Newbie wants a broker

Broker Discussion
1

Hi!

Completely new to forex and trading in general, based in the UK but living elsewhere in the EU at the moment. I am looking for some brokers to try a demo with, from what I’ve learned so far I need the following:

  • reliable + secure
  • mini lots
  • low deposit limit
  • low leverage
  • good for medium and short term strategy
  • lets me withdraw small amounts easily whenever
  • instant trades when I click?
  • clear interface

(I know some of these criteria don’t matter for a demo but I don’t want to get used to a platform I can’t use later on!) Looking to set up with £200-£300, trading about 10p a pip to begin with.

Thanks!

2

What’s your reason for wanting low account leverage, seems rather contrary?

3

Because at least initially I’d rather risk losing amounts I can afford? losing £10 on a 10p gamble (/speculation) makes more sense to me rather than £100, at least until I’m sure what I’m doing

I understand the potential for gains is also smaller.

Anyway any advice is appreciated, like I say, very new to everything so interested to hear different opinions

4

With low account (maximum allowable leverage, not actual leverage used) you won’t be able to trade such small positions. You want to be looking at an account with the highest possible leverage (this doesn’t mean you have to use it ALL, but it enables you to trade small positions relative to your account balance ).

Before I go off on a tangent away from your question, high leverage is not bad as you don’t have to actually use it - it certainly gives you a little more breathing space when trading/speculating conservatively

2 Likes
5

Good day,

A good option would be to do extensive research on available brokers, and cross-reference your findings. Ensure that they are registered with all the required government bodies, and do your due diligence on the country itself. The legislation differs from one territory to another, so ensure everything is in order.

Good luck!

6

And that is what allows someone to trade with $500.00 at 10 cents a pip, and learn to trade without blowing out their retirement account.

The Ever Saluting Risko VIPER

2 Likes
7

Good day,

A good option would be to do extensive research on available brokers, and cross-reference your findings. Ensure that they are registered with all the required government bodies, and do your due diligence on the country itself. The legislation differs from one territory to another, so ensure everything is in order.

Here is an article we think will be of use: How to Choose a Forex Broker

Good luck!

8

I use OANDA, and I grow happier with them every day. As a U.S. trader I am handcuffed by my government and very limited on who I can use. You may have more options. If I had my way, I would use Dukascopy. But here in the land of the free, my government decides for me.

If you are like me, and a U.S. citizen, the only real choice is OANDA. Hope this helps.

1 Like
9

Sorry, I didn’t read your post very well. It appears you are in the UK. I would still start out with OANDA and go to Dukascopy of some other NDD broker after accumulating a larger account.

1 Like
10

Check Octafx, I think it’s good. I have no complains about them since last 3 years. Anyhow, you also need to know that the select of broker is simple and that’s with regulated and reading views. It will find you good broker.

11

Hi stevee, I’ve always wondering why it’s so difficult (if possible at all) for EU brokers to accept US residence as retail clients. I believe you can share some thoughts about the US government regulation in that regards? Thanks ;)!

12

When I was a newbie I wanted to get a broker who help me to trade in small positions. That’s why I was looking high leverage facility in my broker. For me high leverage facility is not a bad thing at all. It helps a trader by giving space while trading. Also spreads are equal important to me. Because spread is the amount in which profit making depends a lot.

13

Do a search on the web for FATCA, and you will get some idea. Beyond that, the retail FOREX market is relatively new to the U.S. So the knee-jerk reaction for the government here is to limit it. When more brokers to get involved with the U.S. market, I think we will see more industry lobbying, and ultimately we’ll see looser regulations.

Just my perception.

1 Like
14

Thanks for your reply steve. I did some Googling and it makes more sense now :slight_smile:

15

Both Gain Capital and OANDA were opened in the 90’s, so you are talking about 20 years, so the retail end of Spot Currency Trading in the US is a pretty mature business. As far as regulation is concerned, here is the big change
http://www.cftc.gov/PressRoom/PressReleases/pr5883-10

This was 2010 when it was enacted, before that, well it was the wild west, 100:1, 500:1, 1000:1 leverage, programmed slippage and delayed fills and quotes, horrible re-quotes, brokers/market makers not segregating clients funds, etc. This had nothing to do with how long or “new” to the US Retail Spot Currency Trading had been around, and everything to do with the trader getting abused, and generally ripped off.

Six years ago, you couldn’t swing a dead cat without hitting a “FOREX” market maker/broker. Now, not so much. Back then anyone could be an IB, me, you, anyone. Now if you want to be an IB, brokers require one to have at least a Series 34, which by the way only costs $80 with no sponsorship needed. Again this was in response to the horrible abuses taking place at this time.

A side note, if you like you can follow this link, and it will explain why FXCM has been banned from the NFA. Learn Why The NFA Barred FXCM And What It Means For Forex Traders

As far as "more Brokers Getting Involved, well they have already been and gone, and I present as exhibit A and B the following.

A. US Forex Dealers See Continued Decline, Opening Up Fresh Lows | Finance Magnates

B. US Regulators Victorious: Forex Dealers Data Hits All Time Lows | Finance Magnates

The incentive for most people to try Spot Currency trading was, back in the day when there was almost no regulation, the 100:1 leverage, the thinking being, "I can make 100k a year with just 10k invested, 60 days later the 10k is gone and the next sheep comes in to be sheared. This industry was selling a unicorn fantasy, and it was a never ending churn of uninformed, hopefuls, who never had a chance. Once that incentive was taken away. Well the whole thing collapsed.

Yes, the regulations caused some of the decline, but bottom line, at this time, there are not enough people that can trade to keep the retail business open to hundreds of Broker/Dealers.

So I hope you find a trustworthy broker.

The Ever Institutional VIPER

16

Exactly…

Low Leverage is for rich people.
High Leverage is for poor people.

1 Like
17

Hello Krate,

Welcome to the forum. Here’s what we offer compared to what you are looking for if you would like to test our demo:

  • Mini lots are available, as well as micro lots so you can customize your position size even beyond mini lots.

  • The minimum deposit in the live account starts at $50

  • Up to 200:1 leverage is offered on forex and CFDs, but I think you would find most traders don’t use nearly that much leverage. If you want to limit the leverage used in your account, simply limit the position sizes you are willing to open in relation to the amount deposited in your account. For example, if you want to use a maximum of 5:1 leverage and you have an account balance of 1,000, then you would limit total account exposure on open positions to 5,000 (5 mini lots).

  • Funds can be withdrawn at any time by logging into the MyFXCM client portal. All live accounts have access to the portal to withdraw funds, deposit funds, or update account information.

  • The Trading Station platform is what most clients at FXCM use, and you’ll find from other traders on the forum it tends to be very popular. There’s also an option to enable one-click trading if you want to place trades as quickly as possible. The default setting is ‘click and confirm’ meaning an order window appears and then you click again to submit the order.

I hope that helps, and good luck on your trading journey.

Jason

Risk Disclaimer: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds.