How to choose a suitable broker - questions to vet them?

Broker Discussion Forex Brokers
1

Hi all,

Is there a list of questions that anyone has put together to vet their chosen brokerage? That would be very useful
I’ve no idea how brokerages work in terms of commissions, whether they will work to a minimum return per month (%.)
My concerns with any brokerage service is their motivation to both make money for themselves without being reckless with my money - striking that balance is crucial.

Any guidance appreciated.

2

Maybe you can ask these questions:

  1. How do they protect your funds?
  2. Do they have international certification standard in information security?
  3. Are they a fully audited brokerage?
  4. Are they serving worldwide?
  5. Have they earned prestigious award and received international recognition?
  6. Are their platform created by traders who are also frustrated with the limitations of other brokerage platforms?
  7. Do they provide free professional coaching and trader tools?
  8. Do they offer any free practice account?
  9. How long will they take to approve new accounts? It should be fast, within 20 hours
  10. Do they provide quick and easy funding and withdrawal options?
  11. What is the minimum deposit? My broker offers USD100.
  12. Able to trade micro, mini and standard lots under a single account?
  13. Do they offer more than just Forex? How about metals, oils, commodities CFDs, major indexes and global equities?
  14. Are they a dealing desk or a Straight Through Processing (STP) broker?
  15. Do they offer superior trade execution with absolute tightest ECN spreads?
  16. Can we request for leverage up to 500:1?
  17. Are they using the award winning MT4 trading platform? Can trade from web browser and mobile device?
  18. Do they offer excellent customer support so that it is easy for us to reach them?
  19. Are they a licensed and regulated broker? Make sure they are regulated by the Financial Services Commission (FSC)
  20. Do they offer swap free, Shariah compliant accounts to those who prefer it?
3

Thanks a lot!

4

Hi Vincentas

Just a couple of sub notes to No 19 above by Mikepip1

a) carry out due diligence on the prospective company
b) under FSC regulation carry out background checks and due dilligence on the primary individuals within the company to ensure they have not carried out any activities that break the FSC regulations or regulatory body(ies) within your country of residency