The Right Broker

The question of which broker to use starts with your choice of the market you will be trading. Most brokers specialize in one way or another. There are some that offer trading in multiple markets (such as stocks and forex), but that is the relative minority.

After you narrow down the broker list to just those that offer trading in the market of your choice you next have to consider the account minimums. If your intended initial deposit is not large enough to bypass that concern, this will narrow the list down even further, probably to quite a manageable number.

Now you can start a direct comparison. You will want to evaluate such criteria as:

Speed of order execution

Quality of trade fills (closeness to your desired price)

Commissions and other fees

Security of funds on deposit

Usability of the trading web site or software

Depending on the market you have chosen, you may also add in the following considerations:

Transaction size flexibility

Spreads

Permissible leverage

Availability of the specific instruments you wish to trade

It is strongly recommended that you spend a fair amount of time working with the broker’s demo trading platform. Nearly all brokers have them these days. They allow you the opportunity to get a feel for what it would be like to trade with them and you can evaluate the suitability tools they have available, such as charting, news feeds, technical analysis studies, and the like.

One important thing to be aware of when reviewing a demo trading platform, however, is how closely it matches the live one. Some are essentially identical in all ways. Others, however, are not, and that can make a real difference when it comes to live trading.

A great place to go for information and views on brokers is the forum at Trade2Win where traders share their opinions and experiences. Go to:
http://www.trade2win.com/boards/forumdisplay.php?f=62.

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