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Thread: How to examine a broker?

  1. #1
    Junior Member
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    Default How to examine a broker?

    Hi,
    I have found an interesting article, feel free to read it.
    Successful use of scalping is directly depending on your broker. Experienced traders choose brokers very carefully with consideration of many factors.

    The first factor, is the spread on the traded currency pair . Most of the brokers give the information about spreads on traded currencies on their websites, but I would recommend to check the spread before you start the trade. I would check the spread on a real account ( you have to open real account, but you can quickly close it and therefore check how quickly you can withdraw money). For a spread checking I would recommend the advisor developed by BJF Trading Group Inc. You can download it here: FX Trading | FX FORUM • View topic - Free Metatrader Expert Advisors for free.

    Also, if your broker is ECN, check all the commissions in order to make sure that a broker won’t “eat” all your profit.

    Than I recommend to check the execution speed. In order to do this you have to place your advisor to trade with minimum lot and estimate the time interval between the starting time of sending order and it’s ending time. Go to the folder of log files C:\Program Files \metaTrader\logs\ and look on the log file.

    Example :
    00:56:26 '1003718': order sell market 0.20 USDJPY sl: 0.000 tp: 0.000
    00:56:27 '1003718': request was accepted by server
    00:56:27 '1003718': request in process
    00:56:27 '1003718': order was opened : #1635944 sell 0.20 USDJPY at 91.180 sl: 0.000 tp: 0.000

    We can see that advisor made it’s request for opening 00:56:26 and order was opened at 00:56:27 – good work.


    You have to also analyze all the teaks around particular order. It will help you to discover manual intervention. Broker can “throw” quotation in the stream of quotations in order to beat your “stoploss” or to give you maximum worst price. That’s why exploring of teaks will make everything clear. Analyze 10-20 orders.

    In the future, when you will pick a broker and start the state, I would recommend you to analyze every order. On the website BJF Trading Group Inc. (section Tools) , you can find an instrument AuditTool, that will help you a lot in analyzing orders. And an instrument was created from the will of brokers’ company and was tested by chief dealer.

    So analyzing of spreads ,speed and teaks around a order, will give you the full understanding of your broker. I recommend Micro, Mini, Standard & ECN/STP forex broker - Currency forex trading online – this is Canadian partner FXOPEN picked by me for

  2. #2
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    Default How to examine a broker?

    The analyzing of spreads ,speed and teaks around a order, will give you the full understanding of your broker. I recommend Forex-Micro, Mini, Standard & ECN forex broker-Currency forex trading online – this is Canadian partner FXOPEN picked by me for the scalping. The only disadvantage of it is that the broker is not registered in NFA, even though most of USA brokers transfer their clients to other jurisdictions to escape NFA regulation.
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  3. #3

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    I also recommend calling the phone support to see if it really exists.

  4. #4
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    I think that is an interesting article. You are great you have shared it with us. In the future, when you will pick a broker and start the state, I would recommend you to analyze every order. Thank you!

  5. #5
    sabrinathomas
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    Having confusion to choose a right forex broker then you have keep some points in your mind when you pick any broker, spreads, trading platforms, order execution speed, order execution accuracy, margin offered, online support, their analyst team. These are most important points as per my opinion.

  6. #6
    Junior Member GationLi's Avatar
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    Default

    and in any case try to choose non ecn broker

  7. #7
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    for long term trader:
    - interest rates
    - leverage

    for mid term trader
    - spread

    for short term trader
    - spread
    - execution time
    - spread during news

    - platform is not so important, because if you trade for profits, you must (can) trade with all kind of technics to nail up your profits (java/oanda, metatrader, tradestation)
    - analyst team, a retail trader is always his/her own analyst, if not then start again with learning forex
    - support team, if have mastered your system, you dont need any support, if you found some execution/order issues, change the broker
    - test and master your system always with nano lot broker and real live account, loosing small money is the best way to learn fast - loosing demo money doesnt really hurt

    my 2c

    IX
    IXBONE
    Business Internet Services | IX Trader Forex Software
    Registered Internet Service Provider (Ripe: AS 16195)

  8. #8
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    Hello @ all,

    ixbone said everything!

    I have good experience with alpari (uk) and marketiva. But at the end, always compare your trading plan and the service of the broker - that's most important. And try to get one with fund-security, like the one in UK or Europe. That's all :-))

    Regards

    crissfx

  9. #9
    kevinjones
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    Our number-one concern is of course the safety of our deposits, and the honesty of our broker. The guidelines to be followed in seeking a safe broker are simple and straightforward. Although you can do your own due diligence in finding out about a firm’s background by checking online forums, asking questions to the firm itself, and contacting the authorities, you must know about in all cases two things. Do government authorities regulate the firm? Second, does it implement state-of-the-art technologies for ensuring the safety of your funds and transactions from unauthorized access? Usually, a broker will have a disclosure statement in the “About Us” section of the site, and at the bottom of every page stating its membership, and its being subject to the regulations. In Europe, each nation has its own regulatory body. The UK has the FSA, while Germany, Cyprus, and the Netherlands all have their own regulatory institutions. Make sure that they regulate your broker. Never open an account with a firm that is not regulated by a recognized body, however tempting its offer may appear to be.

  10. #10
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    As per my opinion to choosing the brokers and the right broker.For that you have to keep some point in the mind.First of all you have to check the trading formulas and the background of that broker.The other thing you have to check the order execution accuracy, margin offered, online support, their analyst team

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