Should I go for Broker with Low Spread or with Bonus?
I don't recommend to use any bonuses as most of the times they work against you. Regarding low spreads you can find them with such brokers like FXCM, Нotforex etc.
Check feedback and regulation before playing ball with any of them.
Thanks Gerry,
From the looks of FXCM's Shares Price, I'm afraid to deposit money with them. Hotspot, I will check it out.
I've found 3 other broker seem not bad, could you also advise?
z.com
philip capital Uk
exness
Cheers
TradeNext
Your right, an element of risk needs to be considered however in regards to TradeNext please note that the firm has despatched ALL client money and their are no issues/ problems/ concerns with client funds, the board took a prudent approach while it was and currently is solvent to assess the business.
What yo should be weary of is the too good factor, basically someone offering the world, there will be differences in pricing but overall take a risk-based approach.
Thanks
Your right, an element of risk needs to be considered however in regards to TradeNext please note that the firm has despatched ALL client money and their are no issues/ problems/ concerns with client funds, the board took a prudent approach while it was and currently is solvent to assess the business.
What yo should be weary of is the too good factor, basically someone offering the world, there will be differences in pricing but overall take a risk-based approach.
Thanks
options-george
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I agree with one of the other responders above in that bonuses should generally not be take into account in choosing a broker.
The terms and conditions are generally such that you would need to open and close a very large number of trades and/or a large amount of notional value in order to earn the bonus. To such a degree that it really encourages over-trading and other bad trading habits!
Online casinos operate in the same way in offering new player bonuses and/or monthly bonuses (and they do so for the same reason - a very competitive market place). However, the terms and conditions of online casinos are generally much more favorable than the bonuses offered by brokerage firms. And you also have to remember that the house edge on the casino games are often lower than the edge of the broker in terms of transaction costs (if one assumes that price movements are random).
Every now and then there is a very good-value bonus, but these are rare. For example, some time ago ETX offered to refund up to £300 of trading losses as long as you open and closed just 5 trades - but I have not seen many of these around.
The terms and conditions are generally such that you would need to open and close a very large number of trades and/or a large amount of notional value in order to earn the bonus. To such a degree that it really encourages over-trading and other bad trading habits!
Online casinos operate in the same way in offering new player bonuses and/or monthly bonuses (and they do so for the same reason - a very competitive market place). However, the terms and conditions of online casinos are generally much more favorable than the bonuses offered by brokerage firms. And you also have to remember that the house edge on the casino games are often lower than the edge of the broker in terms of transaction costs (if one assumes that price movements are random).
Every now and then there is a very good-value bonus, but these are rare. For example, some time ago ETX offered to refund up to £300 of trading losses as long as you open and closed just 5 trades - but I have not seen many of these around.
I guess I will go ahead to try Phillip Capital UK, as I'm Singaporean Living in London, and they are a Singaporean Company, I hope I'm making a right choice, and will update the review of Phillip Capital later...
If anyone of you have experience trading with them, please do let me know....
And Happy Friday! It's Weekend again!!!:clap:
NVP
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I would go for a broker who may possibly still be around in 12 months with your deposited funds still accessible ..............thats a good start
N
NVP
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happy coincidence with just 9 posts on the table ? :whistling
I would go for a broker who may possibly still be around in 12 months with your deposited funds still accessible ..............thats a good start
N
But I need to deposit with them in the first place... PhillipCapital UK only exist in UK less than a year!!!
To start off from 1975 in Singapore, I guess should be safe??? Do you think they will be like MF Global???
Jason Rogers
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Hi Beachyman,
While I'm not authorized to comment on our stock personally, our CEO Drew made the following comments in our most recent earnings conference call:
"We have solid financial position and we believe that this is something that is not reflected in the stock, but we have $254 million in operating cash, $85 million in regulatory capital surplus. For our customers, the company has a very solid financial footing and we believe that will be reflected once we fix the optics of the stock next year."
It's important to note that the stock price is a reflection of shareholder value as a result of the Leucadia loan which we are on track to repay in Q1 of 2016.
Below is an excerpt from a LeapRate article about this:
"most of the overall writeoff/loss is non cash and non operational, and has nothing to do with FXCMs operations and corporate health, but rather with accounting charges FXCM needs to take due to US GAAP accounting rules thanks to the future benefit that FXCM gave up to Leucadia."
The main point here is that the terms of the Leucadia loan impact FXCM shareholders, not FXCM account holders. If you have any further questions about this, you're welcome to contact our Investor Relations department.
Since we are a publicly-traded company (NYSE ticker: FXCM) the details of our loan from Leucadia are well known. By contrast, most other forex brokers are privately-held companies, so it's hard to know how much debt they have on their books or the state of their finances. As highlighted above, FXCM is well capitalized, and you can confirm this for yourself by reviewing our financial data which are publicly available.
Furthermore, FXCM is in compliance with all regulatory capital requirements in the jurisdictions in which we operate. That is particularly noteworthy, since we are subject to a greater level of regulatory scrutiny as one of the only retail forex brokers in the world that is regulated on four continents.
Your forum profile mentions that you live in the UK, so you'll be happy to know that FXCM is regulated in the UK by the Financial Conduct Authority (FCA). That means your funds as an FXCM UK client are protected for up to £50,000 by the Financial Services Compensation Scheme.
Low spread is good but be careful with bonus broker, I see many broker offer bonus but not too many traders really claim it. Bonus is not a gift, it could be a trap. Just simplify it by trading with only best spread broker, except you have a proper strategy to get the bonus.
Thank you for the Clarification...
Yes, sometimes the deal are too good to be true, but I just can't turn it away.
If the broker give me good Spread plus Bonus, It should not be ignored.
As there are too many brokers around, whoever saw anything interesting, please share... Sharing is Caring....:smart:
What? US$4 Per Round Turn and 0 Spread??? Who is offering that?
Yes, sometimes the deal are too good to be true, but I just can't turn it away.
If the broker give me good Spread plus Bonus, It should not be ignored.
As there are too many brokers around, whoever saw anything interesting, please share... Sharing is Caring....:smart:
The broker is am trading don't offer any bonus program but the spread on EUR/USD is from 0.7 spread and 40 for Gold, no commission. Is that fine to trade?
Sounds decent!! Gold for 40 Cents, not really attractive, but normal from the rest that I've seen, I'm trading with FxPro and PhillipCapital
FxPro around $0.20 Spread & commission $45 Per Million Traded, EURUSD 0 Spread & commission $45 Per Million Traded. not sure how to calculate the commission for Gold.
PhillipCapital UK around $0.30 Spread & commission $10 Per Standard lot, EURUSD 0 Spread & commission 0.3pip Per Standard Lot.
fxreviewer
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Bonuses usually given by no ECN Brokers (dealing desk companies) and earn large funds can only via ECN Brokers