Choosing the right broker is the most important aspect of profitable trading and believe me, choosing the right broker will save you a lot of worry, hassles, and inconvenience. Practically all publications deliberately provide false information; therefore, many traders mistakenly believe that success in trading depends on psychology, money management, and what trading system you use. This is not the case!
When you are trying to choose the right broker, team FX Trading Revolution has dozens of the most detailed requirements that a good broker should meet. These are the brokers we use for our own trading. To make this article in our educational series short and clear, we will illustrate four main assumptions that summarize all our requirements.
1) Security of the capital and broker's regulations
Absolutely the most important condition. Brokers must be regulated for the entire European Union, any client funds must be separated from corporate funds. Now, these requirements fit most brokers and they are a standard. Preferably, the broker should not have any fines, because they are usually the latest response to unfair practices.
2) Fast deposits and withdrawals
The standards of quality brokers should also be quick deposits and withdrawals by bank transfer within 1 to a maximum of two business days.
3) The best broker is the one with which you will be able to achieve the most profitable results
This is the golden rule of success in the financial markets and practically our first priority. As we have stated in other articles, there are many differences between various brokers – whether in their approach to clients or the quality of their technology and liquidity providers.
However, beware! Many traders think that they will achieve the most profitable results with brokers that have the lowest spreads. As a result, the only thing that most traders are interested in is spread. However, this is a huge mistake, and in reality often, the complete opposite is true.
Remember this one piece of golden advice:
Everything depends on whether the main goal of the broker is his clients’ profitability, if so, the broker will settle for lower profits in the short term (the broker's profits come only from the spread / commission), but long-term satisfied clients. Or, on the contrary, if trying to bring in as many clients as possible is his business model, he will be greatly interested in his clients losses, and thus has many short-term clients. Deciding which option is the best for us as traders probably does not need any further explanation.
As you can see on the homepage of our website, identical automated strategy trading with various brokers can has entirely different results.
Your broker may affect the results of your trading in a lot of different ways – such as quality of his technology, the quality of his liquidity providers, and his approach to his clients – and if he is using any type of unfair practices such as widening spreads, artificial slippages, freezing trading platforms and many other ways.
You will find out the quality of a broker only after tests on real accounts. Team FX Trading Revolution has tested hundreds of brokers around the world on real trading accounts. On these tests we had to expend not only a lot of effort, but also financial resources. However, especially the fact that only empty words and theories are not enough motivated us, and because we can also show retail traders unbiased information about the huge differences that actually exist between brokers.
At the same time, we also realized that in the financial markets we started without any professional information and experience, and in the beginning that such materials would have been worth the price of gold and would have saved us considerable financial resources that we have spent during the process of gaining knowledge and experience.
We therefore recommend choosing a broker with whom you will be able to achieve the most profitable trading results. On our Brokers Truth page, you can find a comparison of the most interesting results for different brokers from our testing on live accounts, along with what brokers our team FX Trading Revolution consistently achieves the most profitable results.
4) Overall behavior and approach of a broker
Aggressive phone calling, investment advice, and marketing in the form of deposit bonuses, high financial leverage, extremely low cost spreads, or if the broker flaunts their expensive sponsoring of international football clubs, formulas, etc. - nothing that does belong to a professional broker’s approach.
A professional broker should act friendly with a focus on creating an appropriate environment for profitable trading and it should not be a problem for him to meet your requirements. At the same time, the broker should not be worried about talking about the facts that we might be displaying on our website at FX Trading Revolution, and should be a partner on whom you can rely.
We strongly warn other traders and also advise that the choice of broker determines whether you will be able to achieve long-term profitable results in the financial market or you will lose options for profitable trades. Before looking for a trading system, improving money management, and training in psychology we recommend that you choose the right broker.
We also recommend visiting our site for the extensive reviews of brokers from around the world on real accounts by the team FX Trading Revolution here.
If you have any questions regarding the choice of the right broker or any other related topic, feel free to contact our team.
Team FX Trading Revolution
1. FX Trading Basics that you must Know
2. Know Your Enemy - Participants of Markets
3. Insider Information about Interbank Trading
4. What Brokers Never Want You to Know!
5. Dirty Practices of Brokers that Cost You Profits
6. How to Choose the Best Broker
7. The Most Profitable Trading Strategies
8. The Four Steps to Begin Trading Profitably