BROKER

For Forex Scalping it is important that you carefully select a suitable Forex
broker based on these criteria. Your Forex broker must provide a live data
feed for charts (further explained below), must have very competitive spreads
for the currency pairs you will be trading on, and the trading software must be
easy to use & quick to execute trades with. forex sato
I have had numerous trading accounts with various brokers (some real money
and some just demo) and at the time of this writing would recommend to my
friends to use FXCM or RefcoFX. This isn’t to claim that they are the best of
all brokers, but overall they are the ones I personally most recommend for
several reasons.
FXCM (and RefcoFX that is pretty much similar) has a very simple user
interface (the trading station software), so simple that even a child can be
taught to use. However other brokers, such as Forex.com and ACM have nice
web based trading interfaces that is simply too complicated for a newbie to
use with ease, and takes far too long to execute a trade when precious seconds
count.
In this eBook I show how to place trades on the FXCM system because it is so
easy to explain, and easy for you to do. Thus all examples in this eBook are
based on FXCM. I have chosen against explaining the methodologies
applicable to such brokers as Forex.com, ACM, and others simply because it
would take far more time to explain how to place OCO, IF THEN, etc…
trades, and the nuances of stop / limit orders. When you become more
advanced as a trader you can figure these out on your own (it took me a while
to wrap my brain around those concepts).
Different brokers also offer different pip spreads on the various currency
pairs. For example, FXCM unfortunately offers 5 pips for GBP/USD (too bad
as it is one of my favorite pairs to trade and scalp), so once you become more
advanced then you might want to have two or more accounts with various
brokers to take advantage of the best that they have to offer. Some brokers
have lower pip spreads than others (i.e. you can get 2 pip spreads on some of
the majors – if your account is large enough), but some of those brokers don’t
have their spreads “fixed”, meaning that they can widen during volatility (but
is generally not a problem for most of the time). FXCM is fixed (good for
you).
Some brokers have streaming executable prices, meaning that the price you
click on is the price you get (even if the market has already moved), whereas
some brokers “request for quote” meaning that if you are experiencing a
shooting market (rapid price changes) then your trade might fail to be entered
(can be frustrating at times). Unfortunately FXCM seems to me to be one of
those. .. forex sato
There are many brokers to choose from. Just to name a few more here are
some others: GFTforex, XpressTrade, CMSforex, FXsolutions, etc… (like I
said, there are others. Google “forex broker”, or look through trading
magazines if you want to find more.)
There are more issues to be aware of in choosing a Forex broker, but what
I’ve covered here present some of the most important
considerations. Generally speaking, stick with the bigger, more popular
brokers. Before dedicating your funds to any in particular it is wise to get
demo accounts with several that you might use to give them a test
drive. Initially it is best to use one broker (FXCM or RefcoFX is a good
choice for your first account), but later (once you’ve gained some experience)
get some more real accounts with other brokers so that you can take advantage
of the stuff that is better with them.
FXCM isn’t the absolute best broker in the world – nor is any broker in my
opinion (they aren’t my primary broker, but I wouldn’t recommend my
primary broker to novice traders as they are one of the more “complicated”
ones). They all have their strengths & weaknesses. I have selected FXCM to
be the broker that all the examples of this eBook use simply because it would
be difficult and confusing to write this eBook trying to explain the examples
with multiple broker variables. I had to pick one, and FXCM is the one I went
with. It is (in my personal opinion) the easiest and best choice for a novice
trader to start trading with, and so that is also why I am using FXCM as the
broker for all the examples of this eBook. They are, for scalp trading
techniques, one of the better, and easiest to work with brokers.
If you are one of those people that insist on finding what you prefer then feel
free to test out the demo versions of a bunch of brokers, but if you are willing
to just take my recommendation then go with FXCM (or RefcoFX) to start
with. At the time of this writing it is the broker I would most recommend to
the average & beginner trader, however if I later change my mind I’ll be sure
to provide my latest recommendation within the online resources section.
Additional Tip: Most brokers don’t always honor your stop orders during
extreme volatility such as around Fundamental Announcements. At the time
of this writing there is a broker that is currently honoring stops even in those
volatile times, and in the eBook “Forex Sailing” I’ll tell you who they are.