Newbie looking for a broker

Beginner Questions
1

Hello,

I’m interested in learning and eventually trading currencies. I’ve been looking around at different brokers and I’m really quite lost.

Initially I was going to go with Interactive Brokers however I’ve learned that most fx brokers don’t actually have a fixed commission charge. They claim that the fixed commission allows them to guarantee ‘very low’ spreads yet they don’t really show what the spreads are. I looked at Oanda and the site shows the current spreads - not something Interactive does.

I’m also looking at Interbank FX, which seems to be decent, however I can’t really seem to get my head around the whole “minimum size” that seem to be defined on every broker’s site except Interactive Broker’s. When I tried the demo for Interactive, the ‘regular’ lot size for GBP/USD was 17k!!! when I tried to enter a smaller order, they said it would be entered as an ‘odd lot’ and could not guarantee a fill. Are all brokers requiring such large order minimums?

I understand a bit, the difference between a dealing desk and ECN/STP. Basically the dealing desk is a market maker, with prices ‘created’ in house relative to liquidity providers. These guys typically trade against you. They mostly operate with fixed spreads.

ECN/STP have variable spreads and some of them also charge commissions.

Coming from trading stocks, I know that finding the lowest possible commission rate is often most desirable. However the variability in FX between the commissions, spreads, worries about spreads being bumped up — all raise concern to me.

I have a full time job, so I won’t be able to day trade between 7am - 6pm. My starting equity will be between 5k and 10k. I guess i’m looking more to swing trade and not so much scalp. Trades would probably last a day to a week, maybe a month at absolute most.

Should I go with Interactive? Interbank? I know some people also suggest FXCM and FXOpen.

Also, I’d like to use MT4, since i hear it has good reviews and features, but I suppose it isn’t terribly important yet.

I know I’m asking a lot, but I really appreciate any suggestions or pieces of advice offered.

Thank you very much,
Rainmonkey

2

Go with oanda , the best broker anytime.
You can do lot of 0.1k to practically no limit…
You can check review anywhere , you will find good… except news hours… when ask/bid is up to 10 pips.

3

Im with oanda also, their demo account doesnt expire so you can practice until you get it right but im still looking around myself before i make my decision. i read Zulutrade is pretty good but thats autotrading.

4

from what I’ve read, the biggest problem with Oanda is that the spread tends to widen during certain time periods. That and that there have been some problems with Java running on their site. (i may be mistaken tho)

I was looking at IBFX, seems like their average spread for EUR/USD is 2.08, while the spread at Oanda is 10… that seems like a big difference. Or am I reading these wrong?

6

Hello there I just wanted to share that I am also trading life with AAAfx and zulutrade:22: and apart from the profit that they make for me, they have an amazing customer support - always there in case of problems! I currently reside in Cameroon and so far have not experience any oversea’s problems. Overall, very satisfied with my broker, now even more that they are backed up in these turbulent financial times by one of the strongest to become banks in SE Europe. :22:

8

not only that they execute all trades well, same stand for withdrawals, as well. I got my cash wired in my bank account within 4 days!! I really like these guys a lot!