My rules for picking brokers:
1. I prefer spreadbetting because it has easier to use platforms and is tax free. Otherwise trading FX in lots is fine, but more complicated.
2. I prefer brokers that I personally know the CEO, and work with.
3. I prefer brokers which are international and large.
4. Even then, ones I’ve used like MG Global, Bear Stearns (used by my hedge fund) still go under!
5. I advise clients not to have more than £100k in any one broker account
My favourites are:
- Please remember the Pips Predator is for FX not I have a separate indicator for the index which I will launch soon. FX and indices are different in their price action is the reason for this.
- FXCM feeds are the market live rates – they are sourced from the various banks the PipsPredator.com mentoring course explains this during its 12 weeks of training. We are only using FXCM’s MT4 demo for live rates, not for trading
- Brokers who do not trade FX, but CFDs or spreadbets, trade their ‘own book’ this means they you are trading with them and they set the price based on the underlying market – it’s a bit like buying FX at the airport. Now is this a bad thing? Not necessarily, because if you buy and sell when the indicator tells you, it should not matter which broker you use, UNLESS, the broker moves its price not in line with the market, but to suit their own book of trades. Some brokers have a reputation for this.
- I trade through these brokers:
Do I Recommend Guaranteed Stop Losses
If you are spreadbetting, then of course some brokers offer guaranteed stop losses. Are they worth it. The advantage is you know where you will get out, even if there is a market crash. The reason people use them is that with regular stop losses, even if they are triggered by the price moving through them, the order goes in the market and you may be ‘filled’ at a worse price than the trigger price you set.
Also, if the market ‘gaps’ through your price, then you could be filled at a very much worse price, as happened to people in 2015 when the Swiss Central Bank announced a surprise interest rate shift.
However, since FX is liquid, trades 24/6, you should not have too many such gaps, especially in more popular currencies. The main problem with guaranteed stops is that they cost a little more. We don’t use them. You can always try them out – like all insurance policies, you take the risk of hindsight proving you wrong!