Hi, guys, hi from Andrea Unger! Today, I would like to talk about the choice of the broker, which is a very important step for every trader.
Here are some tips for all those who wonder which aspects should be taken into account when choosing the broker.
Look for a Serious Broker
As a first thing, I would suggest that you focus on how serious the broker is and how stable it looks in economic terms.
Obviously, if a broker goes bankruptcy, it’s an unpleasant situation. I passed through it, and it’s something that we all try to avoid as much as possible.
So, try to investigate the brokerage you’re using. Try to find as many pieces of information as you can and try to understand how serious and “in the money” they are, as this is very important.
Don’t think about bonuses or other things they are giving you, because they are not that important. If they give you something, there must a reason why they do so.
Also remember that you don’t have to make money with their money, but that you have to make money with your money.
Don’t choose a broker simply because the entry bonus he gives you is higher than the ones other brokers offer. Look at how serious they are, because this is essential.
Markets and Technology
Second, if you are at a different level and you are structured in a certain way, you obviously intend to trade certain markets.
Verify what markets are offered through the broker. In fact, not all brokers trade everywhere.
So, if you want to trade a specific market, because you have the expertise of that, look for a broker that offers that market. This is pretty much obvious, but it’s better to doublecheck every time.
Pay attention to technology as well and verify that the technology the broker can offer you is a good match with what you need and are looking for.
If you are an automated trader or a systematic trader who works 24/7, and you want something that goes on running with no interruption, make sure that there are no interruptions on the servers.
For example, if you connect a platform to Interactive Brokers, which is one of the most famous brokers in terms of automated trading services, if you connect to its TWS, you must know that there is a planned disconnection every day. There are workarounds to avoid it, but you have to be aware of that.
So, verify if you can cope with it or need to find a different solution.
Stability, technology and, last, commissions. Nobody likes trading costs, but this is the least important thing, because we have to verify that we’re getting a good product first of all.
And then, we can accept a higher level of commissions, if what we get is better than something else. So, look at the commissions, discuss them with your broker, but only as the last choice.
First, look for something that you think can work in the long run and gives you the technology you need. Then, discuss commissions.
Don’t look for money; look for making money, which is what you’re going to do.
Stay tuned. Ciao.