rely on own experience and seek stability through offering more conservative trading conditions: higher deposit requirements, lower leverage options, average size spreads etc.

As the result, those two types of businesses receive different clients: less experienced mostly go to small brokers, more experienced – to large brokers and banks.

Hence we have two types of reviews: small brokers are being reviewed mostly, because their “client turnover” is much higher with traders coming, leaving, switching to other small brokers. If a small broker does its job well, its clients will be satisfied, as their experience in Forex is not yet that superior to have higher demands for the online broker.

Large brokers and banks get fewer reviews as their clients tend to stay with one broker more often, and hence, such traders don’t have the need to browse sites like ours or leave reviews. But if they do, the review in many cases won’t get “5 stars”, because an experienced investor will find criticism for his broker (we’re talking about a higher level of demands & expectations).

That’s why we have such difference in number of reviews and their average rating.

We also shouldn’t leave behind the fact that, while pursuing faster promotion small brokers tend to make more frequent attempts to review themselves on various sites. Such “fake reviews” will often have 5-star rating across the board & describe broker features in general words. Any low rating reviews from traders will be quickly covered by several 5-star counter-reviews from broker representatives.
Banks and large brokers don’t have time and don’t want to risk own reputation for that.

So there is a bright and the ugly side of the Forex business. And that’s why traders should rely on the hard facts (regulation, registration, reputation, fund protection, platform test-run, spread checking and so on), and be highly selective when it comes to reading reviews.

TRADING

Saludos

quería hacer pregunta por favor a BrokerGuru en broker de Forex comentarios esta una gran cantidad de broker con 4,5 estrellas los cuales están en islas vírgenes británicas puestos que estos están dentro de paraísos fiscales y esto no tiene garantía para un trader ya sea novato o con experiencia al estar analizando por primera ves la pagina cuando vi las 4.5 estrellas en muchos broker pensé que eran broker que no solo estaban bien regulados sino que eran en su mayoría Bancos como por ejenplo Varengold BANK FX que es un banco de Alemania pero esta apenas con 3 estrellas y eso pero quienes llevan la delantera o están en primer puesto son broker de paraísos fiscales. Gracias y Espero tu respuesta

——— Google translate —————

TRADING

Greetings

wanted to please ask BrokerGuru Forex broker comments on this a lot of broker with 4.5 stars which are in virgin islands as these are in tax havens and this has no guarantee for a novice or trader experience to be looking for the first page you see when I saw the 4.5 star many thought were broker broker that not only were well covered but were mostly ejenplo Banks as Varengold BANK FX is a bank in Germany but this just 3 stars and that but who are leading or are in the first place are offshore broker. Thanks and I hope your answer

Correct. Listen to RahmanSL, he’s got experience.
http://www.edgar-international.org/ – I never heard about this company, I’m sorry; but traders on this forum apparently have more information to share: http://forums.babypips.com/newbie-island/35215-edgar-international.html

trader 1-Feb-2011:

Why invest with a company whom nobody has heard of in the internet forex world????
Present technology allows every Tom, Dick, and Harry to set up a nice web site and lay claims to being the “best” and “biggest” in the business.

RahmanSL

hi brokerGuru

I live in sabah Malaysia.I just want to asks about Edgar International, from New Zealand.They claim that they are a big Forex Company from New Zealand .But when I check at internet, there is no Edgar International registered from New Zealand government. I am worry about my people were they are invest thousand dollar in this company. Pls someone help me, to give me detail about this company.

Thanks. Very informative article above. It will help everybody those who are new in forex trading.Thanks once again.

The separation of client assets from other assets of Ava Capital Markets Ltd. on segregated accounts in Commerz bank Germany guarantees that in case of bankruptcy of the broker, clients will still be able to get their money back, as the money won’t disappear with the company.

Hello Sir,thanks for ur reply.If u do’nt mind,I have one more query.Avafx support says that clients funds r held in segregated account in Commerz bank GErmany.So,German Govt. and commerz bank assures client funds too.What do u think?

Hello Ghazi,

thank you for your feedback!

I don’t think there is any coverage for customers of Ava Financial Ltd., a BVI company. It’s a separately registered business firm, which is not compliant with MiFID and EU regulations (unlike Ava Capital Markets Ltd.).

Hello Sir,
First of all I appreciate ur effort for this wonderful site for search of any broker according to one’s need.My question is about avafx.I have been trading with avafx for 6 months and I find them excellent supportive people.But,recently,through ur website,I happend to read one trader’s view about avafx regulations.It is a bit confusing.For EEA clients it is regulated by central Bank of Ireland but for Non EEA clients,it is regulated by BVI.Why is that?Does it mean funds of non EEA clients are at risk?is Mifid directive does not apply to non eea clients?Is compunsation scheme of 20000 euros is only for EEA clients, in case of AVAFX default?I would be really obliged for ur guide lines.
regards,
Ghazi Nasr

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

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

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…

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

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.

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?

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.

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

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

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

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

I now playn on the flatform of brokers Forex4you. It is which kind of broker. tell me please.

10 Questions to Ask Your Broker

If you don’t know the answers to most of these questions before opening an account with an FX market maker, chances are that you are not making the right choice. There simply aren’t very many brokers out there with good answers to these questions; therefore, unless you are lucky enough to have arrived at one of the better ones, you are probably paying too much for something below average.

1. Are you regulated?
If so, by whom and in what jurisdictions?
What is your NFA number or other regulator ID number?
Do you have any regulatory citations? If so, explain them.

Why this Matters:

Regulation is the single largest determinant of the security of your funds, assuming they are not insured. Thankfully, the number of unregulated forex firms is falling. However, there are still a number of loopholes that companies use to avoid regulation. All of them leave the client unprotected in many ways.

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2. How large is your company?
What amount of capital does your firm have above its obligations?
How many client accounts do you have currently trading?
How many client accounts have you serviced?
How long has your company existed?
How many languages do you offer service in?
How many office locations do you have worldwide?
How many employees do you have?

Why this Matters:

This is a much more important factor than most retail clients realize. If your funds are held in the name of your broker, which is normally the case, then your funds are at risk if your broker goes bankrupt. It’s size and capitalization/solubility are direct factors in determining how likely it is to fold (go under).

Size isn’t everything, however. Case in point:

One of the largest retail FX market makers around–RefcoFX Associates LLC–froze client funds for several months and returned a small percentage of client balances due to the bankruptcy of Refco LLC. Which means that you should seek, and in the current environment, demand, that your broker is as regulated as possible, holds funds in your name rather than the its own, and best of all, offers government- or bank-sponsored insurance on client funds. If your funds are not protected from bankruptcy on the part of your broker, what is the point in focusing on making good trades?

Many brokers will claim that Fidelity 14 bonds protect your funds. Look closely here: most firms have these, but to our knowledge they only protect against fraud on the part of your broker. They do not protect clients against bankruptcy on the part of the market maker. RefcoFX (see above) posted F-14 bonds and they did not protect client funds.

As a rule of thumb, multiple layers of protection is best.

If you have a large broker, great.

If you have a large, regulated broker, better.

If you have a large, regulated bank, better.

If you have a large, regulated bank or broker with a bank guarantee on funds, even better.

If you have a large, regulated broker with a government-guarantee on funds, best of all.

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3. What is the legal name of the counter-party to my trades?
Is this the same as the name I am depositing funds under?
Is this the same as the name of the regulated entity?
If your platform links me to various banks or liquidity providers (i.e. “no dealing desk”) how do you control the quality of execution?
Do you allow investigations of disputed trades? If so, how do you handle them?

Why this Matters:

This may seem like a minor point. However, this is as important as the spreads you are offered. Why? Because a firm’s policy on crediting client’s accounts in the event of a trade error on their part can mean a difference of thousands of dollars in a single trade.

If you deal with a multi – bank or multi-counter-party platform, it is very likely that your account will not be credited if something goes wrong with a trade (even slippage of 50 pips). If you deal with a large, reliable, single counter-party, it is more likely that your voice will be heard, although the process of trade investigation is time-consuming and in many cases frustrating.

Be sure that the legal name of the counter-party to your trades matches the name of the party you are sending funds to, the entity listed in the regulator’s records, etc.

One more thing: getting a “match” is not enough. Make sure you understand where your trades are routed to, and do not allow any broker, bank, or ECN to avoid the question. If you are dealing on a no-deal desk platform, chances are high that your trades will not be investigated to your satisfaction. Keep in mind that this is appropriate for many clients, who prefer the lower-cost solutions over the long term and are willing to give up other factors in exchange for lowest price.

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4. What exactly is protecting my funds?
Are they held in the broker’s name, or in my name, at the bank?
Are they segregated, or only separated, from other client funds and from company funds?
Is there any specific insurance protecting my funds?
What happens to my funds if your company becomes insolvent (bankrupt)?

Why this Matters:

This one should be obvious. Foreign exchange is becoming more and more regulated, but until it is illegal for a forex firm to open up shop without being regulated (particularly in the United States), it is best to investigate exactly what measures your broker or bank has taken to ensure security of funds, so that your funds are not compromised or placed at more risk than necessary.

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5. How are my trades executed?
Do you have a dealing desk?
Are all trades executed automatically, or does a dealer monitor execution at times?
If you do not have a dealing desk, who are the liquidity providers and how many are there?
Are you opposed to certain styles of trading such as scalping (ultra-short term), picking (attempting to improve your entry price based on multiple price feeds)?

Why this Matters:

To understand why brokers and market makers have practices like dealer intervention (confirming a trade for price and size prior to filling the order) you have to think about things from the standpoint of the market maker. They are of course a business, and nearly every policy they implement is arranged so that they are able to make a profit. With things like customer satisfaction and special features, this can work in the client’s favor. With execution, however, the broker’s gain can be your loss, and vice versa.

If you are in and out of the market in seconds or minutes, and your broker is not offsetting that risk in the meantime, then it’s very likely they are losing money on your volume. If that is the case, it is to be expected that they will institute a practice (dealer intervention, re quotes, slippage, entry order restrictions, stop/limit restrictions, increased spreads) to ensure that they remain profitable on your trades.

The solution: find a broker who does not penalize any type of trading, or who at least is not opposed to your style of trading. Bear in mind, however, that this issue is one which is rarely discussed in complete openness with a sales representative. Most representatives have incomplete information or are only allowed to reveal part of what they know about their firm’s execution practices. In the end, the only surefire way to judge whether a broker will punish you for your trading style is to test it on a live account–hopefully in very small amounts and without risking a large amount on your trades.

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6. How does your level of support and service compare?
Can I trade over the phone if necessary? At what cost, and are there any restrictions to doing so?
How fast is your response time to phone calls, emails, and instant messages (ask, then test this yourself)?
What are your service hours? Can I contact you quickly and easily during market hours? On the weekend? (test this)
How qualified are your service and sales representatives to answer my questions (test this)?
How fast do you process paperwork, account changes, deposits, withdrawals?
What types of changes to my account can I process or request online, what which require signed paperwork?

Why this Matters:

Prior to opening an account, funding and withdrawing, experiencing an issue with technology or a trade, and working with a broker as a client rather than as a prospect, it is difficult to answer this question.

One of the best ways to do so, however, is to act like a client, contact (phone, email, instant message, voice mail) a firm, and see what their response is. Service is a factor that seems as though it can be sacrificed, until it actually comes into play. See how fast a message is responded to, whether a firm’s representatives are available and knowledgeable at odd hours or on weekends, and whether they process your application paperwork in a timely fashion, prior to sending funds.

Don’t let this one become a deal-breaker, but be sure you understand what you are getting into in terms of support quality before making a purchase (that is what opening an account is).

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7. What are your spreads on spot pairs , forwards, options, and swap rates?

Are your spreads variable or fixed?
Do you provide historical data showing your spreads?
How do spreads differ based on trade size? What changes when I execute 1K, 10K, 100K, 1mio, 10mio, 50mio?
What are your spreads on overnight swaps (i.e. positions rolled over to the next trading day, positions held open long-term)?
How is interest on positions held overnight calculated?

Why this Matters:

On spreads:

This is one of the most hotly debated areas among clients and brokers. As a rule, all parties overweight spreads in any discussion. Brokers overweight them in their pitches and marketing materials, and prospective customers overweight them in their choice of a broker.

One does not know the quality of the spreads one is getting, the liquidity (size) available on those spreads, the consistency of the spreads, or the actual spreads themselves until one trades LIVE with a broker or bank.

To truly analyze spreads, open more than one live account and observe spreads during all market conditions over at least one month.

Then begin trading in small size, and eventually increase size to ensure that the quality of execution and the liquidity available is adequate for your trading needs.

The market environment has changed drastically thanks to traders’ intense scrutiny of spreads. This means that a firm can attract clients by offering seemingly razor-thin spreads, without any scrutiny of other factors that matter more. Witness Crown Forex (http://www.crownforex.com) and Dukascopy (http://www.dukascopy.com/) both of whom are relatively new entrants to the market yet offer spreads as low as .5 pips, with several hundred million of apparent liquidity the case of Dukascopy.

How is this possible? Is it plausible? One cannot know until one witnesses their spreads in a funded account during diverse market conditions, and eventually trades increasingly large size on those spreads, again across diverse conditions.

On swap rates:

There are a few different ways that brokers and banks account for the interest they charge on positions held long-term or rolled over to the next trading day. Without going into a detailed explanation, suffice it to say that the main factor is the spread between the bid and the ask (just like in the currency pairs themselves). If your broker charges $6.00 per night for you to hold a trade open, and pays you $5.00 per night on the exact opposite trade, then the spread is 20%. $1 / $5 = .2 or 20%. If your broker charges you 7.00% to hold a position, and pays you 5.50% to hold the opposite trade, the spread is 27%. 1.50% / 5.50% = .2727 or 27.3% rounded.

While it is difficult to make a true apples-to-apples comparison in this area, the better brokers provide up-front information on how much their swap rates are marked up relative to inter-bank levels.

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8. Fees, etc.: List all your fees.

Do you pay interest on unused funds, or unused margin?
At what rate, and how can I keep track of it?
What is the cost of withdrawing funds?
Do you offer any free methods of withdrawal? Any restrictions on them?
What other fees do you charge? For opening, closing, maintaining the account?
Are there any other requirements to avoid additional charges (i.e. minimum trading volume per month)

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9. Does your firm have Introducing Brokers (IBs)?

Why this Matters:

Market makers often pay other firms to bring them business. This is not at all unusual, rewarding others for referring your firm business is a common practice in many industries. In FX, however, it results in a massive hidden cost to you, the trader. The biggest portion of the market maker’s profit comes from the bid-ask spread. Some firms are able to make only a portion of a pip per trade. Others may aim to make a full pip, two pips, or even several pips.

If a firm introduces a client to your broker, your broker must compensate that firm. Normally, brokers give up a portion of the spread–a so-called rebate–to the IBs. For very large or important IBs, the firm might give up as much as a full pip. This means that if you are not getting additional, and very valuable, services from an IB, then your broker is making a full pip more than they otherwise would.

Think of it: every trader with a modicum of sense realizes the importance of cost to his bottom line. Why pay 3 pips on EUR/USD if you can get it for 2? Most fail to realize that the biggest and fastest way to reduce spreads substantially (by a full pip or more) is simply to trade with a firm that doesn’t pay IBs to bring it business.

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10. What features or benefits does the company provide?

What is special about this broker?

Contests, charts, relevant news, trading advice, education, technology, trading platform, analysis, and anything providing a better trading experience do affect the quality of your experience trading.

Why this Matters:

Small things can make a big difference. Some companies have trading platforms that only compatible with PC computers, and not Mac or Linux. Some companies have poor charting and news. Other companies just simply offer nothing extra to give to the user experience.

Take a look at this list of features each firm can offer, but can vary in quality:

– Web Based Trading Platform
– Downloadable Trading Platform
– Contents to win extra prizes
– Trading advice
– Trade Signals
– Charts
– FX Related News
– Currency pairs beyond the majors
– Easy reporting
– Trade strategy programming

i trade with FXCM AND THEY FRAUD ME

Prime Forex is a dealing desk broker, not regulated.

Client Agreement Quote:
“As a result of acting as Principal Customer should realize that Prime4x maybe acting as your counter party and that Prime4x maybe placed in such a position that a conflict of duty occurs.”

Also, if you want to scalp, this broker won’t allow scalping much, although initially scalping is allowed.

The rest is similar to other brokers: small deposit and micro accounts, fixed spreads & familiar MT4 platform.

Precious U.
Please can someone help me out to help me ellaborate about Prime Forex. How are there are there really a good Forex broker even though they are STP broker and they are low spread. Thank you!!!

Hi Ibrus,

thank you for a good question.
It depends on a broker, but here are the main pros and cons to consider:

When opening an account with an introducing broker (IB):

PROS: you may get the same conditions as with the prime broker.
CONS: but, you also may not, and the most unpleasant of all would be when spreads with the IB are higher than with the prime broker. This is explained by the fact that an IB earns a commission from his prime broker in the form of the pip difference quoted to traders.

PROS: deposit requirements to open an account with an IB could be lower, also it is possible to get a higher leverage.
CONS: deposit requirements could be higher than with the prime broker, depends on an IB.

PROS: as a rule, with an introducing broker you are going to get the best customer support, almost like VIP support, which is not always achievable with the largest prime brokers, who have thousands of clients and can’t dedicated an extra time to each client.
CONS: none. If an IB can’t provide an exceptional support, there is often no other significant benefits to choose an IB instead of their prime broker.

Hello,

Is there any advantages and disadvantages in using introducing broker.

ibrus

Dear BG,

Thank you so much for your sound analysis of the 3 brokers I am considering as my Live Broker.
Another (-) for MB Trading is they also don’t allow hedging.

Since MB Trading invalidated both my Demo trading accounts that leaves me with only 2 brokers which I am still (at this moment) demo trading with.

On both Demo accounts over a 3 days trading, in Tadawul I managed to bring the Demo account from USD1,200 to slightly over USD1,400, and in FXopen, from USD2,100 to over USD4,700. Both platform execution are behaving well, and so I will flip a coin and see who will be my ultimate broker.

Thanks again, BG, and all the best.

RahmanSL – Malaysia

sou iniciante no forex mas háinumeros detalhes á conhecer isto não dá pra fazer de um dia como outro o que eu sei é somente o basico e do básico quase nada só sei o que é stop loss, tp, e que há robos q abrem ordens de buy e sell e outras coisas q tb não sei no momento mas eu aprendo pois tenho muita vontade de aprender e claro eu terei de aprender, mas no momento eu queria conhecer qual corretora forex que trabalhe com ordens de buy, sell, stop loss, com todos os pares de moedas tudo isso , sem ser de forma manual que seja de alavancagem 1:500 e que eu possa depositar um capital de 1000 usd e q me renda por dia mais de 500 usd se houver eu quero saber pois estou pesquisando faz um tempo e não sei encontar essas informações em todos os sites de forma completa aguardo um mgrande abraço ate breve!!!

—————————————

Google Translation:

I am new to forex but háinumeros details will know it does not to do from one day to another what I know is only the basics and the basics almost anything just know what stop loss, tp, and there are robots q open orders buy and sell other things and q tb do not know at the time but I learn because I have a great desire to learn and of course I’ll have to learn, but when I wanted to know which forex broker to work with orders to buy, sell, stop loss, with all currency pairs all this without being manually that leverage 1:500 and that I may hold a capital of 1000 usd eq me rent per day more than 500 usd if I want to know because I am searching for a while I do not know encontar information on all sites fully expecting a hug mGrande ate breve!

Thank you for your questions, but I’m not able to help you here, since your request is basically asks me to select a broker and give you a strategy to trade and make profits. Neither condition can be achieved with my help, I’m afraid, because I don’t recommend brokers (it is against the website policy to give advantage and promote any of the brokers) and I certainly can’t help you become a trader right off the table, because it is evident that you are a beginner to Forex, and, therefore, there is a lot of learning for you ahead before you can trade with real money.

My best advice would be to start learning Forex step-by-step by opening a demo account with any Forex broker. You can trade Forex while living in India. Traders all over the world can pick a Forex dealer not only from their own country, but from any country in the world, while the laws, as well as religion, is never a barrier, because the needs of all traders are met and respected by many brokerage companies.

Take it one step at the time, learn about Forex trading and currency technical analysis in particular and you’ll be on your way to modeling a trading system and starting your trading career at first on a virtual account, and later on a live account.

respected guru,

i am living in india. i hear that forex trading is not legal in india. i don’t know whether it is right or not. can u suggest me the best trading broker ?

respected guru ,

my question to is that how can i trade with out risking much money? where can get the accurate prediction, strategies, and tips.

i am going to trade in live account.

Hi Vishal,

I don’t have any experience with this broker.
All I can say is that they are not regulated; plus they are market makers, which means that they trade against you, and you have a natural conflict of interests.
You can sure stay with them, but do not postpone the first withdrawals when you make profits. When you have more positive experience with them, you can be more relaxed.

Hi guru

I have open forex trading a/c with IFOREX. where it is good for stay with this broker , i am staying at India.
Now i am practising with demo account.
what about this broker.
Can please suggest on this?

Vishal

Hi RahmanSL,

I can highlight pros(+) and cons(-) for those brokers based on the facts we have:

Tadawul FX
(+) properly regulated
(+) no dealing desk (STP)
(+) has required commodities
(+) scalpers are actually welcome
(+) good support
(-) min lot size is 0.05 lots, which is $0.50 cents per pip. It is not a problem if you’re an experienced trader, but could create some inconvenience if you’re just starting it.
() spread are fixed

FXOpen Level 2
(+) regulated. It’s not those large regulators (FSA UK or NFA), but I think it is fairly sufficient
(+) no dealing desk (ECN)
() spreads are actually variable
() you have to pay commission with Level 2 (ECN)
(+) has required commodities
() there is a scalping policy (not sure if it is applicable to ECN), which says that you have to hold a position for at least 60 seconds.
(-) minimum lot size with ECN account is 1 lot, which is $10 per pip – it’s not suitable for beginners, unless your deposit is no less than $10 000 and you’re comfortable with risking $100 for every 10 pip move in the market.
(+) support in the forum is a plus

MB Trading
(+) properly regulated
(+) no dealing desk (ECN)
() spreads are again variable
() you have to pay a commission
(-) no required commodities
(+) scalping is allowed
(+) min lot size is 0.01 lot – suitable for traders of all experience levels

So, that’s how these brokers stand.
You have to keep in mind, though, that above all important factors, such as: spread type, scalping, hedging policies, dealing desks or STP/ECN, quality of support etc, there is still one Major Factor – The Cost of Trading.

Your trading will eventually boil down to numbers, where the key role will play:
a) the cost of spread
b) the commission cost
c) the minimum cost of 1 pip (determined by the min lot size)
d) the risk of getting a margin call (with any deposit below $10 000 you need a proper leverage)
e) the cost of rollover
f) the minimum distance for TP & SL. (Some brokers don’t allow placing stops closer than 10 pips to your entry point, so you have to be aware of that. The above mentioned brokers don’t have this minimum distance policy, as far as I know.)

So, that’s what eventually will dominate and determine your account balance shifts as you trade.
Therefore, when looking for a compromise in between pros and cons for every broker, try not to over-compromise too much against the Cost of Trading.

Dear BG,

At the start of my forray into the world of forex some 4+ months ago (2/Oct/2009 to be precise when I first registered for a Demo Account with one broker picked out from a side advertisement from a web site), which seems years ago, I am still standing at many cross roads and still very undecided which road to travel.
Shall I go down that road with this broker or should I go with the other broker? So many uncertainties, so many reviews by so many faceless traders, so many obvious & some not so obvious self advertising & reviews….uncertainties, followed by more uncertainties. Questions upon questions.

I thought I should go live with one broker, then I had second thoughts…then I thought I should go with the other broker instead, but hesitated as it could be the wrong decision..then again…the story goes.

But the single strangest, and possibly the weirdest and bizarre experience, which I shall find hard to forget would be the case of that broker’s reaction to my simple request for more info on their company, especially for their tight spread for WTI oil. From a relatively unknown broker, I think I am responsible for them being quite well known now, but not for being a reputable broker.

Anywhere, BG, I know all too well your stance on recommending or for not recommending brokers, and I shall not ask you to do so. But, if I ask for info, you can comment on them which, as I have mentioned many times before, that I do value and trust.

Tadawulfx: STP BROKER with fixed spread. Have both good & bad reviews, but their reps seem open & reply to questions in open forums. Trading platform execution Demo): Reasonably good and reliable. Been practicing on their MT4 Demo account for over 1 month straight and made some good profits too, but also lost some too in bad trades. Have by beloved commodities trades of WTI oil and Gold too. FSA registered. Allows scalping with no known restrictions.

FXopen Level2: ECN Broker with fixed spread. Basically same as for Tadawulfx, and also with trades for my beloved commodities trades of WTI oil and Gold too. Not registered with FSA and NFA. Compensated with open forum with open posting sections for many nationalities. Seems to allow scalping as posted in their open forums.

MB Trading: ECN Broker with fixed spread. Basically same as for Tadawulfx & FXopen, but none for my beloved commodities trades. NFA registered. Allows scalping with no known restrictions.

I will keep Easy Forex (even though they are Market Maker with high spread) with some live “seed” money simply because I have found some info on their trading platform to be of value to me while trading in MT4 platform which had helped me made some wise & profitable trades.

So Big Guru, hopefully this would be the last time I have to trouble you in helping me out in the above.

As always, thank you for all your help, advices, directives, and patience with me which will be with me for the rest of my trading days. And, I shall always be indebted to you.

Very sincerely,

RahmanSL

Hi BG,

First and foremost, be assured that I WILL drop the name of your site wherever I can…it’s also very informative which I am sure other traders will find so too.

Secondly, I still have not started live yet because, as seem to be the case, I have changed my mind with whom I should go live with. Out of the 9 brokers, I am active only at Tadawulfx and EasyForex platforms. I am thinking of Tadawulfx now as they too have WTI oil, plus Gold & Silver…and you should know my fascination with these commodities (much like a moth to open flame…hehehe)….and which comes back to my once-upon-time innocent enquires about our friendly neighbor broker ForInvest.

Well, to cut a long story short and which I’ll not post here, go over to Forex Peace Army and you will find them in the spotlight in two topic forums plus in the “Brokers Reviews”.
So, now I know plenty, in fact more than what I want to know about this (supposedly) “Broker of the Year 2009 award” which is a bogus claim, among other things.

Alright, I will not write anymore on this ForInvest broker as it is a complete waste of time..including using them as a broker. Like I said once before, if it is too good to be true, then it probably is.

Cheers and all the best!

RahmanSL

Alright, all the best in your trading adventure!

Also, thank you for supporting 100ForexBrokers!

Hi RahmanSL,

You know I’m not advising on making a final choice, but I can comment on your information.

The advantages they showed you are good and would save you some cost down the road.
Every broker has its own advantages, so when it comes to working with a future client, they’ll use everything they have in their arsenal.

Trading with fixed spreads allows you to estimate the cost of trading more effectively. Besides, it is true that with variable spreads you may get quite wide spreads at times, which could cost you more money down the road if you’re a frequent trader (with the exception of ECN trading, since there you have lower spreads more often, so when they widen, it is not a big deal). On the other hand, Easy-Forex’s spreads aren’t the lowest among market makers. (Also, I don’t know why, but sometimes on their live quotes ticker on the main page you can see the spread for EURUSD 3 pips, but sometimes also 4 pips… Just my 2 cents.)

If freezing the rate is really what I think it is, that’s very good, because you’ll be probably getting fewer requotes with it. But, don’t take my word for it. You have to try it to know the real answer.

No broker would want you to leave, even when you pockets are empty, therefore many would allow an account to idle without money. Regarding the deposit/withdrawal savings, that’s a definite plus.

In addition, I hope you’ve practiced enough on their demo with the exact amount of money you want to start with, because if you don’t, and you go for a minimum deposit (either on mini or standard account) you may find it challenging to trade with 0.05 lots and 0.5 lots accordingly without practice, e.g. you’ll quickly feel the insufficiency of your buying and selling abilities with a minimum deposit due to the size of the minimum lots.
Good luck!

Hi BG,

Thank you very2 much for your kind and honest advise which I will consider with great care as I do value your opinion.
I have came to realize too that I am considering going Live trading for the sake of trading and to see how I would do on a Live account. Anywhere, I might as well “burn” (hopefully not) USD500 to USD1000 as I would lose that on “other form of trading” anywhere. But at least in forex trading, I can posssibly get some long term “trill”; yah, instead of these one to two days “trill”.

Ok, BG, thank you so much once again and I shall be in and out as when my time permits as I have some pretty hectic scheduled before our long holidays in my region (upcoming Chinese Lunar New year starting 14 to 17 Jan 2010).

Cheers and all the best!

P/S: It appears I am not the only one promoting your site 100ForexBrokers in other sites as I have came across some other traders doing that too.

Hi BG,

….hehehe…this might take you aback after all the back-and-forth posts about various brokers!
But I am actually considering going Live with…..da-dah…Easy Forex as my first real Live account broker.

My assigned broker wrote this when I e-mailed her my intention:
Quote:
“Thank you for your email.
With us, you should consider that our spreads are fixed, not changed during different market situations. Other forex brokers have the flexible spread condition and it could be a setback for you.
Also, we have Freeze Rate function that means you can get 1 pip discount for your trading when you time it right.
You also don’t pay for deposit or withdrawal while other brokers could charge you up to USD 50 for a withdrawal. Other brokers also might require you to leave some free balance in your account at all time, while with Easy Forex, you can leave your account empty and keep it with no cost.

You see, spread is NOT the only cost and consideration.

There are plenty of hidden costs that other brokers don’t want you to see and mask it with lower spreads. In the end you might pay more to them.
So, please consider the points I mentioned above”. :Unquote.

So, as you are my most trusted person in this entire forex world, I would most welcome your opinion before I make that jump.

Thanks for all your help.

Cheers!

RahmanSL

Hi BG,

You really got to consider opening a section for “Just chatting” as I don’t know where to post this.

I was at Forex Peace Army and bumped into another of our guys in this forum referring a Newbie to check ouit your site in choosing a Broker. I, matter of course, chipped in to refer to 100ForexBrokers.com for information on Brokers and other stuffs.

Just thought you like to know!

Oh yah! There is a site called “Forex Signals / Fire pips” which gives free daily signals sent to your e-mail. I am registered with them and received their signals daily and someone over at FXopen forum is apparently using the signals to trade and is getting over 300pips profits.

Forex Signals does not ask for any payments but instead;
Quote: “How can I return the favor or How can I contribute?
Glad you asked. There are several ways of doing it:
a. If you are a webmaster with website / blog, consider linking back to us, eg. Forex Signals
b. If you are active on Twitter then you can Retweet my tweets.
c. By giving thumbs up on Digg and FreshPips. ( The little icon on the left of every post )
d. Donating some of your profits to any charity of your liking or Join my team on Kiva.org
e. If above mentioned things are little to much for you then you can simply help by participating in conversation on FaceBook, Twitter and Blog (via comments). This will not only help out other fellow trades but also keep me motivated”.

They also operate a web site dedicated to getting micro loan for the poor in third world countries.
So,hmmmmmmm, I will check up more on them later as I like their concept.

Cheers!

RahmanSL

Hi Baha,

Please find my answers above

Hi Guru,
Since FOREX enabled the chance for retail traders to attend the big market with a little money it’s really amazing cuz hearing guys who made huge amount of money even with a little money, awesome! So, me too interested in this type of industry especially currency exchange market in the forex. I have been trading a demo version of MT4 platforms from different brokers and now really wondering to be in LIVE to trade, while demo and live totally differs, i made some experience with demo. I read many articles about forex and the crucial step for me these days is the reliable broker without DD, offering ECN with low variable spreads on MT4 platform no matter the commission(but will be best if with low fixed commssions for one lot) and uder the regulation of appropriate authorities. So, I found one and really want to open account at FXOpen within a week but being sure i need some clarification. They claim that they offer ECN/STP account services with as minimum $1000 from 2009, and namely commissions they charge is a bit unreasonable, seems they are ok but there is one problem. it is the location, under the regulation of Financial Services Commission (FSC) of the Republic of Mauritius. Company No.: 084573 C1/GBL; Category 1 Global Business № C108006805 License. Here is what I want to ask from you is to give a piece of advise while you are much experienced on this matter.
Many thanks,
Baha

The Commission licenses, regulates and supervises non-bank financial institutions in Mauritius.
According to its mission and policies: http://www.gov.mu/
FSC does all necessary work to supervise and protect investors.

Hi BG

FSC Republic of Mauritius.
How you think of this regulator? Seen they’re not on the main page listing.

Thank You!

I use Dukascopy.

Trading with a bank is never a bad choice. Your funds are protected, withdrawals are guaranteed, you’ll always get a good client support. The only thing to say negative about them – Forex spreads with banks are always higher.

Regarding C.I.M. Bank in particular – they are STPs with feeds from FXCM.
Not a bad choice, depending on the strategy you’ll be using; if you plan to scalp or day-trade with many orders opened/closed per day, the spread cost would put a pressure on you, but if you plan to invest in long term strategies, you should be perfectly fine.

Hi BG

How you think about cimbanque.com? I can’t find any comment in the internet. I wonder professional trader or Investment company, what type of broker they’re using? It seen like lot of bad comment to retail broker in the internet.

Thank You!

Hi everybody,

I have now been researching the Forex Broker world market for several weeks and my first choice is:

http://www.dbfx.com (Deutsche Bank in London)

It is the largest player in the world, with a 21% market share of the worlds Forex market, they are simply the best in the world. Deutsche Bank FX has the best liquidity behind prices, what god is the price from an ECN broker if it only has 10.000 or 100.000 behind it? Deutsche Bank FX say it has a at least 2-5 million USD behind it’s price, all the time. DBFX offer variable spreads around 1.5 to 2.0 on the EUR/USD and no commission, with an ECN broker I can get 1.0 to 2.0 including commission.

Safety of course, your DBFX account for FX trading are fully protected by the Deposit Protection Fund of the Association of German Banks. Protection is available up to a limit that is determined based on Deutsche Bank’s capital, which is currently in excess of EUR 1 billion per depositor. Good enough for me, 🙂

Deutsche Bank is not a zombie bank, it is profitable and has survived the financial crises without government support .

Other strong players are UBS (15% market share), Citifx (9% market share and FDIC insurance). Citifx also offers ECN with very tight spreads and commission (1.5 to 2.0 inkl commission) and they have MT4 platform, if you are not a US or Swiss resident, you need to open a Delaware (US) LLC corporation for $299 to trade with them.

It gives me an enormous peace of mind not having to worry about if my money if safe
with the Forex broker, if the broker can facilitate my trade or not, if there is enough liquidity to get in and out of the market, that there is 24 hours quality support available
if my Internet connection goes down or something else happens.

I chose Deutsche Bank.

Not exactly.
I’ve listed some of the largest well known regulatory bodies, but it is definitely not a complete list.
As an investor, you should visit a website of the regulatory body mentioned on brokers’ site and review the competencies and level of supervision a Regulator have over its members.

Hi BG,

Choosing a regulated broker is important,
but is it only those regulatory institutions listed on the main page is the most reliable one?

Oh, well. That’s a ton of information!
Thanks a lot!
I’ll review it and update pages here and there.

Hi There,

few forex broker info to share with , cheers

forex-metal
We do no have a dealing desk.
We allow scalping.
We are regulated in two jurisdictions: Panama and Uruguay .
We do not charge any commissions for trading.
We do not request a minimum deposit. It is possible to start trading with as little as a few dollars.
Minimum lot size is 0.01 lot.
Minimum trading size is 500 USD for Forex.
Maximum leverage possible is 1:500.
We offer fixed spreads: https://forex-metal.com/home/contract_parameters
____________________________________________________________________________

gomarketsaus
FX Spreads from 0.5 pips
No dealer interventions or requotes
No hedging restrictions
100% Straight Through Processing
Full, unrestricted use of Expert Advisors
Swap Free Accounts
Mini/Micro lots available
Leverage up to 300:1
No minimum account balance
________________________________________________________________________________

forex4you
– Yes we are a Non – Dealing Desk broker.
– Since we are registered in the British Virgin Islands, and there are no
currency futures regulators there – we are not regulated at the moment.
– Our commision is our spreads, details of which are available on our
website at http://www.forex4you.com/clients/conditions/
– There is no minimum deposit, you can start trading with as low as 2 USD.
– Minimum lot is 0.01 for normal accounts and 0.0001 for cent accounts.
– Maximum leverage is 1:500
– Our Spreads are fixed
– Different currency pairs have different spreads, details of which are
available on our website here http://www.forex4you.com/clients/conditions/
__________________________________________________________________________________

forexte
Yes, as long as it is not done taking advantage of technological/computer discrepencies. A
As forex is an over the counter market, we are not regulated by any one one country’s regulatory authority, we have no complaints from our customer’s in terms of anything illegitimate.
Initial deposit is $250 USD.
Minimum lot size is a micro lot of .01
Maximum leverage is 200:1
Our spreads are for the most part fixed but sometimes change to reflect changing market conditions.
The spreads are very low and can be seen in a demo available at
http://www.forexte.com/practice_account_download.html
_____________________________________________________________________________________

loyalforex
We are stp ndd broker
Scalping means deals less then 5minutes frequently.
we have no commissions and you can deposit for 100$.
min lot .1
max leverage 400
spreads are fixed 24hours
______________________________________________________________________________________

globalfutures
With FXSol,
a. Dealing Desk
b. Scalping –
c. Pip Spreads: please click on link to view the pip spreads
http://www.globalfutures.com/forex/accounts/spreads.asp?refid=Direct&lang=en
d. Initial Deposit
Micro account = $250 minimum
Mini account = $250
Standard = $2,000
e. Highest available leverage: 400:1
f. Spread type = Fixed

With FXCM
a. Non-Dealing Desk
b. Scalping
c. Pip Spreads: please click on link to view the pip spreads
http://www.globalfutures.com/forex/accounts/spreads.asp?refid=Direct&lang=en
d. Initial Deposit
Mini Account = $300 (not available for MT4)
Standard = $2000
e. Highest available leverage: 400:1 upon request; standard 200:1
f. Spread Type: Variable
______________________________________________________________________________________________

eglobal-forex
Yes, we are non-dealing desk broker.
We allow scalping, absolutely.
If you mean specific Forex regulators – then no, but at the moment we
are applying for one.
Spreads only.
No initial deposits.
Minimum lot for normal accounts is 0.01, for cent accounts 0.0001.
Maximum leverage 1:500.
Most of our spreads are fixed. Only small portion of them may change
during the night to another fixed values.
Spreads start from 2. Full list is available here: http://www.eglobal-forex.com/clients/conditions/
_____________________________________________________________________________________________-

2pipsforex
We allow scalping.
No commissions.
2000 usd minimum deposit.
Minimum lot is 1 lot.
Leverage 500:1
Spread is fixed one pip.
____________________________________________________________________________________________

tadawulfx
We are a Non Dealing Desk
We allow scalping with no any time limit
We are regulated under Cyprus Stock Exchange (Cy Sec)
There are no any charges involved in any transaction with TadawulFX
The minimum lot size is 0.05 (5000 base units)-Minimum deposit is $500-Maximumm leverage is 1:500
The spreads are fixed 24 hours a day
_________________________________________________________________________________________________-

activtrades
We are a non dealing desk company – all automated execution.
We do allow scalping in Standard Account and Interbank Account http://www.activtrades.com/index.aspx?page=forex_accttype
We are regulated by the FSA
The commission is made up in our spreads
Initial deposit is 250 Euros or equivalent
Minimum lot size: Micro lot in Standard Account / Mini lot in Interbank Account
Minimum trading size is 1 Micro Lot
Maximum leverage 1:400
We offer both: Fixed Spreads in Standard Account / Variable Spreads in Interbank Account
Please look at this link for Standard Account Spreads: http://www.activtrades.com/index.aspx?page=forex_spreads
Interbank Spreads obviously vary – very tight though. At the moment EURUSD 1.6 pip Spread.
_______________________________________________________________________________

ac-markets
We allow scalping.
Yes! What you click is what you get! We guarantee all fills up to an opening position of US$ 5,000,000! There will be no slippage or requotes on execution.
We are regulated by the Swiss Banking Authority:- FINMA
NO COMMISSION CHARGES & NO FEES. All costs are within our spreads.
Min account size for scalping US$5000.
Minimum 1 x Standard 100,000 lot for scalping.
Leverage 1:100.
Dealing desk / Non Dealing desk – BOTH.
Fixed Spreads – Yes.
___________________________________________________________________________________________________

uwcfx
Non-Dealing Desk broker?
– Yes , non dealing desk — dealing desk will be up/running soon .
Do you allow scalping? By scalping I mean holding a position for less than 1 minute?
– yes is allowed .
Are you registered any regulating authorities?
Yes we are regulated company under CySec(Cyprus Security & Exchange commission ) http://www.cysec.gov.cy/licence_members_1_en.aspx
Commissions charge?
We do not work based on commission charges – UWC spread are 1.5 to 4 depends on trade at time .
Initial Deposit to trade?
Initial deposit is 25$ ( will get 25$ bonus , bonus can be withdrawal after completing some trades conditions)
Minimum lot trades??
Minimum is only applicable on BONUS (10 LOTS TRADES)
Minimum Trading Size Requirement?
0.01
Maximum Leverage ratio?
1:500
Do you offer fixed or non-fixed spreads?
We offer 4 digits spreads —which are not freez
How wide are the spreads?
Depends on market price –sometimes could attend to zero and sometimes could attend to 15 to 20 points .
_____________________________________________________________________________________________________

fxcbs
1. The commissions charged are $8.00 USD per standard lot, i.e. $0.80 per 0.1 lots.
2. The minimum deposit to open an account is $1,000.00.
3. The minimum contract size is 0.1 Standard lot. I.e. 10,000 base currency.
4. Our spread on all currencies starts from 0.1 pips, Our average on majors is 1 pip and our average on crosses is 2 – 3 pips. You can monitor these more closely on http://www.fxcbs.com/rates
5. The maximum leverage provided to our clients is 100:1.
_____________________________________________________________________________________________________

ibfx
There is no minimum deposit for any of our accounts we Recommend 250$ for the mini account and 2500$ for a standard. You can trade 0.01 lots to 50 lots per click.

You can visit this link to see all of our spreads http://www.ibfx.com/platform/contractsizes.aspx

The maximum leverage we currently offer is 400:1, but please be aware that come November 30th, 2009 there is a possibility that we will be forced by the NFA to lower all leverages it 100:1
_____________________________________________________________________________________________________

avscarter
we have both dealing and non dealing desk. most of the retail business is STP ,which is auto execution.
we do allow scalping. you can definitely hold the position for less than 1 min. we are registered with IFSC and also our USA entity is regulated with NFA.
we do not charge commissions on FX. initial deposit can be as low as 1000 usd. we do not have any restrictions on the lot trades as well as have no size requirements. leverage is 100:1
we offer fixed spreads. spreads are 3 pip wide.

To chose a broker, I think that the following criteria should be considered:
– Must not be a market maker
– MT 4 platform
– Regulation by a credited body of organization
– Offer at least a mini lot for trading
– The highest the leverage, the better. It should work on the trader benefit.

Hi Chris,

Both spread types would be fine. With fixed spreads, you will get same fixed rate for every trade you enter. It is a bit relaxing way to trade, since you don’t have to monitor spreads you’re entering at all the time. With variable spreads, you’ll have a diffrent quote every time, but variable spreads tend to be lower than fixed (which is an advantage), although again it is not always the case once you start trading live – depends on a broker; and the only real way to know how spreads behave in reality is to at least demo trade for some time with a chosen broker.

For example, when you have fixed spread of 2 pips with broker A, you know the price you’re going to pay.
When you go with a variable spread as low as 0.9 pips with broker B, you can expect to have a live quote from 0.9 to probably 2 pips anyway, depending on market liquidity. So, you’ll be looking on average at 1.5 pips variable spread, but could also be 2.2 or 2.5 pips, since that’s a variable rate. That’s why demo trading is advised. It would also be good to ask a broker whether their demo trading uses real rates as in live trading.

Also, note that whatever spread it be: fixed or variable, during news announcements and other market-shaking economic and global events the spreads will widen, so it is your duty to check the spread you’re entering with, otherwise you can be caught with 10, 20, 30 or even higher spread (during news like Non-Farm Payroll once a month) – at that moment it woudn’t matter whether you trade with variable or fixed spread.

Hope this helps.

Hello

Thanks for getting back to me, I’m definitly doing my home work, using you link to search and compare. I’ve got 2 forex brokers both are 400-1 in leverage, one is fixed the other is variable.
Both require a $250.00 min deposit, I not sure if it’s better for a newbie to choose a variable or fixed rate.

Again, thank you for your advice, I look forward to your reply.

Chris

Hi Chris,

As you can see I’m avoiding to suggest a broker, since it is our website policy to keep from doing so.
Your search at this stage should include:
a) a broker who offers MT4 platform (learning how to use Metatrader will come in handy sooner or later, I’m sure, plus you’ve got a robot to test… 🙂
b) this broker must be regulated.
c) this broker must offer 0.01 lot size or less for you to start comfortably.
d) finally, you’ll compare the spreads and then also read some feedback from traders over the Internet about the problems they had if any.

These two pages can help you to start the search:
MT4 brokers list – to find a broker with mini account fitting your limit
Mini account brokers list – to see if this broker offers 0.01 lot size
Then you need to visit broker website to find the information about regulations (this can be found as a rule at “About us” page, FAQ page, or you can send an email or ask support via live chat).
Later you can compare spreads at our Spreads comparison table, but better off make sure you double check the actual spreads when you download broker’s demo platform.

Good luck!

Hello Again

Thanks for getting back to me,again I’m not sure what to do next in finding a proper forex broker
using the Meta 4 platform. Again I very new to this business and very GREEN, I just want to make the right decision, using your advice. Just to refresh I purchased the Forex Megadroid and I’m using Metatrader as my Demo account. You mentioned in your reply the good and the bad about
FXPro and OANDA, thanks again. I’m trading the us/euro currency and I’m going to start live trading in about 4 weeks with $400.00. Would you please offer me a proper Forex Broker for myself a
beginner that offers what I should be looking for, along with good spreads and little risk.

Again thank you for all your and advice and patience

Chris from Vancouver Canada

Hi Chris,

Here is the deal:
MetaTrader 4 platform is one of the leading platforms in the industry mostly due to its flexibility in adding custom tools: indicators and experts. Since you have already invested in EA (expert advisor), you should probably give it a try. MetaTrader from FXPro.com would be a good start, BUT, there is a very big factor: can you handle 0.1 lot trading? This is the smallest lot size that FXPro offers… By investing only $400 and risking $1 per each pip, if you put a stop at just 30 pips, you’re risking to lose $30 at once. How many such stops can you survive?

OANDA has a proprietary platform, which doesn’t support EA trading. FXTrade from OANDA is very basic, which is a disadvantage I believe, but it is still fine to trade with. The largest advantage with OANDA is ability to trade any lot size you desire, even 0.0001 lot if needed. This way you have a massive flexibility to control your risks while polishing your trading. Spreads are reasonably low too.

So, Chris I see basically 3 options:
– stick to $400 investment and find another MT4 broker – the best choice, since you don’t want to risk a lot of money with your new EA.
– invest $4000 and go with FXPro – that’s an expensive adventure for a beginner.
– forget about EA and go with OANDA or any other non-MT4 broker which offers 0.01 lot trading – in case you feel like trading manually.

Hello
I just purchased an expert and it was professionally installed for me, I’m currently using
Meta Trader as I’m using there Demo account for practice. I have about $400.00 US to spend once
I go live in about 4 weeks. My question to you is that I’m a newbie to the Forex industry, what advice, would you give on picking a Forex broker. I’m leaning more on FX Pro then OANDA, but
I’m not sure, which one is the better one, also I’m looking for a Brokers with lowest EURUSD spreads.

Do you recommend I switch to the Broker you advice and drop MetaTrader, just wondering if you
anything about these brokers.

Thanks

Chris Assimes

Could you clarify it a bit further?

is is true that when an individual trade with broker and make profits, for example you deposit the sum of $1000 that you can trade and save your profit to certian amount like $20,000 without the tempering with your money thanks

Here is an additional advice – an in depth research on a Forex broker suggested by Selwyn Gishen at Investopedia article

Choosing a Forex Broker

As a trader, you should always consider the total package when deciding on a broker, in addition to the type of spreads the broker offers. For example, some brokers may offer excellent spreads but their platforms may not have all the bells and whistles that are offered by competitors. When choosing a brokerage firm, you should check out the following:

* How well capitalized is the firm?
* How long has it been in business?
* Who manages the firm and how much experience does this person have?
* Which and how many banks does the firm have relationships with?
* How much volume does it transact each month?
* What are its liquidity guarantees in terms of order size?
* What is its margin policy?
* What is its rollover policy in case you want to hold your positions overnight?
* Does the firm pass through the positive carry, if there is one?
* Does the firm add a spread to the rollover interest rates?
* What kind of platform does it offer?
* Does it have multiple order types, such as “order cancels order” or “order sends order”?
* Does it guarantee to execute your stop losses at the order price?
* Does the firm have a dealing desk?
* What do you do if your internet connection is lost and you have an open position?
* Does the firm provide all the back-end office functions, such as P&L, in real time?

Hi Joe,

Latitude Fx is an NDD (no dealing desk), STP(straight through processing) broker.
They are not an ECN, however. ECN always charge commission, while STP may or may not charge it.

There is more on Forex broker types here: NDD, STP, ECN brokers

Hi Guru,

I must say, this is a very informative site! I live in New Zealand and I’m wondering if you can tell me anything about LatitudeFx? They claim they are have STP, which I had assumed (before coming to this site) was equivalent to being an ECN. However, they don’t claim to be NDD, and I can’t find any mention of commissions on their website. Any information would be much appreciated.

Cheers,

Joe

Hi BrokerGuru,

Thanks a lot for your information. It helps a lot. In fact, I have gone previously through so many websites (brokers that not even in your lists here) and have come to no conclusion.

Thanks
David

Hi David,

It is true, you will never find a broker which wouldn’t been criticized sometime somewhere (unless it is a very new Forex broker). The thing is, you should be selective as to which traders’ reviews to read and which to skip. For example, a review from a trader who claims that broker has “stolen” his money by bringing a margin call or taken out his stop during news hours would most likely be a review of a beginner, who hasn’t learned the rules of trading yet, but he is already screaming and rating the broker as a scam.

Another example, a trader who is blaming broker for not accepting his application for a live account, or a broker who delayed the deposit, or a broker whose client support “sucks” (sorry).
An account application can be declined if a broker believes that a person (according to his financial status, job, average earnings, etc) might have not enough assets to trade Forex.
A deposit can be delayed when a trader has failed to provide sufficient data, required by the broker, or typed in an incorrect information, for example, a wrong account number.
The quality of a client support is a subjective factor, which in addition doesn’t play a crucial part in one’s trading. (If a broker hired some agents oversees, they will most likely be less competent…)
However, if any of the complaints (declines, deposits, client support) are being repeated over and over again, things are most likely serious with this broker, then I’d pay attention to it.

When you read a comment, most of the time you can tell whether a trader has any trading experience or not, then you can decide if the review has a value for you or should be ignored.

Reading brokers reviews you need to focus most of all on: trading platform speed, stability, overall order execution, slippage, re-quotes, spreads, performance during news hours and, of course, a quick trouble-free withdrawal procedure.

I can’t suggest any particular broker, it is against this website policy. Besides, a research is something every trader should do on his own.

Hi All the respected and experienced players/borkers out there,

I have been searching for a broker to open an trading account. However, every company that is found in the internet had been critisized somewhere somehow. I really run out of idea and do not know who to trust.

My request is just to look for a broker company who are

1. Regulated
2. NDD/ECN/STP
3. Low spread
4. Min deposit
5. Min lot (trade size)

Appreciate if the gurus can give me a good piece of advise.

Thanks
David