Choosing A Broker For My Situation

This is a discussion on Choosing A Broker For My Situation within the Brokerages forums, part of the Commercial category; Originally Posted by paulkoger Nowler, I know nothing in regards to Oanda , sorry for lacking any valuable input on ...

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Old Sep 28, 2017, 4:25pm   #9
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Originally Posted by paulkoger View Post
Nowler,

I know nothing in regards to Oanda, sorry for lacking any valuable input on that part.
However as you asked for tips in regards to your situation:

I'd recommend to use a trading diary and to track everything you do. One free option is Tradebench. Find out how much commission you're paying percentage wise and if its even realistic to make back that amount with your trades.

One example..My younger brother started trading stocks with 1K$. His broker charged 5$ per trade, 10$ per roundtrip. That 10$ is 1% per trade. Now imagine, on average he made 3 trades per week due to PDT. That cost him 3% in trading fees. 52 weeks in a year, thats 156% return per year that he would have to make to remain at initial balance.

It's a bit harder to track this in forex, but please make sure the odds are not stacked against you, when starting out. In my brother's case, had he used 10K to trade with, total annual commissions would only amount to 15,6%..which in itself is also a very large number, but reachable for a day trader.
Thanks for the feedback mate!

I have a trading journal here on this site and I also have a few pads that I write things in. I have 1 for trades, 1 for planning the week ahead, 1 for education and 1 for scribble work. I only started doing this a few weeks ago and the difference is astonishing! So helpful!

My current broker is a spread broker. I only get charged a spread (not commission) which I ensure is only a fraction of what I expect to make in that trade. Any of those commission based brokers that I have seen charge way too much for someone starting with around 1k. Maybe there are ones who are more reasonable but I have not found them yet.

I have marked City Index as one to look further into. Know very little about them but on first glance they look good.
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Old Sep 30, 2017, 9:38pm   #10
 
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Originally Posted by Nowler View Post
What alternative forms are available to me for around €100.

- Are there brokers with fixed spreads?
- With as little €100/€200, can I trade on a commission basis instead of paying a spread?
- Would trading via a pay by commission basis eliminate this situation with my TP's? .
hi nowler, there are fixed spreads here and there but generally the spreads are part of trading and the account you have with zolanda is possibly the best for you if you want to learn using micro trade sizes. just keep an eye on spread sizes as you have been doing. you wont find commission based trading that is cost effective at your size
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Old Oct 1, 2017, 8:53pm   #11
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Originally Posted by Kaeso View Post
hi nowler, there are fixed spreads here and there but generally the spreads are part of trading and the account you have with zolanda is possibly the best for you if you want to learn using micro trade sizes. just keep an eye on spread sizes as you have been doing. you wont find commission based trading that is cost effective at your size
Hello.
Thanks for the reply my friend.

Yes, the more time that passes the better my conceptual understanding. I am better suited to spread betting, at least until I could raise 10, 20, 30k and then perhaps reevaluate. I have been wondering what the likelihood of my spread broker refusing to keep me on as a client if I was to become really profitable.
One way to know for sure I guess...
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Old Oct 2, 2017, 1:17am   #12
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Nowler,

At your present stage of development I think you are probably worrying too much about the wrong things.

There is a certain pathway that you will take and that can take years in the journey. Specific to a broker, you need time to develop an understanding of your own requirements and only with that you can start matching against broker offerings. Broker spread is least of your problem. Being profitable takes care of a lot of associated cost. If you are currently not consistently profitable, the best spread in the world would not save your trading account. Don't underestimate the difficulty in achieving consistent profitability. In a research I have seen, less than 1 % of traders can achieve that performance (between quarters).

You need to work out your own trading style and the required trade strategies. Only with that you can determine your trade frequency, execution requirements, platform support tools and associated peripheral tools so necessary to your success. Are you a scalper, swing trader, trend trader or risk event trader? If you are a scalper, spread, execution and tick chart becomes important. If you trade trends then spread is for all practical purpose a non consideration. If you are an event trader, then squawk and real time news source becomes a primary consideration. You need to work through where you want to be in the scheme of things. This can take years.

Finally when you are ready to put serious money into an account, your primary consideration should include client funds segregation and the legal jurisdiction offering that protection. Personally outside of the US, there are only two country jurisdiction that I would at least have some faith in i.e. UK and Australia.

In the meantime enjoy the ride and all the best to your success.
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Old Oct 2, 2017, 1:40am   #13
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Nowler,

At your present stage of development I think you are probably worrying too much about the wrong things.

There is a certain pathway that you will take and that can take years in the journey. Specific to a broker, you need time to develop an understanding of your own requirements and only with that you can start matching against broker offerings. Broker spread is least of your problem. Being profitable takes care of a lot of associated cost. If you are currently not consistently profitable, the best spread in the world would not save your trading account. Don't underestimate the difficulty in achieving consistent profitability. In a research I have seen, less than 1 % of traders can achieve that performance (between quarters).

You need to work out your own trading style and the required trade strategies. Only with that you can determine your trade frequency, execution requirements, platform support tools and associated peripheral tools so necessary to your success. Are you a scalper, swing trader, trend trader or risk event trader? If you are a scalper, spread, execution and tick chart becomes important. If you trade trends then spread is for all practical purpose a non consideration. If you are an event trader, then squawk and real time news source becomes a primary consideration. You need to work through where you want to be in the scheme of things. This can take years.

Finally when you are ready to put serious money into an account, your primary consideration should include client funds segregation and the legal jurisdiction offering that protection. Personally outside of the US, there are only two country jurisdiction that I would at least have some faith in i.e. UK and Australia.

In the meantime enjoy the ride and all the best to your success.
Hey mate.
Thanks for the great input!

I do prefer to race ahead a little just to get a quick look so that when I encounter things at a future time, it won't be the first time I've considered it. I am being a bit presumptuous though, I will admit it.

I'll rein myself in a bit
Projecting forward can be troublesome but it's so tempting. It's like the forbidden fruit...
I think I am doing impressively well for such a small amount of time but I do get put back into my place if I start getting a bit too big for my boots.

This whole process is addictive! It's like a battle! Me against the market! I can clearly see that making money is a reality but it's the discipline to keep yourself in check that's the difference maker.

I'll just keep going... Reassess things toward the end of the year I guess.
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Old Oct 2, 2017, 6:36pm   #14
 
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Originally Posted by Brumby View Post
...There is a certain pathway that you will take and that can take years in the journey. Specific to a broker, you need time to develop an understanding of your own requirements and only with that you can start matching against broker offerings. Broker spread is least of your problem. Being profitable takes care of a lot of associated cost. If you are currently not consistently profitable, the best spread in the world would not save your trading account. Don't underestimate the difficulty in achieving consistent profitability. In a research I have seen, less than 1 % of traders can achieve that performance (between quarters).
You need to work out your own trading style and the required trade strategies. Only with that you can determine your trade frequency, execution requirements, platform support tools and associated peripheral tools so necessary to your success. Are you a scalper, swing trader, trend trader or risk event trader? If you are a scalper, spread, execution and tick chart becomes important. If you trade trends then spread is for all practical purpose a non consideration. If you are an event trader, then squawk and real time news source becomes a primary consideration. You need to work through where you want to be in the scheme of things. This can take years.

Finally when you are ready to put serious money into an account, your primary consideration should include client funds segregation and the legal jurisdiction offering that protection. Personally outside of the US, there are only two country jurisdiction that I would at least have some faith in i.e. UK and Australia.

In the meantime enjoy the ride and all the best to your success.
Very nicely put Brumby i must say, and i agree with what you say

The "less than 1% make a profit" statistic seems to have little meaning though without elaborating more, do you have a link to it?
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Old Oct 2, 2017, 6:58pm   #15
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Very nicely put Brumby i must say, and i agree with what you say

The "less than 1% make a profit" statistic seems to have little meaning though without elaborating more, do you have a link to it?

That would be nice actually.
I keep hearing people throwing around these percentages but I'm getting the impression that nobody really knows themselves... It's just a regurgitation of something said by someone that heard someone else say it about someone else

I've heard that 90% of new traders lose 90% of their account in 90 days. This sounds a little fishy in my opinion. Perhaps the study that this was taken from was just rounding numbers so as to have a nice tag line but...

I just go with the thought that 90% can't do it, 9% can but only 1% make a killing at it (millions)
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Old Oct 11, 2017, 10:31am   #16
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Choosing a broker is very dedicated decision, so it should be in cool mind and the broker can affects the result of our trading with certainly.
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