Forex Broker Comparison for Beginners - ForeXposed


Exposing Forex World

Monday, August 21, 2017

Forex Broker Comparison for Beginners

Forex Broker Comparison for Beginners
Online online brokers – A comparison for Beginners

So you fancy a day trader, do ya? Well, beyond the basic equipment requirements of a computer and a fast Internet connection, you will need a broker to execute your orders. See, you can not call the NYSE or NASDAQ and ask Chuck and Larry on the floor to do a job on your behalf. No, in order to place a buy or sell your shares or preferred future, you will need an account with a company licensed broker / dealer that holds a seat on the exchange.

Luckily for you, there is an online brokerages myriad reduction would be happy to have you as a customer. Your job as a trader grass is which online broker is best for your investment philosophy, style of trading, and research needs. Choosing an online discount broker is an important decision, and we want you to make an informed decision. So enjoy this brief online broker comparison, and if you have something to contribute to the discussion, please join us for free Q and a forum mentioned below.

What will you trade?

First of all, you have to wonder what types of investment products you are considering trading. There are stocks, of course, but many day traders also like to trade options, futures, forex currencies and commodities as well. If you think you might want to try the trade any or all of these more sophisticated products, it is in your interest to choose a broker with commercial privileges in all these markets.

A word on commissions

Costs are another important consideration when picking an online broker. Although some companies claim to be discount brokers, the fees charged by these financial institutions tend to run the gamut. So read the fine print of the schedule of the commission of any brokerage house to see if their reductions apply only after you have experienced a monthly quota of trades or there is always one package.

You get what you pay for

Now, for the brokers themselves. Everyone wants to negotiate cheap online stock, right? But with many of these Internet discount stock brokers, sometimes you get exactly what you pay for. So, try not too caught up in the actual cost of each roundtrip trade. Sometimes it’s worth paying a few hundred dollars or more per trade if you get access to better graphics, a robust data stream, and a wealth filtering and search tools available.

Forex Broker Comparison for Beginners

Interactive Brokers

POSITIVE: If you want access to global markets, intends to be a strong lever effect to trade using margin loans, and you like ultra low cost commissions and Interactive brokers is for you. Considered one of the top brokers in discount for international trade because they give you access to over 80 market centers in 19 countries, Interactive Brokers is a gem for active traders who require rapid execution and who trade jackpots on margin. With their Smart Routing technology that routes your order to fill at the best available price, and extremely low margin loan that let individuals borrow as low as 0.50% below Schwab and Fidelity, they are the one of the cheapest online brokers. IB recently reduced their futures commission for only 85 cents (flat) by contract or as low as 25 cents if you reach certain levels of volumes. And their actions and ETF commissions to only US $ 0.005 share all-in are easily the lowest in the industry. Finally, the IB market data feeds are waived if you spend more than $ 30 per month in commission

Negative :. It is not all sunshine and lollipops though. Interactive Brokers lags other online brokers in a number of ways. On the one hand, their high initial deposit of $ 10,000 excludes a number of investors from opening an account. Second, their customer service is less than stellar. And if you need to attend a business broker because your computer is dead, good luck. What’s more, their software is very buggy, tools for mapping and screening are rudimentary, and tick data data flow filters, so traders who want to create graphics based on the frequency TICK not get a precision picture.


POSITIVES: If you want the resources of a large financial institution, such as a thorough search inventory and analysis, access to various investment products from mutual funds to insurance and annuity could then Fidelity be the discount broker for you. Fidelity is proud to offer the most free and independent research all online brokers. But more than that, they are also known for having some of the most sophisticated tools for test trading strategies, as well as some of the lowest trading commissions online stock. Their $ 7.95 per trade online is great for active traders, especially as it is charged a flat rate regardless of the number of shares. Rep-assisted trades will cost you $ 32.95 if you need to call and speak with a live dealer, but at least the opportunity to do so is there. And with a small minimum deposit of only $ 2,500 required to open a Fidelity brokerage account, it has a low cost of entry for novice traders

NEGATIVE :. On the negative side, Fidelity is not a broker-term and does not provide access to the futures market in case you want to try day trading e-mini contracts, a very popular instrument and preferred trading for day traders. Moreover, their profit margins are not cheap, charge you 8575% if you have less than $ 10,000 as a debit balance. And if they have excellent software for the design and negotiation test your trading strategies before making the trade, their Wealth Lab Pro software is available for customers who place more than 120 jobs / year and $ 25,000 in assets.

Forex Broker Comparison for Beginners


POSTIVES: Charles Schwab is another all around great online broker. It is not something they do particularly well, but they tend to do everything better than average. Although this is not the cheapest broker there, they are not the most expensive either. In May 2010, Schwab now charges a flat rate of $ 8.95 per transaction online for all stocks and not Schwab ETF, which is the same price as active traders pay well. They will even give you 150 free trades when you open an account with $ 50,000 or more and use these trades within 90 days. In terms of accessibility, Charles Schwab is one of the best choice for new investors, which allows you to open an account with as little as $ 1,000. In addition, because Schwab is a full service broker with sales representatives and a search service, you have access to advice online or in person at one of their branches

NEGATIVE :. While margins rates are not as cheap as Interactive Brokers, 8.5% for debit balances up to $ 24,999, they are lower than the Fidelity charges. On the downside, Schwab does not offer futures and only offer their best characteristics as level 2 quotes, deep screener and software strategies and real-time mapping systems for active traders who make 120 or more equity and options trades every year.


Overall, you can not really go wrong with one of the most popular online discount brokers. While some surpass others in certain areas of the negotiations, they are all very good to provide real-time data and executing orders as fast as they are made. Still, it’s good to know what each dealer specializes in so you can make an informed decision before opening an account. Remember that Interactive Brokers is great to give you global access to foreign markets for an account, and allow you to borrow money at low rates for trade. They are also a futures broker, and you negotiate these contracts lever strongly while other brokers mentioned do not. Fidelity is the king of search and is the second lowest in commission fees with their flat rate $ 7.95 fee. Schwab is an excellent choice for new investments who want a balance of features, but are not yet ready to drop too much in their account.