A Forex broker question

Hello,

as a beginner, do I need to look for the Forex broker with the lowest spread?
or do I need to find the most easy to use broker platforms?
any suggestions?

Thanks

Hi tradingtfp, in my opinion you need to look for a broker that 1. you can trust with your money, 2. has low spreads for the major 8 currencies and 3. has the trading infrastructure to deliver an excellent trading experience like the MT4 platform.

The babypips.com sponsors are a good place to start looking for a broker that has the above 3 qualities

This not quite as simple as select one you trust who offers the lowest spreads.
Not all, but in most cases when you come across threads or posts start with this " the broker is a scam, forex is rigged, how come I never win threads etc." You find these posts all over forums and this is why. Of course some are true, but most are traders who didn’t take the time to make sure the broker they selected was offering what they needed Selecting the right broker you will hear and see; Great Broker, great support, with drawls no problem, I’ve dealt with them for years and never had a problem etc".
Try this and see if you get better results.

  1. Make a broker check list. You want to do this because not all brokers are not equal. Your broker check list should be made based on what type of trading you are doing, your knowledge, starting bankroll, personal characteristics and is good practice that you can draw from when you write out your trading plan as well as making any decisions. When you write down what you are looking for, it becomes a lot easier and quicker to disregard the info that doesn’t apply to you and store info that does. For example if you want to be able to apply a scalp strategy, then the first thing you want to do is make sure the broker you select allows scalping some don’t. If you are scalping you want to choose a broker that doesn’t charge commissions, swap fees and in most cases offers : straight through processing non dealing desks, ECN’s as well you want to stay away from market makers.
    Good news is you can do this very quickly by going to this site and search a lot of brokers what they do and don’t offer by filling in the blanks as they apply to you. Once you’ve done that you go to compare brokers and fill in those blanks so you can compare all the brokers that offer what you are looking for and you can pick the best one of that group.
    Forex Brokers Comparison

There is an additional bonus by filling in the blanks to search and compare brokers. Each fill in the blank will offer you choices Don’t guess or quickly fill in. Take some time look up what the choices are. For example, If you check out broker type, your choices will be banks, independent brokers, introducing brokers. Take a minute and see the difference between them, again no the difference between Market makers, DMA’s, STP, ECN.

Once you have selected a broker, next go to your search feature and type " Broker X reviews." You’ll get lots of information on the broker, some good some bad. Again don’t just skim through take a minute and digest what the reviewer is saying. While going through this process, you can check out your brokers support by asking support questions, see how long and if they get back to you and what they say. I emailed a broker support and told them MT4 doesn’t work on their trading platform, they took 2days to get back to me and say, that is not their problem it’s a software problem. I sent the same email to support with another broker and they got back to me same day and said it works you just have to store the files somewhere besides the program files. Suport also provided me with MT4 support site and said if I have any problems get back to them. See if the company has a rep who’s active on baby pips or another sites forum. This is good because you will pretty much always get an answer sooner than later.

If you go through this process when selecting a broker, you still might have problems but it’s much less likely and at the end of the day, no matter what we’re trying to do, we want to put as many probabilities on our side as we can. Hope this helps
Gp

if you still are a beginner, you should find a honest broker and open a demo account in starting then open a live account with small deposit. Since a beginner is easiest to get cheated by a broker so a honest broker is really needed.

I would add to the same, you need to sort through all the brokers and you can review them on the basis of what they offer, the spreads, how reliable is the broker and the platform. And of course, do review the reviews, no pun intended.
Currently I use three brokers from fxcm to tradersway and it took me a while before I settled down with this three. So check all the brokers out, contact them, set up a demo and do a test, and you should be able to sort the brokers…

The most important is how a broker deals with you, the factors mentioned by you are important but there are many factors involved in selecting a broker.

These are broker I think good for newbie trader:
Minimum deposit and acceptable spread:

  1. HotForex ($5)
  2. Exness ($25)
  3. FXCM ($50)
  4. Forex4You (cent account $1)

Definitely you should look for a forex broker who is offering lowest spreads. Almost any platform what you will choose is going to be easy usable.

how low is low, lets say eurusd? i trade with hotforex they have i guess about 1.8-2.2 spread

I think beside lowest spread you should take into account following things: 1. spread 2. commission 3. regulation 4. ECN account - market execution. Don’t trade with brokers who offer instant execution. 5. order execution speed 6. requotes

As the rule that newbie trader will lose their money in a long rune so I think a small initial deposit broker is a good choice for newbie trader. Spread is also important since it can affect your performance.

Finding a good broker is a challenge to new traders and also finding a broker with a lower spread as well, I have traded with profiforex and I still have my capital. Oanda is another nice platform I know of.

I agree and at some point upsetting for it’s hard to decide which broker exactly fits our needs without trying to open an account with them and see how their services works.

I am curious how you think we can find a honest broker. I am saying this because if you look at reviews of many regulated brokers, you will find a lot complain about withdrawal, spread manipulation and platform freezing. Regulated brokers spread the rumor that unregulated brokers are scam brokers, whereas they are the one that has the baddest reviews. If you look at a few Offshore brokers, you will find how satisfied traders are with their services and withdrawal system. So I think when talking about honest brokers, regulation does not count. A new trader must find out how satisfied other traders are with a particular broker and make a decision based on that.

you can say all brokers have their con and pros, what we trader should be looking for is not the perfect broker coz it doesnt exist, but instead we look for a broker that have lots of pros and less cons that we can deal with. for example easy and secure withdrawals, good execution etc, I never believed in a broker that says the BEST! but good brokers is the one we should be looking for.