To use chat, please login.
Back to contacts

Best Broker for a Newbie

skyjack777
Jun 30 2012 at 03:35
55 posts
Hi All,
       Have just been to the reviews on Brokers. I'll ask the question here. For someone in Australia, with a micro account between $250 to $500 dealing with .01 lots, is there any Brokers that come to mine. Thanks Bruce

gareenk
Jul 02 2012 at 01:26
13 posts
there are several discussion about brokers here, there are some that had better score than others, just choose any of them which is easier for you to deposit and withdraw your money

LK Wong
lkwong
Jul 02 2012 at 19:18
71 posts
I personally use IBFX AU, and they've been quite reliable thus far. I would recommend them, but I'm not sure if your trading methods are similar to mine. What I can say is that execution is reliable (haven't had any requotes), customer service is pretty good, but some matter would require them to email you a reolution ('Liveperson' System). Withdrawal and deposits have happened in a timely manner. They are pretty stict with the sign-up process, but I guess that a one off.

-LK

P/s : Thought I'd mention I'm a Money Manager there, and also an IB, but I'm not suggesting you should sign up through me. You can do so directly from their website.

skyjack777
Jul 02 2012 at 23:21
55 posts
Thanks for all the comments. I'm currently usng IBFX AU, FxPro and Vertue in demo mode. I'm finding I like IBFX best now just need to know all the costs. Bruce

TheLastBear
Jul 09 2012 at 10:42
186 posts
You may want to check out PaxForex as well. I have been with them for a bit and so far I am very pleased with them. They offer three different trading accounts and their customer service is top of the line, at least that has been my experience. I slowly moved my funds over there and for now they won the battle for my prime FX Broker. They handle deposits/withdrawals very fast and I feel my funds are safe with them. What got me interested was their $200 No Deposit Bonus, but that is just me.

I can only recommend them, not sure if others have traded with them from this community. In case you do, please let me know what you think as it is always better to have multiple opinions.

Pax puts the X in Forex.
skyjack777
Jul 09 2012 at 13:12
55 posts
Thanks for that The Last Bear. In the end I may run with up to 3 small accounts from different Brokers. The robots will go on one and I'll trial Wallstreet Forex Robot on one with the last running for my attempts. I've read alot of blogs on the WFR with a long way to go before outlaying any more cash. Bought an Ipad 3 yesterday so I'll be able to read a lot more on the subject away from home.
Thanks for your comments. Bruce

TheLastBear
Jul 10 2012 at 09:49
186 posts
You are welcome Bruce. I have found that feeling that your funds are safe is very important. I think three different brokers is a good start. It is also a good idea to initially fund your accounts with little cash and see how it goes. I have only came across one broker who took my money and ran. They are closed now, but I only had $20 with them to start and they already acted strange about minor accounting issues. They even asked why I don't fund it with more cash and after I told them I am testing them they developed an attitude rather fast. I asked them to close my account and send my money back to me. They responded that the minimum withdrawal is $25. I told them to keep it, they have been shut down. I assume they scammed a lot of people, but as a rule of thumb:

If a broker does not respect your small deposits, they are not worth your large deposits.

Pax puts the X in Forex.
skyjack777
Jul 10 2012 at 12:56
55 posts
It's always good to know when to cut your loses and run. Cheap lessons don't come by to often,

TheLastBear
Jul 11 2012 at 09:30
186 posts
That is very true, but as long as you learn from your mistakes your financial loss will turn into an investment for the future.

Pax puts the X in Forex.
James_Bond
Jul 11 2012 at 09:50
556 posts
I don't think there is a 'better' broker for newbies - a broker which is best for experienced traders should be excellent for newbies also. The first one which comes to mind is Oanda, although I'm sure there are others.

I would avoid though the ones offering bonuses as the best brokers don't offer those.

TheLastBear
Jul 11 2012 at 09:59
186 posts
There is no such thing as best broker for a newbie, true. A good broker is good for all. I disagree that the best brokers do not offer bonuses. There are plenty of good brokers who do offer bonuses and have loyalty programs. It also depends on what you consider best broker. Most use the MT4 or MT5 platform. Spreads are one thing you can judge them by. I judge by customer service and security of my funds. Execution of trades is also part of it.

Pax puts the X in Forex.
aj9015121 (aj901512)
Jul 11 2012 at 10:03
60 posts

   TheLastBear posted:
   There is no such thing as best broker for a newbie, true. A good broker is good for all. I disagree that the best brokers do not offer bonuses. There are plenty of good brokers who do offer bonuses and have loyalty programs. It also depends on what you consider best broker. Most use the MT4 or MT5 platform. Spreads are one thing you can judge them by. I judge by customer service and security of my funds. Execution of trades is also part of it.


I agree

James_Bond
Jul 11 2012 at 10:06
556 posts
TheLastBear, you might be right about the bonuses, I simply always looked at it as a cheap gimmick used by bucket shops to lure newbies.

As to the customer service and security of funds, I agree very much, although the other begs the question - how do you determine the security of funds?

TheLastBear
Jul 12 2012 at 09:00
186 posts
That is a good question and I do not have a great answer. What I do is I deposit a small amount into an account and trade, make a few more minor deposits and withdrawals and see how they are being handled. This is far from perfect, but the best I can think of.

Yes, there are a lot of bucket shops who lure newbies with great bonuses which is why I think it is important for traders to communicate and inform each other about those bucket shops and warn newbies. It is like a self policing environment.

Pax puts the X in Forex.
James_Bond
Jul 12 2012 at 11:59
556 posts

   TheLastBear posted:
What I do is I deposit a small amount into an account and trade, make a few more minor deposits and withdrawals and see how they are being handled. This is far from perfect, but the best I can think of.


That is some sort of testing, problem is that if the firm is going to bankrupt, you simply can't know when is it going to happen so this doesn't really matter what happened previously. I think a good way to check with their regulation and:
(1) Are the accounts insured?
(2) By who the accounts insured?
(3) Up to which amount are the accounts insured?

I don't really know though how many brokers have actually insured their accounts and I would bet not too many as that obviously incurs more costs on their end.

TheLastBear
Jul 13 2012 at 10:00
186 posts
Right, if they go bankrupt there is no way to know when. My bigger concern is that they don't simply shut down and run away, but then again if they decide to do so there is no way of knowing when. I think it takes time to develop trust in your broker. Even if they are insured, if they run it will be a lengthy process to recover your funds.

Please tell me if you find a FX broker who actually insured accounts. I am not even sure that is possible as you are trading and this is not a bank account. I think if accounts are insured, traders who lose would file suits attempting to get their lost money back but I could be wrong here.

Pax puts the X in Forex.
James_Bond
Jul 13 2012 at 12:58
556 posts

   TheLastBear posted:
Please tell me if you find a FX broker who actually insured accounts. I am not even sure that is possible as you are trading and this is not a bank account. I think if accounts are insured, traders who lose would file suits attempting to get their lost money back but I could be wrong here.


I know that opening a forex account through a bank is definitely insured, although you then get the bank's rates which are mediocre at best (unless you trade very high volumes).

I search on Google and did find that citifx insure their accounts, you can find in this release (although it's from 2009, so not sure if it's still current):

https://www.citifxpro.com/sites/default/files/content/pdf/CitiFXPro_Dollar_Covered_By_FDIC_230209.pdf

TheLastBear
Jul 16 2012 at 10:38
186 posts
Right, through a bank they will be insured but then again I use a bank to bank and a broker to trade :). Thanks for looking into it and sharing.

Pax puts the X in Forex.
LK Wong
lkwong
Jul 17 2012 at 03:15
71 posts
Have a look at Custodian Bank Services provided at Dukascopy. It seems as the funds are held at banks (your choice of 7 banks) in trust (not segregated accounts). Deposit accounts in Switzerland are insured to CHF100,000. These services are reserved only for larger accounts tho'...

TheLastBear
Jul 17 2012 at 09:59
186 posts
That is an option. I am happy where I am right now with PaxForex and don't worry about it to be honest.

Pax puts the X in Forex.
Please login to comment .