Factors I look for when choosing a forex broker.
The hidden benefits to look for in a trading account
What is a trading account?
A trading account is no different to a bank account with zero interest rates. But there are so many brokers available on the market, that sometimes it's hard to choose which one to go for. Unlike banks in the UK, they all have similar fees and you can expect the same service nationwide. However, brokers actually vary a lot. Although most brokers are regulated, there are some hidden factors and sneaky tricks to look out for when deciding a broker?
This page will walk you through the first stage of trading, which is deciding what broker to pick and some of the benefits you should expect. As more and more brokers appear, this increases competition between them, so you should be expecting better service. It is the same reason why too much dominance with one company tends to hinder progress. The competition is good!
In the next 5 minutes, you will understand my reasoning for choosing the platforms I trade with, and why I decided to affiliate with these organisations.
Why do you need a broker?
About thirty years ago, in 1986, the London Stock Exchange changed all face-to-face trading to computer-based. This meant the market went digital. Therefore, we need an online broker to execute any transaction. Similar to Visa and Mastercard for our everyday purchases, a broker will connect all the buyer/seller.
Whenever you want to buy a share or currency, someone else needs to be selling it, and vice versa. And people are always trading, whether it’s for travelling, business or international payment. They all run through the market exchange. Compared to travel exchanges, brokers typically have lower exchange fees and are up to 4 decimal places.
Choosing the right broker?
I’m sure we’ve all seen adverts, such as the one on the left, which offer low commission and “the best service.” But choosing the best one can be difficult, as there are a number of factor to consider
Of course, they all do what’s on the tin and are a medium to place trades. But to differentiate between them, it is important to see what else they have to offer. Truth be told, there isn’t really a single broker who excels at everything, as they need to profit somewhere.
There's a common saying, such as zero commission/fees/spread, but this isn't charity. Most of these brokers have ridiculously higher interest rate swaps. So they’ll get their money somehow. From a consumer point of view, and the fact that I have created countless accounts with various brokers, Vantage Fx and VT markets are by far the best for forex trading only
Here are some of the key elements that Vantage FX/ VT market have, but also their alongside their inconvenience as well.
- Generally easy to use on MT4 (The official app is still complicated).
- 24/5 phone line — (Except for major issues, which is only between 10 pm- 6 am GMT — -Australian broker).
- They offer higher Leverage — Not available by all brokers, but essential for algorithmic trading.
- No withdrawal fee for the first withdrawal per calendar month (Most broker charge with depositing and withdrawing on top of trade commissions/ fees/spread. I personally feel this is an attempt to squeeze every penny from consumers.
- Introductory offers and promotions, such as bonus credit, gets converted to real money over time. This is extremely rare — Vantage Fx/ VT markets are the only broker I have seen to do this.
- No option for social trading or copy trading. These are some things that companies like Naga or eToro excel at, but this comes with higher fees
- Terrible for company stocks, crypto and commodities. Prefer Trading 212
I have had an account with Vantage Fx for about 3 years, and I have been affiliated with them for over a year and a half. Just to clarify, I have been recommending Vantage/VT markets even before I was affiliated with them. Why settle for anything less?
Is one broker enough for all trading?
No, as mentioned, for crypto, stocks and other securities there are better and more user-friendly exchanges. This includes Trading 212, Luno and crypto.com. Generally, there are very few differences between these trading accounts. The most important factors to look out for are withdrawal and deposit fees.
Of course, in the end, it comes to personal preference and which broker is the best in your country. However, remember that the most famous brokers are often the ones that have overcharged their customers. So do your proper research. Also, if you are going to open an account for a broker. Open it through an affiliated link from a trading group. This will often lead to benefits, such as trading signals and analysis for free. Contact me for examples that I know
Any financial advice whatsoever with any products supplied, be that the algorithm, emails, calls, research, analyses, or other information contained on any page, are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Any person undertaking does so with the understanding that the content supplied is a guide to demonstrate how Shivalay Kara and the team trades with the algorithm. All education and products are done so in a non-professional environment, and Shivalay Kara and the team won’t hold any responsibility for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of the algorithm or advise.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CONTACT US FOR QUERIES