Hello, I am currently in the process of finding a suitable broker for testing a couple of expert advisors.
I assume the broker must have the following properties:
support MT4 (as majority of automated forex robots are EAs running on MT4)
broker has to allow EAs (I’ve heard that some brokers do not allow EAs or forbid their use after the trader uses EA for some time)
broker has to allow scalping (i am looking into a scalping EA to test…)
for the start I can fund an account with approx 5k EUR, but the broker has to support micro or custom lots, as i don’t want to blow my account too early
spread as tight as possible and execution time as low as possible. I have read about ECN brokers and about them being suitable for scalping, however I have heard that they are not good for trading around the news… What do you suggest here, ECN, STP, DD broker?
broker has to be regulated by the one of the regulatory agencies (CFTC,NFA,FSA, etc.)
I live in european union, and besides my mother tounge I only speak fluently english. Therefore I assume it would be wise to choose a broker based in an english speaking country (UK,US) in case I would have to make any phone inquiries, but on the other hand, probably also brokers in Swiss or Germany would provide English support. What are your experiences regarding language barriers? Another issue is wire transfer of money to the broker and the commisions (provisions) that come with it. Do you think there are different commisions between EU-US transfers and EU-EU transfers?
all in all I would like to have a reliable and fair broker. At first I thought that agency regulated brokers are reliable, but after seeing a couple of threads regarding agency brokers being sued for counterfeiting their customers (for example, FXCM), I am not as trustful anymore. The problem is, however, I just cannot find any reliable sources that list reliable brokers, but reading the school of pipsology and this forum I’ve gained a trust in this site, so I would be grateful I you could point me to some reliable brokers or reliable source of info regarding brokers.
These are the criteria,I would be grateful if you could point me to any suitable brokers or any further info. Also, please write If you think there exist more criteria I should add.
I know that choosing a forex broker can be a difficult task, and there’s a lot to consider.
Regarding FXCM, we do offer MT4 with microlots and we accept all EAs or trading strategies with our No Dealing Desk (NDD) forex execution. Our traders are able to scalp, trade news, or trade any EA they want because we’re not making the market for forex transactions.
We automatically take quotes from 10+ liquidity providers and display the best bid/ask price with our pip mark-up. This means that FXCM does not control the prices you see on the screen or where the market is moving. When a trader clicks on a price, they are actually clicking on a price from the bank with the best buy or sell price, plus our markup (which essentially acts as a commission). The order sent to FXCM is immediately executed back to back with one of multiple banks or financial institutions. Since every order is hedged one for one, any profit resulting from your trade is not a loss for FXCM and any loss resulting from your trade is not profit for FXCM. There is no conflict of interest between FXCM and our traders on NDD forex execution, but this may not be the case when you are trading with a dealing desk broker acting as the market maker.
A dealing desk broker, which acts as a market maker, may be trading against your position. If your broker is acting as the market maker for your transactions, then they are managing the risks associated with your trading positions. If they choose not to hedge that risk (meaning they choose to trade against their clients), then a loss on your trade could result in a profit for the brokers dealing desk. This presents a conflict of interest since it would then be in their best interest for you to lose. When you start actively trading or trading profitably with a dealing desk broker, you may run into issues with requotes or delays in order execution like orders getting manually approved by a dealer. FXCM is not making the market for forex transactions therefore you can scalp, trade news, or trade any way you want without having to worry about requotes, dealer intervention, and no restrictions on how close you can place stops or limits to the current market price…
FXCM is regulated in multiple jurisdictions including in the US through the NFA and CFTC and UK through
the FSA, and we’re also a publicly traded company so information available about FXCM is likely much more transparent then what you will find with many other brokers. I would be happy to help address any questions or concerns you have.
Hi PA
You should easily find brokers who meet your clearly defined criteria.
The issue seems to be finding a reliable broker, but what is reliable ?
Obviously nothing is perfect.
Combine not perfect with a broker who is handling your money.
When a leveraged not perfect kicks in you will consider the broker is not reliable. One reason why there are so many brokers.
The only person who can answer your question correctly is yourself and those lessons will cost you.
Factor it in as an overhead. Master risk management and you’ll be fine. Without it you will need incredible luck. Invest in yourself PA you are worth it. Learn to trade successfully and then if you want, make your own EA, some brokers will code them for you.
I hope this helps you on your journey, good luck.
PacManPip.
