Considerations for choosing a good broker

Considerations for choosing a good broker

Following are some considerations to consider:

a. Legality of Brokers:

This means that not all brokers available on the internet have proper operating licenses, because in the internet world there are many frauds, ranging from the lure of fake gifts, fake job vacancies, fake goods, fake Multi Level Marketing businesses or money games, fake/fraudulent gambling. , identity and password theft to the point of fake commodity and Forex brokers which are usually used as a means of money laundering or simply pure fraud. A legal broker will have guaranteed regulation. Correct and credible regulations for a brokerage company with an international market, namely: NFA, CFTC, FCA UK, MFSA, MiFID, ASIC.

 b. Support for strategy trading :

Not all brokers support existing trading techniques such as the prohibition of hedging, scalping, having to be FIFO or not supporting the use of Expert Advisors. Legal brokers & who support all trading strategies usually operate in European Union countries such as FXDD Malta, Gain Capital Forex.com UK, FXCM UK and OANDA. Brokers operating from the USA prohibit hedging techniques and use FIFO rules, for example like MB Trading & Interactive Brokers (IB).

 c. Broker credibility can be seen from the country where the broker is registered:

Not all brokers have satisfactory credibility, this credibility concerns the level of culture & discipline of a country. Credible brokers usually come from developed countries, such as the European Union Region, the Australian Continent & the North American Region. The characteristics of a broker with a high level of credibility, must be regulated in one of the regulators, such as NFA, CFTC, FCA UK, MFSA, MiFID, ASIC. Meanwhile, brokers from developing countries, which are included in this category are the Russian Federation, British Virgin Islands (BVI), Marshall Islands, Mauritius, Seychelles, Panama, Bahamas, Cyprus, Belize, Costa Rica, Gibraltar, Cayman Islands, and Saint Vincent and the Grenadines .

 d. Fund Withdrawal Fees and Fund Deposits:
Each broker has a different fee for withdrawing funds. For example the FXDD broker
free of charge for withdrawing funds 1 time a month because for the 2nd withdrawal of funds you will be charged. The Gain Capital broker has a fee of 25 USD, while FXCM charges a fee of 40 USD for each withdrawal. In addition to the withdrawal fee, there is also a wire transfer fee, which ranges from around 25 USD to a broker's offshore account, for example Bank of America or Barclays in the UK. the funds will arrive in the trading account around 1-3 working days. If you want free withdrawal and Deposit Fund fees (if any, at least below 1% of the total Withdrawal/Deposit), you can open a trading account at a broker from the Russian Federation, British Virgin Islands (BVI), Mauritius, Seychelles, Panama , Bahamas, Cyprus, Belize, Costa Rica, Gibraltar, Cayman Islands and Saint Vincent and the Grenadines. Withdrawal and deposit media can use a 3rd party account (the term local deposit versus wire transfer). So you can deposit or withdraw funds directly via BCA, Mandiri, BNI ATMs in a matter of minutes. Or sometimes through payment media such as FASAPAY or buying a deposit or prepaid voucher from the broker where you are trading, usually with a nominal value of at least 5 - 10 US dollars. Actually, administratively, this method violates Bank Indonesia regulations, because it collects public funds in Indonesia without permission.

e. Technical support
To make it easier to deal with problems that will occur in the future, you should register through an Introducing Broker (IB) from your favorite broker. Not every broker from abroad has an IB.
 

f. Fund Guarantee Risk
If we trade with the amount of funds invested exceeding 1000 USD, you should choose a more credible broker, which is regulated in one of the regulators, such as NFA, CFTC, FCA UK, MFSA, MiFID and ASIC, which guarantees the safety of trader assets, oversees and protect investors from fraudulent activities in commodities and futures trading. On the other hand, if you are still in the learning stage with funds of less than 1000 USD, you can choose any broker (even if the regulations are not clear) without any problems. Especially for brokers whose regulations have not been registered with the NFA, CFTC, FCA UK, MFSA, MiFID or ASIC, it is recommended to choose a broker with a long standing age, for example broker ALPARI (1998), Master Forex (2006) and Exness ( 2008) each of which came from the Russian Federation. At this broker, you can withdraw and deposit funds via an ATM (the term local deposit versus wire transfer), or through an exchanger such as FASAPAY.

 

g. Spreads
The spread is the difference between the buy and sell prices. This spread is a service that we have to pay to the broker. Forget about the spread, no matter how small the spread, the broker will kickback alias against the order price some time after the order is executed, unless you are trading at a broker with the largest retail forex turnover in the world, namely Interactive Brokers. These big brokers are in the same class as liquidators or foreign exchange banks such as Barclays Capital, JP Morgan. Orders from other brokers based on MT4 are often thrown here. There is no kickback at this Broker. There are brokers with small spreads such as FXCM and Gain Capital, but when withdrawing they are charged a fee of 40 USD and 25 USD respectively, there are those with rather large spreads such as FXDD, but when withdrawing once a month, they are given a free fee facility, choose a broker Either way, there are advantages and disadvantages.

h. Additional facilities for forex technical analysis.
Several brokers work with Autochartist to provide additional services for their clients. One of the tools offered is Autochartist. These tools can be used to analyze price movements of various types of forex pairs, commodities and indices. The forex brokers that support the Autochartist Facility are ALPARI, ActivTrades, Admiral Markets, A Markets, ALBMenkul, AIQ, CFD1000, EC Markets, Finam, Finansonline, Finexo, Forex Club, Gain Capital Forex.com, Forex4U, Forex Yard, FxPro, GFT (UK & Australia), GKFX, GO Markets, GO4X, IG Markets (UK), IG Index, iNET Securities, Instaforex, IS Yatirim, Markets.com, MaxiForex, Monex Investindo Futures, MTrading, NETTRADER, OANDA, RoboForex, SmartCapital, Swissquote, ThinkForex, Think Or Swim, TMS, Tradefair, Vantage FX UK, VTB24, xForex and finally xTrade.