What to look for when choosing a good Forex broker
In this video:
00:23 – Are you looking for a good Forex broker?
01:00 – What makes a broker different?
01:30 – The brokers I personally use and why
02:00 – Who to use if you live in the US
03:01 – Ensuring your funds are safe
03:15 – Use a 5pm EST start of day chart
03:50 – Tight spreads are needed throughout the entire day
05:02 – It’s your decision, your money – choose wisely
05:40 – The JPY strengthened all week
06:04 – Live trading webinar with my clients – great trading results achieved.
What qualities should you look for when choosing a good Forex broker? Let's talk about that and more right now.
Hi, Forex Traders. Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 19th of February.
Are you looking for a good Forex broker?
I've had a lot of emails come through this week, people are looking for a broker to use and coming to me saying, “Andrew, can you make some suggestions of some good, reliable, Forex brokers? I keep reading reviews about these brokers, I'm a little bit concerned about where I should put my money, who do I trust my funds with, and my Forex future with in terms of a broker. Who do I choose? How do I choose one?”
Well, I've just come back from the IFX Expo in Hong Kong and at that event, there were a lot of brokers.
What makes a broker different?
When you look around at brokers, to be honest, a lot of them offer much the same type of thing in terms of similar type of platform, let's call it, MT4, Meta Trader 4 Platform.
They offer a couple extra little gadgets and little incentives. Maybe cash bonuses, whatever it is, to try and get you on board. Basically, a lot of them from the ad side seem very, very similar so how do you determine who to go for and who to trust your money with?
The brokers I personally use and why
Well, for me personally, I only ever recommend four brokers. Three of them I use personally, and they are AxiTrader, Pepperstone, and Go Markets. I've had a relationship with all three of them for many, many years. I've referred a lot of people to them and I've got no problems. The odd time you get one little question here or there but almost no issues whatsoever, and if there have been issues they get dealt with real quick. I personally have quite substantial funds with all three of those brokers and I have no hesitation in recommending those three brokers.
Who to use if you live in the US
The other broker that I also recommend, and this is mostly for my US based clients, and that's ATC Brokers. All four of those brokers, they have very similar things in common. They have good regulations. I have a good rapport with their staff, I've found them very useful, very friendly in terms of looking after clients, good to deal with if you ever get an issue.
The three Australian brokers, they're all ASIC regulated, Australian Securities Investment Commission. Now, if you're in Europe or US, you may think, “Well, why does an Australian broker really appeal to me?
Well, the good thing is with those three brokers in particular, that they all have European and UK servers, they have branches over there, offices over there as well. You can have your accounts in Aussie dollars, Kiwi, Canadian, Franc, Pounds, Euros, so multiple currencies that you can trade in. I believe also ATC Brokers have a branch in the UK, I believe.
Ensuring your funds are safe
As a broker, you need to make sure that your funds are safe with that broker. As far as I can tell, all four of those are about as good as you can get.
The other thing, they also have what I call the correct chart time.
Use a 5pm EST start of day chart
They start the day at 5 PM, New York time, Eastern Standard Time. That means that on the daily charts your day starts at 5 PM and ends at 5PM, 4:59. On the daily charts, there are five full, complete days within one week. Really important thing when looking for a broker also in terms of natural charting package and when they start, so that's another important thing.
Micro lots also. You need to have the ability to have very accurate position sizing. Being able to go down to 0.01, lots of increments of that, is also, in my opinion, quite an important aspect for people to be able to have as part of their charting package.
Tight spreads are needed throughout the entire day
Also of course, tight spreads to chart the entire day. All having good tight spreads when the markets quietly, but you want to have tight spreads throughout the entire 24 hours of the market being open. It just helps you, regardless of your trading strategy. Those are some of the things that I'm looking for.
In terms of those brokers, I put a link to all four of those brokers on this post. You can also find a link to all four of those brokers on my website. Go to the Products page and then drop down. There you'll see recommended brokers I think it's called, and you'll see a link to all of those brokers. Those are the important things that I look for with brokers. As I said, I personally have funds for those. I get inundated from various brokers daily, daily basis. Say, “Andrew, will you promote us? Will you put this on your website?”
I'm not interested in any of that. I'm purely making this video to help you if you're looking for a broker that someone's suggesting. There are so many brokers out there, you get some absolute horror stories.
It’s your decision, your money – choose wisely
It's really important to try and have a broker that you're comfortable with. Ultimately, it needs to be your decision regardless of what I say. I can only recommend what I'm comfortable with, with my own money. It needs to be your decision, your money. But if you want a suggestion I would strongly consider, if you want a metatrader 4 broker, Pepperstone, AxiTrader, Go Markets. If you're in the US, ATC Brokers.
Have a look into those four brokers, use the links that I've got on here and you'll find that will go straight through to their page. You can find out more about those brokers.
Any questions about that, come back to me, [email protected]. If you'd like me to talk about more trading tips and information, I can do that on weekly videos for you.
The JPY strengthened all week
Chart-wise this week just very quickly, the Japanese Yen has strengthened quite considerably this week in the end. I had a few days where it was just pulling back and weakening. Now it's back into its strength again. Just got off the phone with a client and taking some great trades. British Pan, Japanese Yen is looking very, very bearish. A lot of weakness in the Pound or round a lot of strength in the Yen. When you put the two together, Pound – Yen is just selling opportunities time after time.
Live trading webinar with my clients – great trading results achieved.
Lastly, I had a webinar with my clients yesterday. I had a fantastic webinar, two and a half hours it lasted. Took a few trades live and just some of the results that people are achieving it's just outstanding, so really pleased with that.
This is Andrew Mitchem from the Forex Trading Coach, have a wonderful weekend. Look forward to talking to you this time next week.