We want a broker with as little commission as possible. A friend of mine ask me this question… My friend do stocks right now… and he just want to learn about forex and see what it’s all about.
Any other advice will be greatly appreciated!
Since you are a trader, why don’t you recommend the broker you use. Are you using a broker that has high commission? And also you can teach him about forex. Meanwhile, direct you friend to FPA and the likes.
I think, it is important to devise a good trading strategy. As you may already know commissions only matter if someone is scalping or trading very frequently. For profitable investors, I have yet to see commissions making a big difference to overall results. It will be better to ask him to learn about Forex and see what trading style suits him. Also, STP or EC/STP will charge commission whereas Market makers usually don’t charge such commissions. This doesn’t mean MM are better than ECN. I hope he understands such things before trading live in Forex becasue Forex is different from stocks.
IMHM I strongly suggest you to find ECN/SPT broker over MM broker, using google to find out why
Well, the problem is that in this forum, Pipzilla is always after forum users who answers your type of question. Whenever you mention a broker, it is as if you are advertising them. So, we can’t recommend brokers here anymore as you can see. I’ll suggest you use FPA or Earnforex, that is where you will see the likes of Oanda(low commission), FXCM(not bad commisssion), Profiforex(very low commission), Hotforex(can’t tell) etc… just to name a few good ones out there. And talking about commissions, you should also know that commissions are placed as spreads. So, even if a broker does not have a fixed commission, they are usually charged as spreads
Most of the brokers charge commissions for ECN account wannabes, not that they are real ECN but they would like to give the impression that they are the real deal. So you may want to review the brokers, figure out if they are real ecn, then move on to check out their commissions, etc.
I don’t see why a new trader should be using ECN accounts. Brokers that are not Market makers and yet offer ECN accounts charge more than market makers. I would not advice anyone to trade via Market Makers either. A simple STP broker would be best.
Would suggest that traders avoid market makers and on ECN/STP both should do the trick and no, new traders can move on to ecn later on, after some exp…
You should trade with STP/ECN NDD broker, regulated and has good feedbacks on everywhere Internet. FPA is a good site to review a broker.
I already instruct him to register here, Do a self study on Forex, Babypips has a ton of information (school,forum, blogs and forexpedia) I already recommend my broker, about the broker with low commission, i want him to settle for himself.
Even though I have some experience, I actually do not want the trouble of market makers. Trading with a market maker is like competing against the big players in this market and you don’t want to do that with limited fund.
Amount of funds hardly make any difference if trading with a market maker. Furthermore, there is no proof to verify if ECN/STP brokers are better than market makers considering that dishonest brokers can even manipulate STP accounts. However, it seems true that retail Forex is moving towards straight through processing. I would suggest reading reviews of brokers and trade without worrying too much about the type of broker. Once, you get big into trading (large lots) then consider direct market access.