What is the most important feature you need from your forex broker ?
Please Vote Above
Low spreads, no requote, allow news and scalping trading and little to no slippage
Personally I wouldn’t look twice at a non-regulated broker.
Tight spreads and free deposits are nice to have, but I am willing to pay a little bit more in these areas if the broker really shines in some other areas.
I would like to vote for free deposit and withdrawal, and regulation.
I would say spreads. Why? Spreads is something that directly impacts the client. If you have $0 deposit and withdraw fees, excellent customer service, a whole bunch of trading platforms, flexible leverage conditions, but quote a 3 pip spread on EURUSD and higher for crosses and exotics, that’s an automatic deal breaker.
Regulation doesn’t necessarily mean clients are better off. FXCM has been screwing over clients for like forever and the NFA isn’t doing much other than layout a few fines here and there. FXCM is a repeat offender. If you are a repeat offender for street level crimes, what happens? Now if you are a repeat offender for white collar crimes, what happens? On the other hand, take an unregulated broker like Trader’s Way, you don’t hear any serious complaints now do you?
i see some broker has low spread. special the market excution. they had float spread following the market
Would you go to an unlicensed doctor to save money on medical treatment?
The biggest concern with an unregulated broker is the lack of accountability and financial transparency. Spreads are important, but it’s important to consider whether saving a few tenths of a pip is worth putting the whole account at risk.
Below are just some recent examples:
[B]Crown Forex[/B]
“Although some people with accounts were still able to get their money out at this early stage, many accounts were not refunded… [I]the company had no authorization from the SFBC for any activity in the financial sector in Switzerland.[/I]”
Unfortunately, that wasn’t the end of the story. A couple of years after going bankrupt, the people from Crown Forex were at it again, this time helping others become unregulated brokers.
[B]JadeFX[/B]
“fraudulently solicited and misappropriated more than $3.2 million from more than 500 customers in the United States and throughout the world to trade forex… [I]None of the defendants has ever been registered with the CFTC.[/I]”
Traders simply have to look at Forex Peace Army to see the difficulty traders encounter when trying to get a dispute resolved when there is no regulator providing oversight. While spreads are important, they are just one factor out of many to consider when choosing a broker along with customer support, regulations, trading platforms offered, education, resources, broker financial stability, etc.
Well, let’s add FXCM in there as well. How about keeping money that should’ve been forwarded to clients and then only fix the problem when regulation bats an eye? I highly doubt the latest $200,000 hurt FXCM big time or even small time. What makes us think that FXCM will be an honest dealer here on end?
This is an example of regulation in action. There is regulatory oversight and when mistakes occur, we work with our regulators to ensure the correct processes are in place to protect our clients.
Do you think that unregulated brokers follow the same rules that FXCM follows being regulated in 5 jurisdictions. That’s a very high level of trust when a traders money is on the line. Traders have enough to be worried about with their own trading without having to worry about their broker where regulations provide that additional oversight.
It’s unfortunate that events such as this The Collective FX GLOBAL-trading name of BDG Financial Services Ltd. - Page 2 occur too frequently but it’s the risk traders take in going with unregulated brokers.
I wouldn’t exactly call passing losses to clients and keeping profits for yourselves a mistake. Now given that there are several regulated firms, FXCM consistently catches the spotlight of the public. Ok so you touched upon the consequences of an umregulated firm, what about regulated? PFGBest is a good place to start showing regulation failimg to protect clients. Now assuming that regulations are effective, then why is FXCM the only firm that has trouble complying? I don’t see other US brokers (Atc, TS, TVFX, IB) constantly in the spotlight.
To clarify, mistake was in reference to not submitting trade data in a timely manner. But you are correct that not passing on price improvements to clients was not correct. FXCM clients have received price improvements on orders since 2010, and FXCM is currently one of the only firms in the industry to give price improvements on market and limit orders.
From August 2013 to January 2014 alone, more than $15 million went to FXCM traders as a result of price improvements. We also provide stats on our website that displays how frequently orders experienced slippage during the referenced time period:
The full report can be found here.
Every trader should ask their broker if they are eligible to receive price improvements. Additionally, if they experience re-quotes, does a re-quote ever occur in the traders favor.
Execution standards, financial oversight, business practices, etc. are all the types of things regulatory oversight sets standards for. Trading with an unregulated broker may introduce risks that result in the unfortunate situations listed in previous posts.
id say just knowing they will treat you well
According to my scale of preference; features I need which am currently enjoying from my broker Profiforex is; Tight spread, free and instant deposit and withdrawal, high leverage of up to 1:500, Professional support which is available 24/5
I find it interesting that tight spreads is the most important aspect of selecting a broker. At this stage in the game pretty much all brokers have reduced their spreads to a point that they no longer are a factor in trading. For the majority of traders and brokers all broker spreads are within a few frac pips of each other.
In my humble opinion clients should be looking at customer support, honesty of broker, and trading platforms. Just my opinion though.
I would go with free and instant withdrawal. Does exness offer that?
I will go for regulation . When a broker is regulated it gives you that sense of security.
Credible regulation. Not some half pass six regulator from some countries that shield their members and let them get away with small fine and not protecting investors.
I totally agree.
No slippage, no requote, fast payment, tight spread.
Tight spreads for me is the most important. And thing missing here is quick order execution. These two things are required for effective scalping and this is what I used for choosing my broker.