Should Trade with Broker offering low spread or wide spread?
I have found that there are many brokers on in the internet, but I'm wondering what broker I should choose, because, I found a lot of broker offering spread as low as 0.1 pip, it's so great, but the other such as FXCM or Forex.com offering spread as wide as 2-5 pip, but I feel more confident when opening an account at these companies. So I hope everybody in this forum can help me, or please tell me some truthful brokers that offer low spread to trade, so the chance to get money is bigger!
Thanks a lot in advance!
Second, all things being equal, you would obviously want to trade with the broker offering the lowest spreads.
Of course, all things are not equal in Forex, so you need to take other things into consideration:
What is the broker's reputation with traders?
Are they registered with any regulatory bodies?
Do they segregate client funds?
Do they trade against their clients?
How easy is their trading platform?
Do they offer flexible lot sizes?
These are just a few questions off the top of my head. There are many more that you could ask, too.
Read through this forum and you'll find the experiences other people have had with various brokers. Then, you can decide which broker is best for you.
actually i agree ....the way u ask the questions suggest to me that if start a live account yur likely to blow the account. This the impression i get at least. How long have u been trading ..on demo account?
Im new to the game too .....id say choose a broker and with low spreads but make sure u use there platform till the point yur really knowing it, back to front. I found switching platforms even on demo can lose u money just because the platform is new to u ..
I wish u the best of luck bro ..
open with IB
if you have 10k.
if not with OANDA, i feel good with them
What brokers accept Credit Card?
As propos of saying about broker, I have a problem that in my country, we are not allowed to transfer money outside the country without permission. So I only can fund my acc through my Visa Debit. So please tell me some brokers with low spread and accept funding acc via Credit Card!
StockKJay - Thank you and I'd like to contact you!
Through this post, I'd like to send my thank to StockKJay, and hope if you can read this post, please give me your email or nick chat on yahoo, so that we can contact each other and I could answer all of your interesting question you gave me!
CHEMI, please don't take this the wrong way but I agree with In2Blues and Navi, who I think have offered excellent advice. I am new to the game as well but your question makes it obvious to even me, a newbie that you are not ready to deposit money. After searching for a couple months, I've realized that spreads is just one of many things you must consider in selecting a broker. For me the things that helped me picked a broker in order of priority were:
1. Is the broker regulated in my country (important to some not an issue for other traders)?
2. What is their net capital asset as reported by my country's regulated body.
3. Reputation amongst traders.
4. Customer Service (availability, different methods suchs as phone and chat, responsiveness and willingness to help).
5. Platform's ease of use.
6. Platform flexibility (eg. can I place orders of 0.06 lots or 2.5 lots - my backtesting and demo show this to be important to my system).
7. Platform charting capabilities (or am I willing to sacrifice this and use a different charting service).
8. Available currencies.
10. Deposit options.
11. Withdrawal options.
12. Trading mobility (can I trade from anywhere).
Note that I place spread at the 9th position, but it would go no higher than 5th. This is because the system I am using uses the longer timeframe. As a result, the spread is not the most important factor for me. If I were using a timeframe of less than a day then I would highly consider the spread. Still, I try to not trade currencies with spreads over 10 and even hesitate to trade with spreads over 8. I also highly value how flexible the platform is in handling my system and giving me the best opportunity to make money. For example, if my system required trailing stops then OANDA may not be highly considered since they don't support automatic trailing stops (at least last time I checked). In the end I ended up picking a NFA regulated MT4 broker. Once again, I'm not an expert but my approach seems logical to me.
Chemi, just curious, which country do you live in that you must get permission to transfer money? I realize a lot of countries have this stipulation but man, that must suck.
Good luck with your trading.
I totally agree with others, as the old saying go's " you get what you pay for" brokers that use low spreads to attract clients 99% of the time turn out to be a wrong move.
And I wonder if the people in this thread is still trading forex? hahaha
It is better to find a broker, which provides core spreads, starting from 0. For example 0,1-0,4 floating spread is fine. Additionally, make sure that the broker is NDD (No Dealing Desk), so he will not able to trade against you.
You should always trade with an ECN account.
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