What to look for in a brokerage

Discussion in 'Forex' started by Georgii, Oct 13, 2009.

  1. Georgii


    Hello all,

    I am interested in what parameters you suggest having for investigating a particular brokerage.

    From everything I have gathered, brokerages have the following risks:

    * Being undercapitalized and going under, with your account money forever lost.

    * Widening spreads on you during volatile markets, esp. when there are news releases.

    * Not filling your order at the desired price, or taking too long to execute an order.

    * Not executing stop orders.

    * Having false price feeds that are either defective or intentionally manipulated.

    * Having server problems and software freezes, which can cause a problem if you have an open position without a stop order.

    * Bad customer service (not being able to get a human on the phone, or getting someone who doesn't care).

    * Offering poor rollover rates.

    * Running stops if they are a dealer desk, though I imagine this goes on in the interbank market as well.

    Have I missed anything?

    I have checked the site forexpeacearmy.com as well as forexjustice.com for brokerage reviews. My criteria are to find reviews that have over 50 people, because I think that makes it harder for any shilling to go on by brokerages.

    It seems to me that every single broker has a horror story related to it, its hard to know whether its the trader's fault, an odd incident, or business as usual. Does anyone have any ideas for how to sort the wheat from the chafe?

    Also, do any of you pay for independent price feeds, in order to verify if a broker is giving you good price information?

    Lastly, does the broker's physical proximity to you help with more accurate price information?

    Thanks for your help and advice!