What are the most important factors when choosing a Broker?

How do i find a non dealing desk broker, i’ve heard the term, but never thought it was that important. I am with FX Solutions but i’m not sure if they have a non dealing desk or not, but i will check.

Thx

Not sure why this ended up here, hope for a reply

Yes, stop hunting can and does happen but don’t dwell on it. As mentioned already they tend to do it where the masses place their stops, right at key support and resistance levels. They won’t start going into individual accounts to see where YOU specifically placed your stop and pick it off. When and if it happens with your particular broker, it happens to the masses at the same time. So, if you happen to use these areas as stop levels just give yourself a little more breathing room. In other words, instead of placing your stop 5 pips beyond a key level, place it 20 pips or something to that effect. I trade off the 4 hour and daily charts and i find that 20-30 pips beyond the main level is more than enough to keep you from being “hunted”

the spread on the NFP! :slight_smile:

I read on another forum that most brokers would stop hunt individually. Read this link if you’re interested.

I have to say I lost a lot of trust and confidence since I heard about stop hunting.

I haven’t had a practical experience on the forex yet. I am still a beginner.

But after a lot of reading, I think that one should not choose a broker according to his size or capital. The market makers “make a market” for the individual traders. You don’t really have access at the interbank market. Whenever you buy, the broker sells, and vice versa. So the brokers has a big capital, guess where that comes from? Probably money they made from their customers.

I’d rather pay a commission on every lot traded, rather than a commission hidden in the spread (“free commission”). So I’d be sure how much the service costs me.

I tried some non-dealing desk brokers. Since the brokers only transfer (and do not requote, or manipulate the price) the prices, you get sometimes spread as little a 1 pip. Unlike market makers, who manipulate the price and give you single quote on bid /ask, you get a few different ones with a non-dealing desk.

It seems though that the software is less sexy than that of the market maker’s. For example, the two demo I downloaded do not have a charting package included. But then, I could get that somewhere else.

I am still a beginner and I do not have a practical experience in the forex market. If you’re looking for those non-dealing desk broker, do like me: Google it.

So-called pip hunting, if it occurs, is only a problem for scalpers and very short-term traders - or traders who put their stops way too close to the market price. My strong personal feeling - and I’ve been trading forex since before it became the sexy thing to do - is that stop hunting is used by a great many traders to place the blame elsewhere when they lose money.

To get back to the original question of this thread, some of the important things you need to look at when selecting a broker are:

[ul]
[li]Account minimum deposit (if any)
[/li][li]Transaction size flexibility
[/li][li]Spreads
[/li][li]Execution/Slippage
[/li][li]Commissions (if any)
[/li][li]Security of deposited funds
[/li][li]Allowable leverage
[/li][li]Currency pairs available for trading
[/li][li]Usability of the trading platform
[/li][/ul]

How you rank the above is a personal thing.

The most important factor when choosing a retail forex broker is to make sure your broker is in a jurisdiction where the retail forex is properly regulated and in good standing.You also might want to look at their reputation. You don’t want to pick a small broker, but rather an established broker that is well known and has a good company history,such as Oanda,FXCM,and other like that.

The problem with using a “Non Dealing Desk” broker, is you lose the fixed spreads and the guarantee of no slippage.
Which is the lesser of 2 evils?:rolleyes:
Thanks
Sherry

I think it’s important to note that any guarantee of no slippage from a dealing desk broker is not a 100% guarantee. Check the fine print of their application documents. They will quite happily slip you when it suits them.

I think in the future we’re going to see the non-dealing desk approach gain more traction and really take off. You only have to look at the world of stocks and futures to see to see what the future of spot brokers will look like.

hello, doest it means MM (delaing desk or non dealing desk) must agaist us(trader)?
it seem like not MUST …
can u explain detail. Y it always agiast trader?
Thanks
:smiley:

What brokerage would you recommend that doesn’t do this? I’m new and would like to start out with such a company.

I live in the US.

The most important factor for me is the SPREADS. I use etxcapital. love it but FXCM …the spreads are tighter. I wonder if there can be a mix of FXCM and Etx capital. I like etxcpaital as they are user friendly and the layout is good but I also like FXCM beacuse of the tight spreads. :slight_smile:

Here are some tips when choosing a broker:
babypips: forex broker guide
forex office: How to choose a forex broker
I think the topic is sufficiently depleted in these two articles.

This is not really true:

  1. Stop hunting is done by widening the spread, this is done either by people (sometimes on commission to do so) “Dealing Desk” Or it is done via software “NDD”, with which you would set a price distance that the computer could “span” so as to hit a stop.

  2. ECN does not mean that the broker is not betting against you, it means you pay commission based fee instead of spread integrated fee. ECN by actual definition means that you would be filled by other traders, in practice this is extremely rare, in fact I have not found one that actually does this with out 3k per month fee… So ECN in most brokerages means the fee structure of an ECN service. But, the great thing about ECN is that all broker tricks are blazingly obvious when you only see the raw spread, the larger the spread the more a broker can hide his tricks, and there are many.

I am a authority on the subject, this is not conspiracy theory, nor should you argue this. this is fact, I am director of Pellucid FX Offshore Forex Brokerage. I know the tricks, I have the standard brokerage software, and in fact, in my brokerage, all tricks settings are turned to “off”

For me the most important is the promptness of deposit and withdrawal procedures. Among other factors are trading conditions: minimum amount of deposit, maxumum leverage, spreads, swap, etc. I also take under consideration the existence of as many as possible contact means.

It’s impossible to determine what’s important for me, you or the guy next door. Each one of us requires different aspects and decisions should be based on research according to your trading style.

I’ve trade and making money in liteforex broker, they never against us and they are very fair…

There are lot of important factors to consider when choosing a broker. First, we should look into the broker’s review to see if they have good history and record. secondly, the broker should be reliable and reasonable when it comes to services and trading conditions. In addition, they should be saved and secured in terms of segregation of funds. I did a proper research and went through review before I started trading with profiforex, and I can’t help but to say I’m really satisfied with their nice services they offer there, especially their charges that is not hidden. All the commissions and fees are clearly stated in (Trading condition page).

Of course, choosing a broker is a really hard task and there are a lot of factors to be considered. It’s a trial and error until you find the one’s suited for you. And I’m glad after a not so good experience with 2 brokerage at last I am working satisfactorily with loyalforex and 1lotstp.

I think the main thing we should care about a broker when we go to choose a broker that the broker should be regulated and should be registered . If broker is not regulated then we should not choose this broker. I would recommend 1LOTSTP Forex broker if you like then you can trade with this broker.

It is like chosing a spouse. Some are perfect some are not, maybe perfect is not for you.