Brokers selection criteria

When selecting a new broker, how important is the spread on your criteria list???

Every bit as important as the average pips generated by your system.

tight spreads = increased profitability.........for you, not the broker.
http://fxtrade.oanda.com/spreads/com..._spreads.shtml

also this link, Understanding spreads.......
http://fxtrade.oanda.com/spreads/index.shtml

If you are trading long term and dealing with a high volatility than your spreads might not matter as much as other factors.

If you are trading often, on lower time scales (or less volatile pairs), spread becomes more important.

Lower is always better, though, as if you have a system which is 50% good at guessing market direction (for example the MACT, my own proprietary Moving Average Coin Toss indicator), you will lose the spread * number of trades signaled, instead of literally breaking even.

If you look at the min/max price rather than the average, you will see the spread at all times. If the moves you are hoping to profit from are small compared with that spread, you have to be a fantastically adept (clairvoyant) trader to profit.

If Bemac drops a ten cents coin on the floor, he will look for it and pick it up. Me, I would do the same.

In Demo, often it works fine. In real trading, it is something else. When your broker offers fixed 2 pips spreads, do you really get that ? Compare your prices with realtimeforex's prices. I found that many broker's prices lag behind ( at your disadvantage ) once you have entered your trade. They are in fact manipulating your order to get extra pips. Another way is reqouting. Your order is not executed immediately. If you click the buy order at 1.2700 they wait 2 to 3 seconds and your order is passed if price moves below 1.2699. If it moves up, you get a reqoute. The same for exit.
To see if your broker is doing that, run reltimeforex's or Dukascopy's platform next to yours.
What if you get reqoutes after reqoutes when you want to exit your trades or can't enter a profitable trade? Can you imagine the pips you are going to lose ?
I learned my costly leason with USD5'000.00.
Spreads are important if you have a broker who is not going to make additional profit with your order nor trade against you. Otherwise I do not mind being charged 5 pips spread if I can get my orders being executed instantly; especially during news release.
I now use 4 different brokers for different strategies. Also for security, not all the eggs in one basket.
Highway

If Highway drops a ten cents coin on the floor, I will look for it and pick it up.

I agree with Highway that there is additional criteria to selecting a Borker but the question was ...
"how important is the spread on your criteria list???"

It used to be important when I was scalping. Ever since I moved to longer timeframe (4hr +), it's not anymore.
The most important for me is moving stop to 'be' asap without killing the trade.
I agree with highway on requoting.
If you see that on your platform too often in a slow market, it's time to move on.

Hello Highway3000,

Had a look at Dukascopy, the demo account is only for 7 days, do they close it then or is there a way of having it longer ?

Looks a good site but accounts are too large for me

Some of them have a deviation, so you can set to exit with a certain deviation, let's say 2-3 pips. It won't move so fast 3 pips. So you can exit.

This might be the HG I've been looking for, can you post some screen shots and a full list of all the indicators you use. I've still got around 10% of my screen empty and been trying to find a good indicator to fill it up with
Peter

1) fill my orders as I determine the boundry violations. NOT requote me during volatile periods keeping me out of the market until the time is "just right"............. for the broker.
2) close my orders when I ask them to be closed.
3) be a registered member of the FCM and CFTC. i.e. legitimate.
4) Nice platform, user friendly and tight spreads.

Spreads are very important and their importance varies with your style of trading.
Good luck.