Home Trading Strategies 7 Things To Look For Before You Choose a Forex Broker

7 Things To Look For Before You Choose a Forex Broker

7 Things To Look For Before You Choose a Forex Broker

hey hey what’s up my friend so in today’s episode I want to talk about how do you choose a Forex broker so you don’t get skinny so just the thing right I know that many of you new to trading you’re worried about you know putting real money out there because you know who can I trust right what if the broker runs away with my money what if the broker you know hands my stop-loss alright what if the broker you know is unreliable right how do I choose a broker so in today’s episode I want to share with you seven things seven things to look for before you choose a Forex broker number one you want to make sure that your Forex broker is regulated and not just regulated as a loosely described term you want to make sure that they are regulated in the right countries the three countries that I look for right is either Singapore Australia or UK the broker has to be regularly regulated in one of these countries because I find that the regulations in these three countries right are one of the best out there if it’s not in any of these three countries I will usually just skip it skip it right and move on to something else all right call me buyers right but I find that these three countries the way they run their finance industry right it’s really straight right in terms of compliance I’m based in Singapore and I find it the Monetary Authority of Singapore they do an excellent job right in protecting the retail investors and traders so no more one right make sure the broker is regulated right in the appropriate countries number two when you choose a Forex broker you have to be aware of the markets that they are offering as well I know most of you trade Forex but at the same time you won’t treat other markets as well not just Forex maybe stuff like oil soybean oil cocoa orange juice pork bellies whatsoever and many forex brokers they just simply offer you FX market maybe a few common commodity like you know oil and go but if you want more right trading all the exotic markets right then you have to make sure that did forex broker of yours right or at CFD broke of yours it offers more than just FX if it doesn’t meet the criteria you have two choices right number one find one that meet your niche or number two have to different Booker’s want to trade exotic markets and want to trade Forex right so whatever the case is be aware of the markets that your Forex broker offers not all Forex broker offer similar number of markets so be a be aware of that number three live support right and this time in age right communication is almost instantaneous so for any business day of the way I expect a life support with the broker so gonna have any issue I can just log on to the website and talk to someone and you know find out what’s the problem what’s the issue and how I can rectify it okay I don’t want to be just emailing because email is too slow right so most brokers these days or if they are legit they offer life support and we know walk you through the issues that you might be facing and number four we draw right I think this is one of the most important factors right we draw when I ask for a withdrawal I want my money back as soon as possible I don’t wanna hear excuses from the broker like oh you little money with another one more month we will give it an extra ditional 200 all up deposit bonus blah blah blah if you hear excuses when you want to take all your money run far away because that’s a huge red flag when you want to withdraw your money it should be boom that’s it right within two to three business days you should get your money back I mean depending on the medium of the withdrawal but there should be no excuses right the money should come back to you ASAP number five reviews right so reviews is a it’s a little bit tricky here because you have to understand in the broken industry right it or any competitive industry it’s very common for competitors to smear one another so you go to this type of you know what I call it review platform right and say bad stuff about the competitors bla bla bla so as someone right who is reading reduced you’ve got to be smart about it right you’ve got to kind of read in between the lines right so a few tips here for you right so when you read reviews right I finding the most genuine reviews are the ones that are long right in the multi paragraph right – paragraph 3 paragraph because those are from people right who are GNU genuinely either very happy or very frustrated with the broker so the longer the review is right the higher chance that it is a real review because it is a fake review it’s just we don’t one or two line in that’s it right there’s nothing more else that it can say because it is a is it a genuine review but if it’s a real reviewer they will spend paragraphs after paragraphs you know pending down your frustrations you know their anger whatsoever whatsoever and that’s how you separate no real and fake reviews and when I look at reviews right also I pay attention to two things all right I want to make sure that the broker and whether I don’t have many issues right off we troll because if you read a broker reviews and you find that most of the complaints I know with people you know having difficulty with growing their money that’s it’s not a red flag right if people are having difficulty pulling on their money then chances are you know when you put money with that broker your money is likely to get stuck so the first thing I look for is again whether the reviews right a lot of the complaints is it about weed roll or is it maybe some superficial stuff like know maybe just poor customer service or the people being rude and stuff like that those are the ones that would affect me too much the other thing I look for is traders saying that they are getting stopped hunted right already on the Sprint suddenly wider and it gets stopped up for no reason if that is a recurring theme right then again that is something that I want to be careful of as well all right so that is about reviews right this is how you actually go about it or reading the reviews of the broker that you want to trick with and number this one number one two three four five number six transaction cost all right so if you are I would say if you’re a higher time frame trader transaction cost wouldn’t really matter to you as much because these days brokers yeah idea spreads right are relatively low but if let’s say you’re a scalper a day trader then yes transaction cost would matter to you a lot because there are some broker that offer you let’s say a commission plus a really really tight spread of let’s is 0.

1 or 0.2 people and if you do the the math right the Commission that you pay plus a really small spread right is actually cheaper then just pay you know one or two people play but without Commission because if you do the math right the Commission plus a small spread is actually cheaper than just pay a big spread if you do the math right you will see you work out so let me give you an example let’s say a broker offers you know hypothetically I know whenever you treat once then the Lord right you buy let’s say that’s a $3 Commission charge when you sell let’s say there’s another three dollars and because you have this Commission base pricing here right your spread is only let’s say 0.

1 pips so if you do the math right $3.00 plus $3.00 plus 0.1 peeps right $3 is actually 0.3 peeps right when you trade one standard lot so 0.3 peeps plus 0.3 pips plus 0.1 pips that’s in total of 0.7 peeps when you buy and sell a position let’s say one lot of Eurodollar but let’s say you go with another broker that offers you a fixed one pip spread on euro dollar you can see that you’re actually paying 0.

3 peeps more than the other broker that offers a committee or Commission structure along with it so you got the total cost and see which one is cheaper or more expensive and this really matters especially if you are day trader trading 2030 times a day or this all this little spread all this picture ends up to a significant amount after one month two month three months and number six right now to share this with you is that how do you actually protect yourself from from a broker if something really does go wrong let’s say you know you get stopped out of a trade that you otherwise shouldn’t have been stopped out so what you want to do is to to protect yourself right your the screenshot the tree there you did right there got stopped on the chat of the trader got stopped out right let’s say this particular broke earlier with right the spread expanded 50 pips and you know stopped out where’s you look at the other platform despite didn’t occur so you screenshot both charts right of two different platforms right you know you have a case to argue with why am I getting stopped up on your platform whereas you know the other other platforms that I look at the spine didn’t occur so now you have a case right and if there is any resolution you can take it to social media right if you know when things is legit right when you want to help the underdog right people would share for you right and that would really no help the broker to make things right for you because now there’s reputation and stick to protect themself right so that’s one way you can go about it right the other way just you know can go straight to the authority wherever the brokers regulator like mes and you know denims you know hey this broker is you know not dealing with you fairly era era usually brokers that are serious for their business the one to keep their license they don’t risk losing a license over you know some someone’s complete right so you’ll do the best again right to fix things right for you so that’s how you can protect yourself right from you know if anything does go wrong okay so I know I’ve covered a lot about brokers you know in this training video and if you want recommendation right I’ll put one in the link below this video you can check out a recommendation if it’s good right you can feel free to sign up with it if you don’t want that’s perfectly fine as well so that’s it I wish you good luck and good trading and I will talk to you soon you


Please enter your comment!
Please enter your name here