So How Do You Know Which Broker To Choose?

That’s a very fair question. However, the answer is that it’s entirely up to you! It is going to depend on how you wish to trade. On the one hand you can have wider spreads, but no commissions payable. On the other hand, you can have tighter spreads, but also have to pay a commission, albeit very small.

The wider spreads are usually preferable for traders who are in it for the longer term. However, the tighter spreads are preferable to day traders because you can take a small profit and don’t need to worry about the market having to get over transaction costs.

Despite what you may think, the majority of brokers are not in the business to con you. They want you to keep trading with them, and you are not going to do that if they rip you off. As far as a broker is concerned, his ideal client is one who makes little profit and little loss. That way, the client keeps coming back for more, and the broker keeps earning. If you think about it, that makes total sense from the broker’s point of view.