6.0 Factors to consider when choosing brokers Video Lecture | Forex: Learn and Master Trading (English) - Business Basics

hi welcome back to capex forex trading
comm in this video we're going to focus
on the factors you need to consider when
choosing forex brokers and it really
tends to be new traders that struggle
with this simply because they are eager
to tre they're eager to start but there
is so many brokers out there that they
don't really know where to begin
but despite the fact that there are
thousands of forex brokers available out
there there is a lot of them that have
head offices based in countries that are
poorly regulated now even in countries
like the UK the US or some financial
powers in Europe there is there are a
lot of question marks in forex
regulation because there is there is no
foreign there is no one single central
exchange so it's quite hard to keep a
track of but this is changing every year
and it's improving every year however
there are countries where for its
regulation is quite minimal and brokers
can get away with quite a lot now this
doesn't mean that your broker is a bad
broker it simply means that if you find
a broker from a country that where
you're not familiar with a regulation
you need to ensure that you find out who
the regulatory body is and also ensure
that your broker complies with the law
or has licenses required to operate
legally within that country once you do
that and you're confident then you're
okay to sign up for a live account don't
get sucked in by heavy marketing
campaigns the promise to make you a
millionaire overnight you will see
various advertising campaigns where
brokers promise that you can make a
hundred pips per day and delete they'll
even provide you with a quote from one
of their traders where they state that
I've made this with this broker in these
of this broker is great how exactly are
they going to make sure that you get
this 100 pips per day it's simply a play
on words they can't do this okay
all they do is provide the opportunity
for you to do so the only way that you
can make a hundred pips per day is if
your strategies are good enough if
they're not you won't okay and if you
don't make
hundred pips per day and you lose loads
of money you cannot sue your broker
because it's not their responsibility
and you will buy you will definitely
find small print somewhere where it says
that forest is a risking market and all
losses are your responsibility okay so a
lot of people do fall for this just make
sure you're not one of them because
their aim with these marketing
strategies is to increase their customer
base that's it the more customers they
get the more people fund their live
accounts the more funding takes place
into these live accounts the more
financially strong the broker is so when
they go to their bank and ask for a loan
to expand their business the bank
manager will see the financial stability
of the broker and basically give them
this money to expand so make sure that
you don't help the broker help yourself
if you're the type of trader that's
interested in cheap trading only then
all you need to do is look for a low
spread broker there's plenty of them
around and they usually refer to as
retail brokers or market makers now data
type of broker that offers spreads such
as half a pip on euro USD which is great
okay but the chances are if the spreads
are so low that the Commission might be
applied on top of this so basically
every time that you click buy or sell
there will be a fee apply to that and
this is how they make their money from
you if you're looking for a high-end
broker with higher spreads and chances
out there the Commission would either
below or is simply won't apply but this
is how it evens obviously because they
make their money from you by charging
this higher spread so sometimes
depending on which brokers you look at
the low spread broker and the high
spread broker will actually cost you
around about the same amount of money to
use okay so what you need to do again if
you especially if you got a low spread
broker such as a market maker just make
sure that they comply with those
regulatory issues that we discuss in the
first point to ensure that you're
confident to sign up to a live account
every platform has to be easy to use
okay a lot of brokers use their own
platform which is great but majority of
them do use empty for empty file which
is sort of the industry standard within
retail brokers especially but if the if
the platform is hard to use then you
need to move on to a new broker okay
you're going to making a lot of
important decisions throughout the day
and you need to get into the market
quickly and out of the market quickly
without using any kind of long process
so for example you need to enable one
click trading so I'll explain exactly
what that is with this example so if I
bring up my chart here you can see that
I've got one click trading enabled in a
left-hand corner all this enables me to
do is to press sell or buy and I'm in
the market straightaway okay what I
don't want to do is press f9 bring up a
ticket and put in my value here and then
press L buy ok that will take about 2 or
3 seconds extra which if you're trading
low timeframe is a very long time what
I'd like to do is preset the number of
dollars or pounds or whatever here and
press buy or sell and I'm in the market
straight away after this point obviously
you can set your stop losses and your
profit targets but the important thing
is that you're in the market quickly and
then worry about the rest straight away
after that your broker should allow
instant execution so what this means is
from the point at which you click buy or
sell you should be in the market
straight away at the price quoted by
your broker ok there should be no lag or
no waiting around for you to do this
unfortunately this is where a lot of
brokers do suffer so sometimes there can
be a two to ten second lag from the
point at which you click buy or sell
from the point at which you enter the
market sometimes the reason is because
the broker is a market maker and they're
waiting for the best possible price but
sometimes it's because the servers are
not good enough ok you should not suffer
because the servers are not good enough
or because your broker cannot find a
good price if they can't find a good
price does
quote in the first place so you must
ensure that your broker allows you
instant access to the market from the
point at which you clicked by your cell
some brokers allow leverage such as 1 to
500 or even above okay
realistically you should be aiming for a
broker that provides leverage up to one
to two hundred max the reason why is
because any further or any higher leaves
you to expose it's just far too risky
and you could suffer big losses if
you're not careful enough demo account
should be something that you should have
from the start whether you're trading in
a live market or not professional
traders still use demo accounts the
reason why is because sometimes they can
have a bad streak or they want to adapt
their strategies there are a number of
reasons why demo accounts are still used
even alongside live trading so ensure
that your broker allows you to have a
demo account some give you a demo
account for a specific period such as
two weeks if that's the case and you
really like your broker then just
negotiate with them to allow you to have
this demo trading account for a longer
period the reason why is because they
just want to get you to trade in the
live account so they can start making
money from you this means that they do
not have your interest at heart and if
this is the case all you need to do
simply threaten them with the with the
notion that if they stop your demo
account that you won't sign up to a live
account and the chances are that they
will accept this and keep you as a
potential customer brokers make it very
easy for you to upload funds into your
trading account the reason why is
because they wanted to start trading as
soon as possible but sometimes they make
it quite difficult for you to take that
money out and if this is the case then
alarm bells should be ringing in your
head the process of taking money out of
your account should be as easy as
putting the money into your account and
on top of that if there are fees that
you don't agree with for taking your
money in from your account into your
normal bank account then you should
question your broker and ask what those
fees are and why does it take so long
and if you negotiate with them those
fees are usually abolished sometimes
they're not and if you really have
nowhere further to go with the broker
where you get in charge too much to take
your money that you've earned out of
your trading account then you should
look for a new broker customer service
is paramount to any business okay and
the same applies to forex brokers they
have a responsibility to answer any
question that you may have okay they
should know everything about their
platform and about their company and if
there is a question that they can't
answer that's fine but they have to get
back to you if they kind of move around
the issue and never get back to you then
you're not dealing with a good broker
that is a fact
you should get answers via email or via
phone or Y or whatever to any questions
that you may have because the quality of
their customer service is directly
linked to the quality of their business
so if the service is bad you need to
move on now what we've done for you on
our website is provided you with a table
of trusted forex brokers so if you go to
cap X forex trading comm forward slash
Forex - brokers or simply click on this
prefer Express tab here you will see a
list of those brokers you will see a
table now each one of those brokers has
a link where you can open a live account
or open a demo account it's completely
up to you and we're actually constantly
adding new forex brokers to this table
but we're also declining quite a lot as
well because we're simply not would
happy with the analysis that we've
conducted so keep an eye on a table if
you don't find the one that you're
looking for open a demo account or a
live account if you're happy to start
trading and we shall see you in the next
video