What are the most important factors when choosing a Broker?

[ysg]

I’d have to say that the most important factor is to make sure your broker is in a jurisdiction where the retail forex is properly regulated and in good standing.

You also might want to look at their reputation. You don’t want to pick a small broker, but rather an established broker that is well known and has a good company history.

Also make sure they don’t stop hunt

What brokerage would you recommend that doesn’t do this? I’m new and would like to start out with such a company.

I live in the US.

[forexprodiva]

The most important factor for me is the SPREADS. I use etxcapital. love it but FXCM …the spreads are tighter. I wonder if there can be a mix of FXCM and Etx capital. I like etxcpaital as they are user friendly and the layout is good but I also like FXCM beacuse of the tight spreads.

[artad]

Here are some tips when choosing a broker:
babypips: forex broker guide
forex office: How to choose a forex broker
I think the topic is sufficiently depleted in these two articles.

[hissst]

@jonjon5000

When a broker stop hunts, they look at peoples’ accounts and find where many have placed their stop losses (usually they are around important support and resistance lines). The broker then, because they have the power to manipulate their quotes, goes in and makes the price hit the stops, closing many trades, to the loss of the traders and the profit of the broker.

Because, as everyone should know, the broker usually hedges against you and makes money when you lose yours. If you don’t like it, switch to an ECN instead of a Market Maker (broker).

This is not really true:

1. Stop hunting is done by widening the spread, this is done either by people (sometimes on commission to do so) “Dealing Desk” Or it is done via software “NDD”, with which you would set a price distance that the computer could “span” so as to hit a stop.

2. ECN does not mean that the broker is not betting against you, it means you pay commission based fee instead of spread integrated fee. ECN by actual definition means that you would be filled by other traders, in practice this is extremely rare, in fact I have not found one that actually does this with out 3k per month fee… So ECN in most brokerages means the fee structure of an ECN service. But, the great thing about ECN is that all broker tricks are blazingly obvious when you only see the raw spread, the larger the spread the more a broker can hide his tricks, and there are many.

I am a authority on the subject, this is not conspiracy theory, nor should you argue this. this is fact, I am director of Pellucid FX Offshore Forex Brokerage. I know the tricks, I have the standard brokerage software, and in fact, in my brokerage, all tricks settings are turned to “off”

[SamForexTrader]

For me the most important is the promptness of deposit and withdrawal procedures. Among other factors are trading conditions: minimum amount of deposit, maxumum leverage, spreads, swap, etc. I also take under consideration the existence of as many as possible contact means.

[SavFX]

For me the most important is the promptness of deposit and withdrawal procedures. Among other factors are trading conditions: minimum amount of deposit, maxumum leverage, spreads, swap, etc. I also take under consideration the existence of as many as possible contact means.

It’s impossible to determine what’s important for me, you or the guy next door. Each one of us requires different aspects and decisions should be based on research according to your trading style.

[robocop77]

Stop hunting is when your forex broker moves their quote simply to hit their customer stop orders. Remember, unless you are trading with a non-dealing-desk broker, they are trading against you, so when you sell on a stop, they are buying. They have complete price control.

FXChant
Singing the world of forex

I’ve trade and making money in liteforex broker, they never against us and they are very fair…

[Bob5star]

There are lot of important factors to consider when choosing a broker. First, we should look into the broker’s review to see if they have good history and record. secondly, the broker should be reliable and reasonable when it comes to services and trading conditions. In addition, they should be saved and secured in terms of segregation of funds. I did a proper research and went through review before I started trading with profiforex, and I can’t help but to say I’m really satisfied with their nice services they offer there, especially their charges that is not hidden. All the commissions and fees are clearly stated in (Trading condition page).

[BeeGeez]

Of course, choosing a broker is a really hard task and there are a lot of factors to be considered. It’s a trial and error until you find the one’s suited for you. And I’m glad after a not so good experience with 2 brokerage at last I am working satisfactorily with loyalforex and 1lotstp.

[Keith504]

I think the main thing we should care about a broker when we go to choose a broker that the broker should be regulated and should be registered . If broker is not regulated then we should not choose this broker. I would recommend 1LOTSTP Forex broker if you like then you can trade with this broker.

[MrGone666]

It is like chosing a spouse. Some are perfect some are not, maybe perfect is not for you.

[aiken]

It is like chosing a spouse. Some are perfect some are not, maybe perfect is not for you.

Agreed with this. And when you found that special broker you should be loyal in your relationship.
commitment and dedication will be valued.

[Exness_Support]

Check on These Factors

1. Regulation by financial authority
2. Fast Deposit and Withdrawals (better if local)
3. Tight Spreads
4. Enough Leverage
5. Multiple Trading Platforms
6. 24*7 Support in Your Preferred Language

[mrjacky]

i see it right. we must choose the good broker . it will help us protect our fund

[pips4x]

“IMPORTANT” is different for different traders. Some prefer quick withdrawals, some prefer low spreads, fast execution… they all need to be regulated. So for me 1st the broker needs to be legitimate enough, have been around for a few years, legitimate address and phone number, low spreads and offer ecn acc

[aneah]

Check on These Factors

1. Regulation by financial authority
2. Fast Deposit and Withdrawals (better if local)
3. Tight Spreads
4. Enough Leverage
5. Multiple Trading Platforms
6. 24*7 Support in Your Preferred Language

Agree with each of the items, and what about fast execution? Noone wants to make an order with one price and get it opened/closed with another price.

[aneah]

[QUOTE=Exness Support;622145]Check on These Factors

I think this item must be at least second in this list.

[alickacton]

I totally agree with you Exness Support. These all factors are really important to choose a perfect broker.
Keep it up. Good luck.

[anon5370623]

When it comes to broker selection I always focus on these points:

Internet feedback;
Fpa Scam Folder
Personal tests
Legal documents (client ToS)
Withdrawal options and speed.

Currently I test Hotforex, they have several legal agreements, still can’t sort it out. We can’t underrate its importance, if something wrong burst support always address to their docs, that’s why be serious after that…

[Cable]

I checked what everyone says and i also agree. I also bump in to this question before and most of i found was almost same. Must be regulated, easy to use deposit and withdrawal, tight spreads, etc… and most of i found was they advice you to go with big companies and when i search it, you will also find a lot of negative things that makes your decision much confusing. With that in my experience, i figured why don’t i just try it. i started with the one that my friend was using. But luckily, i was satisfied with the broker even it was small, young and not popular broker. My point is that even the broker has a good service and reputation, you will never find out if they are right to you unless you try it.