• Share
Home Brokers Brokers Guide

Forex Brokers Guide – Forex Founders


What other differences are there in brokers?


You can find differences in four major areas: the size and location(s) of the broker’s company; the different possibilities for trading with the broker; the trading platform offered; and last, but by no means least, the service offered.


The broker’s company


Although there are no firm rules about size and capability, there are sometimes correlations. If a broker’s company is large, perhaps with an international presence, and has been in existence for a number of years, this may suggest that the broker is competent and robust enough to last in a market that is both competitive and dynamic. There’s also a suggestion that the broker is reasonably honest – otherwise, clients would have gone elsewhere.


A smaller broker, perhaps founded more recently, may be offering particular services or trading possibilities to a smaller market that has not been served by larger brokers. Smaller may mean less robust financially, but to really find out, you must check the financial reports and the standing of the broker whether large or small with the regulatory body concerned.


The trading possibilities for you


The broker will need to offer the currency pairs that are of interest to you and also to offer them without any surcharge. While this is typically not a problem for major pairs such as the US Dollar and the Euro, some other less popular pairs may attract higher brokers spreads or commissions. Other factors include the type of brokerage (market-maker or STP/ECN as above) and the sizes of contract available (meaning the different amounts of money that you can trade). Depending on how you want to trade, aspects such as rollover interest (the amount you earn or pay for a trade that lasts overnight) may also be important.


The trading platform


For trading online, the broker’s trading platform first of all needs to be compatible with your computer. It should also be easy to use (“user-friendly”) and give you the different graphical capabilities to make trading efficient and productive for you. Availability of a demonstration account is a big advantage because it lets you test not only the platform itself, but also your own trading plan, before investing your money.


Customer service


If something unexpected happens or if a payment goes missing for example, you may want to contact the broker quickly to get it resolved. Published hours of support and contact details are one thing: the reality of the support provided may be another. While you’re using your demo account, test the support as well to see if the broker’s staff answer promptly and correctly, and whether telephone or email contact is possible, or both.


Forexfounders.com has lists and ratings of brokers that you can use to compare on these points. These same lists and ratings can also help you considerably when you start making your selection, as laid out in the section below.