Best Broker for a Newbie

MFG/PFG ... yea too bad about our regulators - not much help, are they?! Though some regulation is better than nothing. Aside from misusing our deposits, at least you won't have to worry about them disappearing without a trace!

I wonder if a broker gets away with some illegal activity while being regulated - can the regulation body be accounted for all of the losses of their clients?

Regulators bare no responsibilities for clients losses due to anything.

For a new trader, you are best getting CENT accounts.

instaForex ; TradeFort ; ProfiForex ; FXOpen Micro - all have low deposits but x100 the balance in MT4.

Example - you send $100 to them, they put $10,000 showing in MT4, so you can use EA's and big lots but only risk $100.

Increase leverage to 400:1/800:1/1000:1 and robots do well at profiting.

When you ready move up to FinFX ECN accounts etc. or DukasCopy

kevinduk1 posted:
For a new trader, you are best getting CENT accounts.

instaForex ; TradeFort ; ProfiForex ; FXOpen Micro - all have low deposits but x100 the balance in MT4.

Example - you send $100 to them, they put $10,000 showing in MT4, so you can use EA's and big lots but only risk $100.

Increase leverage to 400:1/800:1/1000:1 and robots do well at profiting.

When you ready move up to FinFX ECN accounts etc. or DukasCopy

I agree, and for a newbie like me I think it's the only chance of getting ahead. I'm currently using Forex Ultra Scalper and Forex Turbo Scalper on the one screen across a Eleven pairs. It's interesting to see one robot out perform the other one. I also look at the MA 6 and 3 as well as the bollinger bands. Keeping in mind I've only been trying to take it all in for 5 minutes, I find that for now this is my limit. I'll still stay with a demo account for a while, until I get some common sense with it all. LOL

I use XForex. I find it easy to use with fairly good analytical tools. And it's free!

whatever broker you chose, don't forget to test it first and there are more things to consider still. what are the spread, commissions. there should be some good options out there.

I doubt someone can tell you the best broker for newbie, simply because different people choose different brokers for different purposes. For example one traders strategy may relay mainly on execution speed, thus will be priority for him to check brokers with good execution speed. If you however do not have strategy still, I advice you to find brokers with Demo trading account, where you can practice to build your strategy.

When to enter a trade guys?

guru posted:
I use XForex. I find it easy to use with fairly good analytical tools. And it's free!

hi guru,
how long are you trading with XForex? Do they have MT4 or another platform?

kevinduk1 posted:
For a new trader, you are best getting CENT accounts.

instaForex ; TradeFort ; ProfiForex ; FXOpen Micro - all have low deposits but x100 the balance in MT4.

Example - you send $100 to them, they put $10,000 showing in MT4, so you can use EA's and big lots but only risk $100.

Increase leverage to 400:1/800:1/1000:1 and robots do well at profiting.

When you ready move up to FinFX ECN accounts etc. or DukasCopy

No way InstaForex or any Russian broker, they are simply terrible.
Use Australian like Icmarkets https://www.icmarkets.com/
Good spread, great execution, perfect leverage. Honest, no problem broker.

CliveCampbell posted:
I doubt someone can tell you the best broker for newbie, simply because different people choose different brokers for different purposes. For example one traders strategy may relay mainly on execution speed, thus will be priority for him to check brokers with good execution speed. If you however do not have strategy still, I advice you to find brokers with Demo trading account, where you can practice to build your strategy.

I find your advise very smart. I'm a newbie and I want to test and practice different brokers' demo accounts till I get the confidence I can go live. Choosing a broker without testing is like buying a new car. They are all good 😎

themba43 posted:
When to enter a trade guys?

Every single moment you can open a trade :) What instrument do you trade?

James_Bond posted:
I wonder if a broker gets away with some illegal activity while being regulated - can the regulation body be accounted for all of the losses of their clients?

I believe regulators cannot penalise a broker only because of client losses, especially if the broker is licenced to deal on own desk. It's like to impose a fine on a bank if you lost from a big spread. As far as I know, regulators are more concerned about manipulations (illegal activities) done by the brokers and about setting common standards and benchmarks for execution of orders. From what I read in the news, sooner or later the illegal practices are caught and addressed by the regulators, so I guess an escape is possible only in short term.

If you intend to trade with FCA-regulated brokers keep in mind that the British regulator recently announced that they are proposing to cap leverage at a maximum level of 50:1 for CFDs and set even lower leverage limits of 25:1 for inexperienced retail clients (with less than 12 months of experience in CFD trading). (https://www.forexbrokerz.com/news/fca-capping-leverage-uk-forex-brokers)
Currently some UK-based brokers offer leverage levels exceeding 500:1, which involve great risk of lossess in excess of initial investments.

Under any circumstances I suggest picking an FCA regulated (and automatically FSCS-insured broker) after being robbed by a NZ-''regulated'' (what a joke) broker who took off with $500k+ ''segregated'' client funds in total... Once he had taken all the client funds, the NZ authorities had ''deregulated'' the broker, so they did not have to deal with the mess it had left behind... How ''smart'' it was... Anyway, the same thing can happen with ANY off-shore broker or any broker in general with no capital insurance...

Also choose a broker which is PURE ECN/STP/DMA, i.e. which will not attach virtual dealer plug-in parasite software to your MT4 crippling it to death.

Luckily I have found one just recently which fulfills both requirements and performs much-much better with the same EA than ICM or Pepperstone. I cannot post its name here, but if interested, please PM me for further details.

togr posted:

kevinduk1 posted:
For a new trader, you are best getting CENT accounts.

instaForex ; TradeFort ; ProfiForex ; FXOpen Micro - all have low deposits but x100 the balance in MT4.

Example - you send $100 to them, they put $10,000 showing in MT4, so you can use EA's and big lots but only risk $100.

Increase leverage to 400:1/800:1/1000:1 and robots do well at profiting.

When you ready move up to FinFX ECN accounts etc. or DukasCopy

No way InstaForex or any Russian broker, they are simply terrible.
Use Australian like Icmarkets https://www.icmarkets.com/
Good spread, great execution, perfect leverage. Honest, no problem broker.

I am running the same EA with IC Markets ('TrueECN) and with a new DMA/STP FCA regulated London based broker and the difference is significant using the same exact EA with the same exact parameters...

Just a couple of days ago ICM quoted a 7 pips spread on CADCHF on my ''TrueECN'' account, while my new FCA regulated pure STP/DMA broker quoted 2.5 pips at the same time... It makes one wonder how ''TRUE'' ICM's ''TrueECN'' is...??!

Probably it is not a secret that it is a 'B-booked' pseudo-ECN ''THING''...

Really, ''no shit''...

ya icmarket is the way to start on the right foot

The German regulator BaFin are also considering similar measures as the FCA's. They announced their intentions to “limit the marketing, distribution and sale of financial contracts for difference (CFDs) with an additional payments obligation” to retail clients. (https://www.forexbrokerz.com/news/germany-bafin-to-ban-margin-trading-cfds)
 
This means that in theory margin trading could be altogether banned in Germany, as, according to BaFin, the risk of losses for the retail clients are “incalculable”. In its statement the regulator explains that if the difference to be paid by the retail client exceeds the capital they have invested, they must pay the difference amount from their other assets.