Hello everyone, this is my very first post and I am really eager to learn more about Forex Trading. So far the School of Pipsology is helping me a lot to understand the basics, and I’ve come to the point where I have to choose a broker.
I know I have to start with a Demo Account and I will, but I also want to get used to a broker I might use for my live account in the future. So I want to try three of four brokers to see which one suits me the best, but I have no idea where to start. Most of the features I take into consideration to choose an specific broker won’t be shown on a Demo Account so I was hoping someone here at the forums could give me some advice on which brokers to try, taking into account that:
-I am from México
-I’ll start with a $500 USD account.
-I want to make some trades throught the day/week (not scalping but not holding positions for too long also)
-I am not sure if I should use a MM or ECN account (Which one would work the best for me?) which broker offers me the most suitable account type for me?
-I want it to be regulated by a good regulatory agency
-Easy and Cheap or No Fee withdrawal/deposit options (Debit Card/Paypal)
I was thinking on trying brokers like FXCM, Oanda and Pepperstone, I’ve searched for the features mentioned above on this brokers but I’m feeling overwhelmed and confused with the amount of information, I feel like I can find everything but the thing I’m looking for.
I would really appreciate if anyone more experienced than me could help me with this matter. Thank you!
The task ahead of you is called [I]due diligence[/I] – it basically means carefully gathering and evaluating the facts that are important to you. Due diligence is a very personal undertaking, and therefore nobody can do it for you. You just have to roll up your sleeves and get to it yourself.
You’ve already made a good start – you’ve listed the important considerations. And you’ve indentified 3 brokers that you want to screen using your list of requirements. So now, the job comes down to checking each of the 3 brokers against your list of requirements. That task will not be as difficult as you might think. Almost all the answers can be found in the brokers’ websites.
I can help you with a few answers to your questions, but then the rest of the burden will be back on you.
I’ve added comments to the items in your list.
-I am from México
All 3 of your prospective brokers accept clients from Mexico.
-I’ll start with a $500 USD account.
All 3 of your prospective brokers offer at least one type of account for which a $500 initial deposit is adequate. Study their websites for the details.
-I want to make some trades throught the day/week (not scalping but not holding positions for too long also)
This will not limit your choice. Your intended trading style is perfectly acceptable to all 3 brokers.
-I am not sure if I should use a MM or ECN account (Which one would work the best for me?) which broker offers me the most suitable account type for me?
Some traders insist that an ECN account is the only type that you should consider. I don’t agree with that view. In my opinion, you will have a perfectly acceptable experience with Oanda’s dealing-desk account (the only type they offer), or with FXCM’s micro account (the only one you can open with a $500 initial deposit). Neither of those brokers will trade against you – which is the allegation typically made against all dealing-desk brokers.
-I want it to be regulated by a good regulatory agency
All 3 of your prospective brokers are regulated in their home countries – FXCM and Oanda by the CFTC and NFA in the U.S., and Pepperstone by the AISC in Australia. Most traders would agree that those are “good” regulators (but, [I]good[/I], like [I]beauty[/I], is in the eye of the beholder). You will need to investigate whether U.S. or Australian regulation would apply to your account in Mexico, or whether your account would come under Mexican regulation. I don’t know anything about forex regulation in Mexico, so I can’t advise you on this question.
-Easy and Cheap or No Fee withdrawal/deposit options (Debit Card/Paypal)
Study all 3 of your brokers’ websites. If the deposit/withdrawal options in each case are not clear to you, use the broker’s Chat feature or email to ask your specific questions. Don’t be shy about contacting these brokers (or any other broker you want to investigate) via chat, email, or phone. Their customer service people are there to help you. Contacting them won’t obligate you to anything. And they won’t trick you into doing anything you don’t want to do.
Good luck with your research. You are being more thorough with your due diligence than many of the newbies who come through here. So, congratulations for that!
Thank you very much Clint! All that information is really helpful, that’s actually what I needed, just some general answers that give me enough to start my own research about brokers.
I will do further research on this three brokers and contact them to get more in-depth info regarding the topics I am considering to choose them.
Check out this it will help you in demo or live account. YouTubeYouTube
freshforex is also decent. Suggest you to read basics about technical analysis before opening up demo account.
Can get you a good referral bonus, so it can be as stop loss amount kind of. The lowest minimum lot is good for the beginners so you can spread these positions and spreads are relatively good with these brokers. Here is the min. OANDA $1 position, Pepperstone .01 lot, FXCM 0.01 lot.
I hope that you already have chosen the right broker as of now…! I better suggest to practice demo account for some time before going to live account and once you decide to go live then try to start with small amount in order to check either the broker you going to trade with allows you to withdrawal or not. Good LUCK!
There’s plenty of brokers out there. Start with a demo account initially and it doesn’t really matter which one you use for that. Don’t bother with a live account until you are consistent on demo