What Forex Trading Brokers Wise Traders Use

Forex trading brokers offer all kinds of promotions and advantages to their clients. Wise traders however are not sold on promotions, but rather on efficiency.

Forex Trading Brokers Serious and Wise Traders Use

Serious and wise traders, trading anything from commodities to currencies, use forex trading brokers of top liquidity. Liquidity means that the forex trader gets a better price every time they open or close a trade. Top brokers are working in a very competitive advantage and manage to offer low spreads to their clients. But even if they had to charge high commissions, their quality services would still be worth paying these commissions. To the small size trader liquidity advantages don’t become apparent, because the amounts of money made or lost to the market are too small. But to traders risking $100s per trade, the extra profit margin that good liquidity brings, dwarfs dealing costs. Even if forex and commodity traders had to pay big fixed commission per trade, which many stock brokers charge today, the top forex trading brokers would still be worth doing business with. Wise traders don’t care about sign up bonuses, and fancy offers. It’s all about liquidity, trade execution speed, and reliable platforms. And rightly so, because the bottom line is all about maximizing profitability. Trading online is a serious business, and all wise traders take a selective approach which is about trading less often, but with more money committed to each trade.

Good Forex Trading Brokers VS Popular Brokers

Good forex trading brokers are not necessarily the most popular ones, or the ones you see advertised in the media. In fact, the good brokerage firms are the ones that have high client retention numbers. They might have fewer clients, but these clients are satisfied with the level of service provided. Ultimately, a broker which has been rated as good, by few large size traders, who put liquidity to the test, is indeed a good broker. As opposed to a broker which has been rated as good, by 1000s of micro account traders, risking $1 per trade, and to whom liquidity issues, if they exist, will never be revealed. Liquidity issues surface at large size, and medium size high frequency trading. That is the ultimate test for all brokers. And while no perfect broker exists, the differences from one to another can be dramatic. In order to learn how to trade forex well, and from a real world perspective, one has to go for a good broker. The next step, is of course to become selective, think each trade through before execution. And to also avoid too much diversification. It is better to trade few markets, ones that the trader can master well. Many amateur traders tend to do the opposite, which is using a broker offering the most bonuses, which come with all kinds of strings attached. And then try to qualify for that bonus by attempting to increase trading activity, over too many different currency pairs. And that’s not the right way to profit from the forex market.