Hello everyone,
i’m moving from binary options trading to forex trading and i have some questions:
I’m looking for good broker that will allow me to trade via [B]MT5[/B]. Can you please recommend me that kind of brokers?
Also it’s very important that the broker will accept webmoney , It’s the only way i can transfer money.
and fonal question , I read about SPEARD but i still doesn’t understand what it is and how it’s effect my trading. I understand that i need broker with low spread , but why? which other thing i have to know before start trading and how am i chosing the best broker for me?
I don’t know about brokers but I can help you on the spread question.
A pair have two prices:
- the bid, which is the price your broker is willing to buy from you
- the ask, which is the price your broker is willing to sell to you
The difference between the two prices is called the spread. If you BUY a pair, then close it (=SELLing it back to the broker) before the price changed, you will still loose a bit of money because of the spread. Basically you will pay the spread to your broker for every trade you make.
Traditionally the broker use a fixed spread, it would be for example 2 pips on EUR/USD.
But now the brokers offer accounts like ECN which have variable spreads, i.e. with a spread moving depending on market behavior. The spread would be in average lower than the fixed spread account.
The spread is important if you make a lots of small trades. If you make 20 trades with 10 pips profit each, and your spread is 2 pips, you loose 20% of your money.
If you trade daily chart and make only one big trade a month for 200 pips, it is less important, it would be only 1% of your gain.
I’m trading 1D to 1H time frames.
not scalping , not making a lot of trades because of the big TF.
does it mean that the spread is not very important to me? (2 pips spread for a winning 50 pips trade is not a lot …)
I’ve edited the end of my last post to give a clear example.
If you trade higher timeframe your are probably willing to open a traditional account with fixed spread. If you know which pair you will trade, just compare the fixed spreads of the brokers that may interest you for these pairs. It is less important, but it is still money lost, so look at it ^^
When you choose your broker, one important thing is to check the broker is certified by some regulatory agency, otherwise you may never see your money back 
you probably want to read this:
6 Most Important Things to Consider When Choosing a Broker | Brokers 101 | Kindergarten
in your example , i will lose 20% of my PROFIT but still have 80% PRFIT left right?
it’s like a comission , am i right?
Where can i see recommended brokers? i hread that there is A LOT of scams .
Yes, it is like a commission per trade. But brokers sometimes have other kind of taking your money, payment per month, taking a % on deposit, or a % on withdrawal, having a fee on account creation, anything is possible. Be sure to read carefully the condition of service they offer.
When I chose my broker I simply spent time googling until I found some converging reviews. If the broker is certified by an agency it should not be a scam.
I heard that brokers also hunting your stops , in reality the stop didn’t activated but the broker that i trade with changed price so that they can take my money.
basiclly i’m trading against the broker , he wants my money and i want his, but he has more power than me.
what can i do?
I am not sure about that being true. Everybody have SL at different places, your broker cannot change the price just for you. Maybe the level were many traders would place their SL can be hunted, but not only by your broker, it’s called a fake-out.
Some people use EAs to close their trades at their desired SL, instead of using a normal SL. This way the broker doesn’t have the info. IMO it is a bit paranoid.
IMO the broker doesn’t need to do that to get money. He is getting money from the spread. If you are a new trader you are loosing money most probably, and the broker gets your money without doing anything special. If you are a good and profitable trader, he can always take the same positions as you on the genral market to cancel out your profit.
Ok , So my problem now is to find reliable broker that has low spread , allows me to trade via MT5 and has WEBMONEY for a deposit and withdrawal.
Thank you very much!!
By the way , i heard that there’s brokers that you HAVE TO levarage your trade with them. ( more potential for a lose).
is it true?
I am not sure what you mean. You can find a forex-wise definition of leverage here:
Leverage and Margin Defined | The Number 1 Cause of Death of Forex Traders | Senior Year | Undergraduate
Leverage multiply the consequences of your trades both in a good way (profit) and a bad way (losses).
Broker generally have a maximum leverage criteria, for example 200:1. But you can still choose to open your account with a 50:1 leverage.
Do not use a leverage too important, it is dangerous, read the school section I linked above.
Thank you very much , I will read again the SChool.
One last advice: open a demo account.
Go to a real account only when you have a solid and long tested trading methodology/system.