Spread is mainly considered as an important financial tool which an investor should consider when choosing broker. For leading a profitable trading life, we the traders have to choose the broker which always make sure lowest trading spreads.
Bradley88 posted: Looking for a reliable broker to start live and grazed on FP Markets recently ,their spreads, commission costs seem to be lower when compared with other similar brokers.
Are they a true ECN broker, can they can be reliable to trade with?
FP Markets is a good choice. I have been trading with the RAW (ECN) account for a while now, their spreads are some of the tightest out there (at least in the major pairs- Averages 0 for the most part of the day in EURUSD)
If you choose their Raw Spreads account, the commission charged per lot is 6$ per round lot, which is slightly cheaper than other similar ECN brokers.'
If the broker you are thinking about does not list its capital with the CFTC, would you really want to deposit your funds with them? Check with the local regulator at least for their capital requirement reports.
Next step is to make sure your broker is properly regulated, and I mean with one of the big regulators, not some dodgy one on a Caribbean island somewhere.
The next step is calling that regulator to make sure they have a good record. Check each and every action against them.
The next step is finding out the liquidity providers, do your due dilligence on them, at least call them and check their record with the regulators.
The next step is checking on the corporate side of the business, get a credit report about them from one of the big leading credit agencies.
The next step is calling or visiting them and talk to them.
The next step is opening a small live account and see if your trading style suits their platform/liquidity/spreads etc.
Do your due dilligence or else live with the consequences, just don't come here complaining on these forums about some dodgy broker, if you had gone about your business the right way, you wouldn't be with a dodgy broker in the first place.
Are the big regulated brokers perfect? Of course not, you will have problems with them, at least you have somewhere to go if you can't get it resolved and a broker with a 100 Mn in capital is not going to run of with your 500 bucks.
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