Podcast:

What to look for when choosing a good Forex broker

In this video:

00:23 – Are you looking for a good Forex broker?

01:00 – What makes a broker different?

01:30 – The brokers I personally use and why

02:00 – Who to use if you live in the US

03:01 – Ensuring your funds are safe

03:15 – Use a 5pm EST start of day chart

03:50 – Tight spreads are needed throughout the entire day

05:02 – It’s your decision, your money – choose wisely

05:40 – The JPY strengthened all week

06:04 – Live trading webinar with my clients – great trading results achieved.

What qualities should you look for when choosing a good Forex broker? Let's talk about that and more right now.

Hi, Forex Traders. Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 19th of February.

Are you looking for a good Forex broker?

I've had a lot of emails come through this week, people are looking for a broker to use and coming to me saying, “Andrew, can you make some suggestions of some good, reliable, Forex brokers? I keep reading reviews about these brokers, I'm a little bit concerned about where I should put my money, who do I trust my funds with, and my Forex future with in terms of a broker. Who do I choose? How do I choose one?”

Well, I've just come back from the IFX Expo in Hong Kong and at that event, there were a lot of brokers.

What makes a broker different?

When you look around at brokers, to be honest, a lot of them offer much the same type of thing in terms of similar type of platform, let's call it, MT4, Meta Trader 4 Platform.

They offer a couple extra little gadgets and little incentives. Maybe cash bonuses, whatever it is, to try and get you on board. Basically, a lot of them from the ad side seem very, very similar so how do you determine who to go for and who to trust your money with?

The brokers I personally use and why

Well, for me personally, I only ever recommend four brokers. Three of them I use personally, and they are AxiTrader, Pepperstone, and Go Markets. I've had a relationship with all three of them for many, many years. I've referred a lot of people to them and I've got no problems. The odd time you get one little question here or there but almost no issues whatsoever, and if there have been issues they get dealt with real quick. I personally have quite substantial funds with all three of those brokers and I have no hesitation in recommending those three brokers.

Who to use if you live in the US

The other broker that I also recommend, and this is mostly for my US based clients, and that's ATC Brokers. All four of those brokers, they have very similar things in common. They have good regulations. I have a good rapport with their staff, I've found them very useful, very friendly in terms of looking after clients, good to deal with if you ever get an issue.

The three Australian brokers, they're all ASIC regulated, Australian Securities Investment Commission. Now, if you're in Europe or US, you may think, “Well, why does an Australian broker really appeal to me?

Well, the good thing is with those three brokers in particular, that they all have European and UK servers, they have branches over there, offices over there as well. You can have your accounts in Aussie dollars, Kiwi, Canadian, Franc, Pounds, Euros, so multiple currencies that you can trade in. I believe also ATC Brokers have a branch in the UK, I believe.

Ensuring your funds are safe

As a broker, you need to make sure that your funds are safe with that broker. As far as I can tell, all four of those are about as good as you can get.

The other thing, they also have what I call the correct chart time.

Use a 5pm EST start of day chart