How to Compare Brokers (1/2) Read the entire post to know what is best for you: Like this page and ask your questions http://bit.ly/2IblW9d Don’t forget to subscribe to my YouTube Channel https://www.youtube.com/channel/UC220CmkLHzZ0nFaI4N2ajqQ 1. Spread / Commission 2. Leverage 3. Trading Platform 4. Deposit and Withdrawal options Spread or Commission The spread or commission fundamentally impacts every trader. It is effectively the ‘cost’ of making the trade. It is therefore a very significant value to compare one broker to another. There are complications however. The spread will not only differ broker to broker but also asset to asset. So a broker may have the smallest spread for Forex pairs, but the largest for indices. Depending on what assets a trader wanted to invest in, the broker might be the cheapest choice or the most expensive. So when comparing brokers based on the spread, ensure you are checking the spread on the assets you will be trading most. Margin (or Leverage) The margin is the percentage of the overall trade value that a trader must deposit (and commit) in order to open a trade. So a £1,000 trade on the GBP/USD currency pair may only require a deposit of £50. The position however, has exposed the trader to £1,000 worth of risk (the risk of losing the entire investment is extremely small, but that is the value of the position) hence the warning attached to CFD trading “losses can exceed your initial deposit“. Margin is also referred to as ‘leverage’. Where this is the case, the leverage is often illustrated in terms of multiples so 200:1 would indicate leverage of 200 times the deposit. The equivalent margin would be 0.5%. So when comparing brokers, a low margin requires smaller deposits. This will be important to some traders, but less so to others. Trading platform The actual trading platform is often not considered before a trader makes a broker choice. That however, could be a mistake. Yes, most platforms will have similar functions but as with anything, the usability and look and feel will be a matter of personal preference. It is very important to be trading on a platform that is familiar and easy to use. It is not uncommon for traders to miss prices, or worse, make mistakes trading, because the trading platform did not suit them for whatever reason. The ‘Cancel‘ button might be blindingly obvious to some, but if you are the trader that ended up entering a trade by mistake, you might wish you had based a broker choice on the simplicity of the trading platform. All of the platforms listed here offer demo accounts try before you buy. Deposit and Withdrawal options Perhaps not a trader’s first thought but if moving money in and out of trading accounts has been problematic for you in the past, it is worth checking that the methods you want to use to fund and withdraw from your account are available with each broker. #NMBO461

How to Compare Brokers (1/2) Read the entire post to know what is best for you:

Like this page and ask your questions http://bit.ly/2IblW9d
Don’t forget to subscribe to my YouTube Channel
https://www.youtube.com/channel/UC220CmkLHzZ0nFaI4N2ajqQ

1. Spread / Commission
2. Leverage
3. Trading Platform
4. Deposit and Withdrawal options

Spread or Commission

The spread or commission fundamentally impacts every trader. It is effectively the ‘cost’ of making the trade. It is therefore a very significant value to compare one broker to another. There are complications however.

The spread will not only differ broker to broker but also asset to asset. So a broker may have the smallest spread for Forex pairs, but the largest for indices. Depending on what assets a trader wanted to invest in, the broker might be the cheapest choice or the most expensive.

So when comparing brokers based on the spread, ensure you are checking the spread on the assets you will be trading most.

Margin (or Leverage)

The margin is the percentage of the overall trade value that a trader must deposit (and commit) in order to open a trade. So a £1,000 trade on the GBP/USD currency pair may only require a deposit of £50. The position however, has exposed the trader to £1,000 worth of risk (the risk of losing the entire investment is extremely small, but that is the value of the position) hence the warning attached to CFD trading “losses can exceed your initial deposit“. Margin is also referred to as ‘leverage’. Where this is the case, the leverage is often illustrated in terms of multiples so 200:1 would indicate leverage of 200 times the deposit. The equivalent margin would be 0.5%. So when comparing brokers, a low margin requires smaller deposits. This will be important to some traders, but less so to others.

Trading platform

The actual trading platform is often not considered before a trader makes a broker choice. That however, could be a mistake. Yes, most platforms will have similar functions but as with anything, the usability and look and feel will be a matter of personal preference. It is very important to be trading on a platform that is familiar and easy to use.

It is not uncommon for traders to miss prices, or worse, make mistakes trading, because the trading platform did not suit them for whatever reason. The ‘Cancel‘ button might be blindingly obvious to some, but if you are the trader that ended up entering a trade by mistake, you might wish you had based a broker choice on the simplicity of the trading platform. All of the platforms listed here offer demo accounts try before you buy.

Deposit and Withdrawal options

Perhaps not a trader’s first thought but if moving money in and out of trading accounts has been problematic for you in the past, it is worth checking that the methods you want to use to fund and withdraw from your account are available with each broker.

#NMBO461

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