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
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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):
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'...
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