Forex Broker Selection Does Matter!

Forex broker selection is often mistakenly based on free bonuses and commission costs. But the real issues in trading are best market price, and easy of use.

Forex Broker Selection Should Be Based on Trading Efficiency

Trading efficiency is determined by how easy it is to use a trading platform, and if certain trading tools are available. Anything that could make the trader make mistakes, such as entering the wrong number in a contingent order, or not being able to open and close trades fast enough, can be very costly. Then is of course the issue of liquidity, which only few good broker s can handle well when markets are themselves low on liquidity. Forex broker selection is therefore very important, and traders should not pay attention at all to free bonuses, deposit bonuses and offers, which bring no real value to the table. What brings value is trading efficiency. All forex strategies require accurate trade execution. What is forex trading expected to offer, if many trades are placed after long delays, and other already profitable trades cannot be closed fast enough, during critical times? Wise traders are wise enough to look past the marketing hype when choosing a broker, but even these traders can still choose a broker whose trading platform may be hard to use. The trading platform is just as important as liquidity is. Some brokers, in an effort to appear more innovative and better, use platforms which are actually harder to use, and factors such as leverage are not shown clearly enough, thereby confusing the trader.

Beware of So Called Magazine Award-Winning Brokers!

Other brokers suffer from long latency times, and trading becomes impossible during some hours. For example, it has been the case with a very popular UK based broker, where you actually closed a trade and not confirmation was received at all for several hours! This unbelievable blunder lasted for an entire day, where markets were moving fast, resulting in many clients suffering large unnecessary losses. I know first hand because I was one of those clients. I actually attempted to close a losing trade, no confirmation was displayed on the platform or received by email. I then mistakenly thought the losing trade was till open, because it appeared to be so. In my panic, I ended up opening 3 more new trades in the wrong direction, trying to close the original losing trade. The end result was $300 in losses, in what should have been a $50 losing trade. Confirmation was received many hours later at night, by email. Unbelievable! So beware of highly popular brokers, this one was an award winning forex broker! And proved to be so much below average. How to trade forex profitably, even with the best strategy when one uses such a broker? The above incident would never had happened to me had I been using a CFDs broker, anyone with a fairly good reputation. Magazine broker of the year awards are not necessary, thanks. In fact this just one more marketing technique that some large, but poorly designed brokers use.