The number of forex brokers in the German market has grown despite the Cyprus crisis and become the broker market traders tend complicated. also the market model, the trading platform and the market orientation of the Brokers have to find a trustworthy and helpful Forex Broker in addition to the regulatory environment and trading conditions are scrutinized. A checklist for the Forex broker comparison.
Online Forex Broker Comparison: A checklist
- Regulation and deposit insurance: The best UK or «core Europe»
- Trading platform: access routes, Automated trading, chart analysis tool
- Social Trading
- (External) offers for Analysis and Research
- Training and learning opportunities (webinars, seminars etc.)
- Market model: Market Maker, ECN STP oder?
- Market Orientation: How important is the broker of the German market?
- Price policy: spreads, commissions, bonuses new customers
Regulation and deposits
The domicile of a broker decides on the appropriate regulatory authority: In German brokers the BaFin is responsible, at the British FCA and brokers from Cyprus CySEC. Branches in other countries, however, are not relevant. Although Mark z. B. Cypriot broker with a German branch of the BaFin.However, this is responsible for little more than checking the postal address of the branch.
For the deposit guarantee shall prevail where bank holding the account has its seat and to which DGS it is tethered. Very few brokers have a full banking license and keep the customer funds in banks that are not necessarily in the same country must be established.
Almost all trading platforms now offer Chartingtools and interfaces to various data sources. MT4 and MT5 cut in comfort, equipment and usability from good, but not necessarily the best. But the platforms are recommended for those who act automatically and not necessarily want to own program: For no other platform are so many «free» scripts available as for MT4. This is due to the fact that the platform for Forex Broker is available without a license fee. Most brokers provide their platforms now as a download version as well as web and mobile versions.
Social Trading, Analyse and Know-How
The majority of the foreign exchange broker aiming with the trading platform to a complete solution for traders from: About the rudimentary trade and analysis capabilities beyond external analyzes and comments are incorporated. Here, the more independent possible Data provided well prepared are available the better. If only «delivered» pure trading signals helps the little.Detailed technical analysis traders take against it from a lot of work. At least for a part of the scene Social Trading is becoming increasingly important. The quality of a social traders network stands or falls as yet with the reach. Especially beginners should — not least in the interests of the broker — expect a detailed induction program with webinars and seminars.
A key criterion in forex broker test the market model. Beginners are in good hands with Market Makers (MM): MM set the minimum deposit at low and high Bonus. Trading is typically free of commission, but harbors potential conflicts of interest: MM go in the opposite position to their customers and can therefore win in principle if they lose. In practice, reputable online forex broker netted only internally the customer positions and secure net positions externally from.
That advanced and professional traders often trade in ECN / STP brokers is primarily due to the lower cost: The spreads are significantly narrower than MM Although STP and ECN brokers charge commissions are the total costs, at least for larger sales lower.. STP brokers conduct their customers’ orders through to a liquidity pool, ECN Broker connect their customers directly to the pool.
Market orientation and pricing in forex broker comparison
The pricing policy of a broker depends essentially on its primary target group. Market Maker require a low minimum deposit and no commissions, but put it spreads very far. ECN Broker set minimum deposit and minimum position size to quite high, earn no money with additional spreads. As a general rule: High new customer bonuses are amortized from the perspective of the broker elsewhere.
Due to the development of the market traders should in Forex Broker Comparison also assess the market orientation of the Brokers and possibly those who consider the German market as «compulsory exercise» turn their backs. Are customers from Germany explicitly valued them is at least one German-language customer service and a properly translated into German homepage.