HOME   SEARCH BROKERS   COMPARE BROKERS   REVIEW BROKERS   ADD A BROKER YOUR FEEDBACK LIVE FOREX CHARTS  
ADVANCED BROKER SEARCH & COMPARISON
BROKER CYBERSEARCH

391 Forex broker updated daily — Search, customize, sort, compare in few clicks! Welcome to experience the Broker Search on a whole new level!

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:


Read more...


Broker discussion area

Jock

July 10, 2011

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


BrokerGuru

May 17, 2011

@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India, and I can't suggest anything about the broker, except that their NFA membership is no longer pending, it's been withdrawn.


RahmanSL

May 16, 2011

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


RK

May 15, 2011

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]


BrokerGuru

May 13, 2011

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!


RahmanSL

April 23, 2011

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


trader

April 17, 2011

GFT has met all my trading needs and desires.


trader

March 24, 2011

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


BrokerGuru

March 5, 2011

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.


trader

March 2, 2011

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


BrokerGuru

February 19, 2011

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


RahmanSL

February 19, 2011

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


trader

February 1, 2011

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.


trader

January 18, 2011

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


BrokerGuru

December 29, 2010

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.


trader

December 28, 2010

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?


BrokerGuru

December 28, 2010

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.).


Ghazi Nasr

December 26, 2010

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


BrokerGuru

November 17, 2010

Please see my answer here:
http://www.100forexbrokers.com/broker-discussion/wsdfinancial


Alex

November 16, 2010

Hi BrokerGuru,

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

Thank you for your time,

Alex


trader

October 10, 2010

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


BrokerGuru

September 30, 2010

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

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

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

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


trader

September 29, 2010

Hi BG,

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

thanks


BrokerGuru

June 19, 2010

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

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


trader

June 19, 2010

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


BrokerGuru

June 10, 2010

Hi Alex,

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

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


Alex

June 10, 2010

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


RahmanSL

May 1, 2010

Hi BG,

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

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

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

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

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

As usual, all the best!

RahmanSL


RahmanSL

April 24, 2010

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

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

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

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

Thank you.

RahmanSL


BrokerGuru

April 9, 2010

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


trader

April 9, 2010

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


trader

April 2, 2010

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.

****************************************************************************
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.

****************************************************************************
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.

****************************************************************************
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.

****************************************************************************
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.

****************************************************************************
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).

****************************************************************************
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.

****************************************************************************
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)

****************************************************************************
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.

****************************************************************************
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


trader

April 1, 2010

i trade with FXCM AND THEY FRAUD ME


BrokerGuru

March 29, 2010

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.


trader

March 28, 2010

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!!!


BrokerGuru

February 28, 2010

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.


ibrus

February 27, 2010

Hello,

Is there any advantages and disadvantages in using introducing broker.

ibrus


RahmanSL

February 16, 2010

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


trader

February 16, 2010

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!


BrokerGuru

February 15, 2010

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.


trader

February 14, 2010

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 ?


trader

February 14, 2010

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.


BrokerGuru

February 13, 2010

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.


Vishal

February 13, 2010

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


BrokerGuru

February 10, 2010

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.


RahmanSL

February 6, 2010

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


RahmanSL

February 6, 2010

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


BrokerGuru

January 28, 2010

Alright, all the best in your trading adventure!

Also, thank you for supporting 100ForexBrokers!


RahmanSL

January 28, 2010

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.


BrokerGuru

January 28, 2010

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!



Write your comment or a review

Image CAPTCHA
Enter the characters shown in the image.
© 2008 — 2017
100FOREXBROKERS.COM
ALL RIGHTS RESERVED
BROKERS
Search
Review
Add a broker
TERMS OF SERVICE
Disclaimer
Privacy policy
COMPANY
About us
Contact
Careers
Investors
PARTNERSHIP
Advertise with us
Advertise
Your feedback
Link to us

This website is free for you to use but we may receive commission from the companies we feature on this site. Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference) is speculative and carries a high level of risk. Click here for more information.