Choosing the Right Forex Broker

hello my name is Ben Nathan from The Daily Florrick’s call now for new traders and seasoned traders are like choosing the right broker can be very difficult in fact after a long term relationship with our party after the Swiss National Bank removed their floor and verse the effect from that was a Tulpa he went into where administration I myself have also been you know experienced at the the long-term task of finding the right broker so I’m going to go through a few simple things in terms of what to look for now the first thing first and foremost we need to see in any broker at good signs of regulatory compliance now a flashy or professional smooth looking website doesn’t actually guarantee that the broker has any form of regulation now if you go with an unregulated broker but there’s nothing there to stop them from potentially running away with your money it’s a big risk you take so regulated brokers it’s a must now we’re going to concentrate on the the euro / European Union so you know France England Germany Sweden etc etc all of those euro countries will have a couple of potential regulations now the main one you’ll see is a c-sec which stands for the Cyprus Securities and Exchange Commission another one which if you’re in the UK easy FCA and ultimately what these regulatory complies agencies are there to do they’re there to make sure that brokers aren’t breaking the law now if it broke does break the law or get caught up generally you’ll be able to find a notification about on the regulatory body website and we’re going to go through that a little bit shortly so the main thing is you know don’t go for the flashy website go for the the regulations okay so I can’t stress that enough if you don’t go with regulate broker you should be very concerned so the next thing to really consider when choosing the right break it is is the account details now each forex broker has at different accounts offerings so the one thing you’re going to see is leveraging margin so forex traders have access to a variety of the leverage amounts depending on the broker so you’ll see things such as fifty to one or two hundred to one or or even 500 to 1 and what leverage is it’s essentially alone that’s extended to the margin account holders by the broker so let’s use fifty to one as an example so if your leverage is fifty to one if you’ve got an account size of one thousand dollars you can actually hold a position that is valued at fifty thousand dollars so leverage can work in your favor with winning positions since the you know profit potential is enhance however it can very quickly destroy your account since the potential for losses is also leveraged up so if you’re going to lose you that leverage user with caution and I never consider opening account anything more than a hundred to one and I always recommend use as little as as it’s possible so another part of the account details is commissions and spreads so of course the broke is there to make money it’s on the one hand they are it’s in their favor to make sure your account run smoothly because each trade you take they will take or they’ll make a small amount of money through commissions and spreads so the longer your account keeps growing the more money they make so think of that as you know something to bear in mind so to the Commission’s a broker will use commissions who uses commissions i’ll charge you know a specified percentage of the spread so the spread of course is the difference between the bid and ask price of a Florrick’s path and you know that’s that’s where they’ll make their money with wider spreads so for example the spread could this could be fixed so let’s say a broker’s gotta fix spread or five pips on the euro dollar now that means you know that’s that’s not going to change however part of that spread will be factoring in and the the broker’s commission on that so that’s something to bear in mind so keep an eye on spreads if you’re a day trader

or a long term trader and you don’t particularly to worry about thick spreads but if you’re a kind of a short term trade or a scalping or anything like that or trading around hiding pat releases you really need those fixed spreads to keep your account sake of why she’ll get tossed around in the markets and see trouble okay so the next thing is initial deposit so most Forex accounts can be funded with a very small initial deposit even as low as fifty dollars with some now with leverage of course your buying power is much greater than the minimum deposit anyway which is one reason why forex is quite attractive to new traders so many brokers offer standard mini and micro accounts with bearing initial deposit requirements you also need to be aware of the ease of deposits and withdrawals so each forex broker will have specific account withdrawal and funding policies and you can generally fun needs online with a credit card or a bank transfer sometimes even PayPal and withdrawals are typically made by by a bank transfer and you know some brokers may charge a fee for that service so to be aware of that so the next thing to to be aware of is what currency pairs is your broke offering so you need to be aware of you know what you typically trade so take a look back at your history on previous accounts and work out what you need now of course there are lots and lots of different currencies available for trading only some get treated with the attention or the greatest liquidity course you’ve got the major dollar pairs which are the most liquid so you need to make sure they offer the pair’s in which you’re you’re interested in okay so next along is customer service of course forex is a 24 hours a day and market so the brokers customer support should be available at any one time now a key consideration here is how easy can you speak with a live person rather than going through the time consuming and frustrating and kind of email type services so whenever you consider a broker you should do two things first you should give them a call and you’ll get the gist just asking lots of questions and you’ll be able to asking the kind of questions that we’ve gone through already in this video and just get an idea of their ability to answer your questions and also how willing they are to answer on top of that if there’s an online chat test that chat service as well you need to test a customer service before you invest before you go ahead and start depositing money and finally the trading platform so the trading platform is your portal to the markets so you need to make sure that the platform and any software that you use is easy visually pleasing and has a tools that you need to trade so the good thing about the way i trade is that i’m not reliant on indicators and I trade a fairly clean charts with just some daily pivot lines so any platform is good now also if you find the perfect broker but the trading platform that you want isn’t there now you don’t need to worry so much because let’s say you’re a seasoned mt4 user but you want to go over to a broker which are known for being really really good and effective at their job but they don’t provide mt4 well there’s nothing to stop you downloading an mt4 platform from another broker and just using that for a visual purpose and then of course if you’re looking at a more to choose your trading platform with your actual account of course you can then be active trading on that account so don’t let the train platform thing put you off well it’s good to know that there’s a well-designed platform is clear buying sell bottoms and clear and trade close buttons as well so you’ll get the gist of it when you see it you know a poorly designed interface could lead to mistakes and that’s why it’s good to be aware of you know trading platforms so in conclusion if you’ve got confidence in your thorax broker you’ll be able to devote more time and attention to analysis and developing your thorac strategy so if you do the research before committing to a broker that’s going to go very very long way and increase your odds of success now on top of that as well you know the final and piece of advice I have is if you try and open a smaller account first trade that for a little while and just make a small withdrawal from that account and just see how smooth the transaction goes

if it does go well then of course you can then go ahead and you know pretty much start trading properly so to finish this tutorial we’re going to take an example of you know that break I’ve been looking at in the process I went through two to best them to make sure they were good and the company’s ex trade calm so first of all we’ll take a look at the first thing I look at on the website so again going into what we’ve said on the tutorial so far I don’t look at how pretty the sites are I go straight to the bottom of the site without even looking at anything else and I go through and have a look at what their and what their regulations are so you can see x-ray the part of xfr financial and the license by by Susac okay so haven’t good look at this strikes back I see they’ve got some sort of regulation so the next thing I’ll do is I’ll basically go to Google I want to look to see they had any any recent finds from that Securities and Exchange Commission so we’ll have a look so just google the name followed by the the regulation and if an organization has and seeing fines or being punished by by the Commission’s for any legal actions you’ll you’ll find on page walks of you on the news but what you can actually do is go down you’ll find a link to the regulation and agency and you can go on to that so remember we look to X trade who are part of XF our financial we can see that they’re their licenses is is there and it’s active we can see that it all checks out in terms of what they do and there’s no fines at all listed on on on that account so that’s a good thing so first of all we know that the regulations are there we know that you know they’ve not got any fine so you know as far as we can see they’ve been acting as they should be under that compliance so the next thing I’ll do is take a look at the account details remember so Commission spreads etc so we have a look at the floor X page so we can actually see that there’s no commissions on there which is fantastic and this fixed spreads so fixed spreads means we’ve got a good idea of how many pips we’re going to be paying in effect to trade any pair at any one time and we can see straight away that they’re they’re not being shy about their fees which again is good we like to see and you know we like to see service providers being very honest about what they do so we try to spread only no Commission’s which is a bonus and we can see that they’ve got inactive account fee but the worst case scenario if you don’t trade for three months you might have to pay five dollars for the account which you’re getting it’s relatively standard stuff so in terms of what’s on offer we can see that it seems all all all pretty good you can check out the list of 4x and available pairs etc so again if we go down here we can see all of the details that they’ve got so we’ve got the majors of minors and all the exotic so I can see that you know they’re going to have everything I need to trade and I can see that they already got live prices on the website again which is very good no hidden information there so we can see what’s going on there now in terms of the trading platform I can see that because it’s online CFD trading it’s online so you’ve got the charts as non by the looks of things and get it’s nice and clear for me and I like the fact that i can go straight to the website and see what the current prices are I can see exactly what the spread is and I can easily click to buy themselves so I like that too so on the face of it this one looks pretty good now in terms of the customer service for next finger I’m kind of looking Gatti’s is seeing what kind of facility they’ve got so I can see they’ve got a UK telephone number which is brilliant so I could give them a call and see how helpful they are in terms of and you know how up front they are with helping me out of information and again I can see they’ve got a chat with us box as well which

again is really really good so let’s just do a little quick test this and justice just see how helpful they tend to be in terms of how quick I can get through to somebody and again this is a live test I’ve got no idea you know what’s what’s going to go on here but so far you know you can see the processes live gone free to to really have a look at what’s what you know what’s on offer with a broker so one without waiting for the response here will have a look at what the the promotions are and live a good thing to know so remember we said about knowing and have what kind of posits you need what kind of office offers that they are so I can see here already you know you can take your first trade for free which is good so you can have a little play around the platform and see how it goes it looks like they’ve got cash bonuses for just verifying your phone number and also your account so straight away I can see that if I wanted to test this platform it wouldn’t lie verified my account and so on and so forth I’m going to get $45 to trade with for free so that’s great and then I also know if I like what I see after doing that I’m going to get deposit on my first bonus as well so those are a couple of things I’ve looked at so on the face a bit you know so far it seems pretty good and as you can see I’ve already got a response on on this shaft well chat window and that happened within about 30 seconds so I can see that already the customer service seems pretty good and let’s see about to a question I see how long it takes now while they respond let’s have another look at the final piece of the puzzle so the last thing I’ll check or but the last group of things i’ll check is i’ll go to google said the first thing I’ll do is I’ll check on Forex peace army and make sure that they’re not listed under scam brokers so if we go to agree go for this let’s have a look and there’s a reason why I do this as well so the interns got a little bit slow for some reason but we’ll get there okay so when we go to forex piece on the day they basically this style and scam brokers so we can go to scam alert on the traders court and we’ll be able to basically scroll through here and see if there’s any scam alert against the broker in question now the reason why I go to this as opposed to reviews is because the thing about thought speaks are mean online reviews is that competition brokers can also write reviews so if I was an outside broker and I wanted to bad-mouth another broker I could do that before it’s peace army now if a scam is in the works or some reviews or some people ask for help and it’s a genuine and thing that’s happened then for XPS army will launch a traders court case against them and they will give the broke opportunity to sort the case out and if they don’t they’ll be labeled as a scam broker so I use this part instead of the FPA reviews just to avoid either competitive brokers or people who have had a few bad experiences trading they’ve messed their account up but they blame the broker and now they’re a little bit bitter ballots or the right Bubba love you it happens all the time so first of all I make sure the Brogue isn’t listed as a scam broker which I I’ve already done an ex trade in a way and you can see already I’ve had a announcer on the customer services so we can close that down now on x-ray and the final thing I’ll do is I’ll just type in x ray review and just have a look at what comes up on google and again if anything comes on and as a complaint al lawz make sure i follow up what kind of response was from that so again all up do is just open a few links so see we got scammed broke on forex fraud let’s have a look at this one x-ray scam so again I’m being diligent him just do

my research to make sure that the broker checks out rather than just go because they’ve got a pretty platform and a pretty website so you can see we’ve got reviews here why tend to do I tend to scroll to the bottom see what other people have had um with this so let’s have a look so we can see we’ve got one guy as an example who tried to set X trades as a scam on November the seventh he said he just did post his money I mean really regrets trading well he’s done that but pretty much a day after opening account so again if you deposit funds it weighs Cecily’s just deposited funds and that Saints a scam again what makes him feel this way they’re well regulated broker the chance has always been a mistake so what we need to do is sift through all of these reviews and look for the genuine ones with any broker now every single broken world you’ll find you will find some bad reviews every single broker because as I say you’ve got competitive brokers and you’ve also got you know people who have kind of messy counter and and off struggling and blaming the broker so you need to make sure you filter through those poor reviews and you can see on scan broker dot-com for example and the last one we looked at you know X traders that the example we’re using we’re getting good reviews now bear this in mind any broker if it’s a genuine scam broker the reasons to know how one for XPS army wolf like them as a scam broker and number two there’ll be hundreds and hundreds and hundreds of reviews online if you bear in mind that there’s thousands of people these brokers trade guns of them if there’s only one too bad reviews there that’s pretty good going for any broker so bear that in mind and again I just look at this other one and daily forex with you again it’s like I’ve never actually use but it looks like they’re rare you know reviewing the reviewing it and again I’m looking to see what the conclusions are just to get an idea of how reliable this broker could be and there’s one red flag I’ve found on x-ray and a guy had had lodged a complaint and a couple of others followed up however you know for XP time I decided not to follow this one up because it wasn’t anything substantial in terms of any evidence there so again it appeared that it is a competitor broker so I’ve done my research so you’ve seen the kind of the process I go through so I take a look at the broker take a look at their offerings I do some googling and see if there’s anything that stands out so the first thing to check is make sure they’ve got my fines under their regulatory body so then at that point you know that they’re trading all aboveboard illegal and secondly just make sure that they’re not listed as a scam broker on there for XP sorry or any other reputable websites and of course always tested customer services so that’s the kind of my my advice on choosing a broker now each person has different and expectations and hopes when it comes to finding a broker always try them first try small amount and build it up and my staff I know that x-rayed have been really good so far for online trading at the mobile apps fantastic so if you do want to find out a little bit more about ex trade and do check out the the kind of the banner at daily forex cool calm and but again you know there’s many good brokers out there and they’re not too difficult to find so just do your research and follow these bikes and that I’ve given you in this presentation and no doubt you’ll have a pleasant forex trading experience