FX broker, you Choose

Choose an FX broker with good customer support

FX broker defines the tool of your access to the financial markets, and, therefore, it is the first step you should undertake before placing your first trade on the platforms.

Nowadays your FX broker is not your trusted partner if this broker is a market maker.

Market makers don’t care about integrity and ethics, but rather care to make more profit. Do you want to open an account with an FX broker that is a market maker? Think twice.

FX broker, your tool to the global markets

The selection of your FX broker should be a wise decision as the right choice will define your trading success in the long-run.

An FX broker can operate either as an STP/ECN or a market maker.

A market maker has a dealing desk (room) in place,  and can provide liquidity to traders. In the scenario where the trader loses his or her account balance, the market maker will acquire this balance.  In the meantime, the market maker profits from the orders traders execute via commission.

Alternatively, in the case of an STP/ECN broker, the broker benefits from the clients’ trading volume via commissions. In simpler terms, bigger volume means more commission for the STP/ECN broker.

STP/ECN or market maker?

Firstly, you should ask whether you wish to trade with an STP/ECN broker or a market maker.

You should pay attention to regulation, such as whether your broker is regulated by the domestic authorities it operates and acquires the relevant licenses.

Does your broker delay your requests for withdrawal? If this is the case then likely your broker is a market maker, has provided you with liquidity and, therefore, it does not wish to give you your money from the brokerage’s cash flow balance.

Does your broker offer bonuses? Well, once again this is a sample of a market maker. Note that these bonuses are not withdrawable and are just to intrigue the traders to deposit more and trade more.

The next audit a trader should perform is checking for customer feedbacks and reviews. It is advisable to pay more attentions to a broker’s negative rather than positive reviews.

Last but not least, three further vital checks a trader should perform are whether the FX broker was fined or came along with regulatory penalties, whether it offers the necessary customer support, and whether it provides fast execution on trades.

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