How to Choose the Right Broker
There are hundreds of Brokers trying to get your business. The importance of choosing the right broker for your style of trading and risk appetite is paramount. Using the same strategy or system at different brokers will not necessarily deliver the same result. There are a few important factors to base your decision on. They are:
- The reputation and size of the broker
- The business model of the Broker, e.g. DD, STP, ECN, DMA, etc. (ECN or DMA recommended)
- Regulated by a reputable Financial Services Board
- The maximum leverage allowed. Can be anything from 50:1 to 500:1 or more.
- The size of the Spreads and/or Commissions (See real-time Spreads of leading Brokers)
- The minimum amount of Equity required to open an account
- Execution Speed when doing a transaction
- The type of trading allowed, e.g. Scalping, Hedging, EA’s, etc.
- The size of their margins required when placing pending orders, stop losses, profit targets, etc.
- Bonuses offered on sign-up
- The type, quality and speed of customer service – especially on withdrawal of money
- The Platform(s) supported, e.g. Metatrader 4
- Offering free VPS service?
We also like to refer you to http://www.forexpeacearmy.com/public/forex_broker_reviews for their reviews and ratings on brokers.