Choosing a Forex Broker


Now their reputations. Hard to argue whether the company positive reputation. And if so, on what grounds can be judged. Alas, neither the presence of prestigious awards, or high in the ratings in this country (and not just ours) are not indicative of a good reputation. This is just a question of money. But the presence of a negative reputation (deceived clients, lawsuits, etc.), you can find out easily enough, using a search of the Internet and specialized forums.

Working conditions are always important.

Qualitative work conditions traditionally include: accurate quotes and competitive spreads, trading with guaranteed execution of pending orders, a modern trading platform, a wide instrument, interest on commercial deposit customers.

In the matter of quotations preferably immediately check with your broker, from which he receives them. Typically, such sources may be information systems such as Reuter, Bloomberg. Remarkably, if the finance company can confirm the right of retransmission contract prices. This means that it does not steal. It happens that the dealing desk (especially if it is Russian) receive quotes directly from its western broker. Periodically in the quotes flow from any broker happen "outliers", ie, nonmarket transactions clearly above or below the current price. These emissions can be very damaging to the open position of the client (for example, covering it with a large stop-loss order). It is desirable to find a broker in the regulations or in oral conversation, as such emissions are filtered and filtered if at all, as well as regulated disputes arising from the non-market prices. Reputable brokers usually void all transactions through the release and return loss loser and cheat customers profit is earned.

Spread. Usually beginners forex broker when choosing first of all pay attention to the value of the spread. A-brokers, in turn, lured customers catchy advertising, they say, "Once we spread on ... followed by the name of the currency pair ... from one point and below." Experienced traders know that solid and reliable broker is unlikely to dempingovat in this area, and so meticulously relate to the value of the spread. Although, of course, very few people like to pay more when you can pay less.

More important is the execution. Around guaranteed execution of pending orders are highly controversial. Some have argued that the brokers to ensure the execution of orders, take on more risk than the brokers who work with such a slip. Without going into the debate, I want to note that the guaranteed execution of pending orders when dealing with a reliable Internet broker - a great benefit for the client. Here is an example. Imagine that before the release of unemployment data in the U.S., you tear off two identical positions on the euro / dollar price of 1.21 in two dealing centers. One broker has a guaranteed execution of pending orders, and the other - no. Fearing the release of positive indicators and, as a consequence, growth of the dollar, you put a stop order to the two positions at, say, 1.2. After the data is that unemployment in the U.S. fell much more than analysts had expected, and the exchange rate immediately drops to 1.19, that is, to use the language of traders, "makes the two figures." In a dealing center stop order is triggered, and you commit hundred points loss, and in the other you have a losing position is 200 points. Moreover, it may even increase if the rate goes lower. Of course, such situations are rare, but, however, occur, and this may result in the loss of significant (if not all) of funds. That is why the issue of guaranteed execution of pending orders is much more important than the size of the issue spread.

Trading platform and user experience

The accepted standard of the trading terminal for Forex brokers are:

availability of free demo account (ie the opportunity to practice on virtual money, test the trading strategy).
graphic support, the possibility of technical analysis or export data to a technical analysis system (Omega, etc.).
operational reliability and low demands on the user's computer and Internet connection speed.
An important consideration when choosing a broker is the wealth of tools that is available for customers to trade. It is very important to try your hand at different markets, with different tools and conditions. Many brokers offer the ability to trade currencies other than synthetic instruments such as contracts for difference (CFD) on U.S. and European stocks. And some companies, for example, "Kalita-Finance" and "Yumis" - even for Russian stocks, global indices (Dow Jones, DAX, FTSE100, etc.), gold, oil and so on.

Another important point is the interest on the funds in the account client, and the ability to trade discrete lots. But the generally accepted standards for the largest Russian brokers are:

Laundry news support for clients in the terminal.
Daily analyzes market currencies, stocks, indices, metals.
24-hour technical support.
The presence of a personal manager for major clients
Thus, a good broker is made up of several important elements: reliability, good trading conditions and comfort. In the Russian market is working a lot of companies and banks, which are a combination of these criteria. I hope that my advice will help you to decide with your guide in the world of finance and avoid common mistakes when choosing a broker in the Forex market.