The Best Forex Brokers For Your Money
You have no idea how long it took me to figure this out. This is the most important thing you can control in trading. You have to set the most odds that you possibly can in your favor. Your choice of broker is more important than anything else. You must use the best broker you can find with the lowest costs of doing business. Many people fail to understand this. I know one trader who was good enough to be almost break even but his costs where calling him and it was impossible.
The first and greatest edge you can give yourself is using the best broker who offers the lowest spread and commissions. You have to do that. Otherwise, no matter how good you are or how much potential you have, you will not succeed in the market.
Criteria for best brokers with low spreads in my opinion:
1. Brokers allow all trading strategies including hedging and scalping.
2. Non Dealing Desk / ECN
3. Clearly regulated.
4. Offering high leverage.
5. LOW SPREAD
6. No bad reviews (traders not getting paid, etc.)
7. FIFO rule does not apply
The most important criteria to be on the top forex broker list is no dealing desk. This way you know your broker is never trading against you.
Unlike in sports gambling where the bookie is taking the other side of the bet, these brokers pass the trades on as they are received to the interbank making their money on the spread/commissions.
NDD – No Dealing Desk: An NDD forex broker provides direct access to the interbank market; it can be an STP or STP+ECN broker (see below for STP and ECN broker definitions). With a genuine No Dealing Desk broker, there is no re-quoting of prices, which means that you can trade during economic announcements without any restrictions. The spreads offered are lower, but they are not fixed, so they can increase significantly when volatility is increasing during major economic announcements. An NDD broker can either charge a commission on each trade or choose to increase the spread.
STP – Straight Through Processing: In STP mode, transactions are fully computerized and are immediately processed on the interbank market without any broker intervention.
I am more than willing to work with any of the top 3 brokers listed above. I can only work with one of them as they are the best and offer me the greatest chance of success and I implore you to do the same.
One last thing to say about what broker to use. Some traders like to use brokers that offer bonuses back for each lot trades which sounds attractive. But is it a good deal? The truth is the spreads these brokers use are very high. You will be much better off using a broker with a low spread rather than a broker charging you way too much and giving you back small piece of what they took from you in return.
NextGen Trinity Requirement: You need a non-FIFO broker that allows hedging with margin set to 1:200