What are the most important factors when choosing a Broker?
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  1. #1
    Join Date
    Mar 2006
    Location
    Sacramento, CA
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    5

    Default What are the most important factors when choosing a Broker?

    I use CMS right now and I love their charting software, but they can be unstable. Sometimes they crash and i can't enter orders in, so i think i'm going to look for a new broker. what should i be looking for in a broker? any recommendations would be greatly appreciated!

  2. #2
    Join Date
    Mar 2006
    Posts
    4
    I'd have to say that the most important factor 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.

    Also make sure they don't stop hunt

  3. #3
    Join Date
    Mar 2006
    Location
    USA
    Posts
    14
    I agree with liztrader... go with the larger brokers. I also recommend brokers that have trading desks you can call into to make trades. I think all brokers stop hunt to a certain degree, so stop hunting shouldn't be a big factor.

  4. #4
    chasingFX Guest
    Explain stop hunting for us less fortunate folk, if you could. Appreciate.

  5. #5
    Join Date
    May 2006
    Posts
    126
    Yes, please explain what is stop hunting.

    Also, I would go for established companies/brokers to do the trading for me, the ones with reputation. Investing money is not a joke and you should entrust it to somebody who are reliable and credible. So, I would say, go for the brokers who are already known to have lasted, with good management and who are credible, too.

  6. #6
    Join Date
    Apr 2006
    Posts
    48
    Yes, first, make sure they are registered and regulated. Second, the spread on majors shouldn't be more than 5 pips. Third, you have to make sure their execution is up to speed. However, to check that, demo isn't going to do. You have to get a real account. As far as stop hunts, I will not even go into that... lol.

  7. #7
    Join Date
    May 2006
    Posts
    126
    Make sure you register in a large broker with proven record of reliability.
    Make sure of the broker's credibility and they must have a very accessible support desk.

  8. #8
    Join Date
    Nov 2006
    Posts
    12

    Default Stop Hunting

    When a broker stop hunts, they look at peoples' accounts and find where many have placed their stop losses (usually they are around important support and resistance lines). The broker then, because they have the power to manipulate their quotes, goes in and makes the price hit the stops, closing many trades, to the loss of the traders and the profit of the broker.

    Because, as everyone should know, the broker usually hedges against you and makes money when you lose yours. If you don't like it, switch to an ECN instead of a Market Maker (broker).

  9. #9
    Join Date
    Nov 2006
    Posts
    11
    Hello everybody,

    I am too a new baby in forex trade.Was trying to get a good broker.Do anyone know about forex.com.Are they good.Actually what happend is that I had already spend some time understanding their sotware and that was before I knew babypips.So to save myself starting with another software, your feed back will be appreciated.I have a demo account with them.

  10. #10
    Join Date
    Dec 2006
    Posts
    4
    Quote Originally Posted by chasingFX View Post
    Explain stop hunting for us less fortunate folk, if you could. Appreciate.
    Stop hunting is when your forex broker moves their quote simply to hit their customer stop orders. Remember, unless you are trading with a non-dealing-desk broker, they are trading against you, so when you sell on a stop, they are buying. They have complete price control.

    FXChant
    Singing the world of forex

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