Top 5 questions to ask when choosing a right broker

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Will my trade be executed at the price I clicked?

The lower the spread, the better for you. But whether you pay even this low spread depends on good order execution. In case of requotes, delayed order execution, slippage or stop-hunting, the lowest spread will not help you. These things, if present, will of course only happen in live trading and never on the demo account.

Example:

You want to enter a position at the displayed price but your position is executed a few pips to your disadvantage or your order is rejected altogether. If this happens again and again, every trader can imagine what this means for trading, because you have to recover all these losses first. You cannot look into a broker in advance, however, you should be aware of the possible problems so that you can take immediate action if any of these problems occur. One of the best ways to avoid such complications beforehand is to make sure that the broker is supervised by a reputable regulatory body so that one can turn to them in such cases.

Do I have unlimited access to a demo account?

Moreover, a demo account can be very helpful to observe how prices and spreads change under different market conditions and give them an idea of how good the Forex broker's order execution is. Of course, this is only the case if the demo platform behaves the same way as the live platform. Therefore, ask the broker if the demo platform differs from the live platform and if so, how much. To test new trading strategies and approaches, you should have unlimited access to a demo account.

How are the interest and payments calculated?

Forex trading accrues interest when trading overnight or over the weekend. This means that you will be charged interest based on the size of the open positions that you have not closed by 5 p.m. EST depending on the position direction you pay or receive. Intraday traders therefore usually try to close their positions before then. For traders whose investment horizon extends beyond intraday trading, interest rates are a non-negligible consideration when choosing a forex broker. Therefore, before opening an account, ask the forex broker if and how much interest you have to pay or receive for holding positions overnight.

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If the broker offers fixed spreads

In Forex trading, prices and spreads change with every tick of the market. With a broker like Exness Singapore that offers fixed spreads, they are usually higher than with a broker that offers variable spreads. Is it worth it ? This depends decisively on your trading behavior. With fixed spreads you can trade during news, events or other more volatile market situations where the spread of a variable broker will most likely widen. But whether the fixed spread broker will allow this if you make profits with this strategy or finds excuses is another matter. So always read the fine print and see if there are any exceptions or regulations for orders placed during news or other volatile market periods. If this is the case, you will be paying for the insurance of the fixed spread for virtually nothing. Another point is the order execution. What regulations does the broker have for requotes, partial executions or rejecting orders. Make sure that the broker has the necessary liquidity to execute your orders correctly and that you get the advertised spread.

Do you have full access to information?

Some Forex brokers or banks are reluctant to share information that helps the trader make profitable trading decisions. Other brokers share information such as the current distribution of their clients' long and short positions (called client sentiment) with all traders. This is information that may help them make profitable trading decisions.

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