Interesting discussion topic!
As you have found from your own experience trading with a cheaper broker won’t necessarily make you profitable: How do reduce the unnecessary trade?
It seems from your previous posts as though focusing on the spread might be tempting you to trade more than you should.
We do not understand what you mean by this. Are you testing a new trading account with a broker that has a different spread?
Spreads are important for the reasons you listed. With all things being equal (regulation, service, platforms, charts, resources), you want to know you are getting a good deal with your trading costs.
However, it’s important not to be so focused on the spreads alone that you ignore the other important factors in choosing a broker. The most important factor is regulation.
Recently, there have been several discussions on this forum highlighting the dangers of trading with unregulated brokers:
Forex is regulated by government bodies in major financial centers around the world. For traders who live in those major trading centers, it makes sense to focus on brokers regulated in their home country.
Traders who don’t live in one of those countries should consider brokers regulated in major financial centers appropriate for their region. For example:
- In the US, forex is regulated by the CFTC and NFA, and brokers are required to maintain net capital of $20 million.
- In the UK, forex trading is regulated by the FCA and funds are protected for up to £50,000 per client by the FSCS.
- In Canada, forex trading is regulated by IIROC and funds are protected for up to $1 million per client by the CIPF.
Once you have focused your search on the well-regulated brokers appropriate for your region, then you choose the one broker based on other important factors including service, platforms, charts, resources and spreads.
Where to you live, @saintKLASS_1201?