by Joshua Geralds
Choosing a Broker

Almost every sort of trading needs you to go through a middleman. That middle man we call the broker. Be it stocks and shares or forex or any sort of investment we as retail traders need brokers to facilitate the buy/sell process.

Some of the most important things you have to note about brokers are:

1.Reliability.
The most important factor that would distinguish a good broker and a scam case is the reliability issue. Would you like to have brokers who after you had funded your account and traded with them, suddenly declare bankruptcy? Or after you made some profits, they decide not to pay you your dues!

2.Spread.
The spread is basically the commission that the brokers take when they do a trade for you. A spread is the difference of the sell and buy back price. Some brokers practice a fixed spread, there are some the have a fluid one that depends on market prices and conditions. As with the first rule, go with one that is reliable. Having your spreads change on you during a trade is very stressful especially for forex traders. Your stop loss might be hit just because the brokers decide to increase their spreads.

3.Execution time.
For more time sensitive markets like the forex and options/futures markets having your trades executed on the spot is crucial. A two second delay could mean a profit or a loss. I have personally experienced many times when I was trading the news and the broker delayed for just a couple of seconds. Wham! I was knocked out of the trade because the trade went against me!

So now its time for you make an important decision, choosing the type of broker for you.

For rookie traders I would recommend that you read my free ebook and find out for yourself which broker is the one for you. Or you could always do more research online. But the best way I believe is to test and try a live account. Fund it with a small sum, and trade small. When the broker has proven the 3 points above then trade big.

Dr. Joshua Geralds is a successful investment specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

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