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  1. #1
    Rookie Member

    Choosing the Right Broker !!!

    how to choose best broker ?

  2. #2
    Rookie Member
    Which points should take in mind while choosing broker ?

  3. #3
    Master Member Bogdan G's Avatar
    Quote Originally Posted by optionsagent View Post
    Which points should take in mind while choosing broker ?
    Hi and nice to have you here! First of all you should read the broker reviews here then check out our recommended brokers section and also you might want to read some reviews on broker's educational material. One more important thing: do you know how to trade? And I am not talking about actually placing a trade, but how to decide if you should choose Call or Put. If the answer is "yes", then you will find all the needed information i the link I posted.
    Some important things for me to check before investing with a broker are:
    Are they regulated? If yes, then by whom?
    What is the minimum withdrawal? very important because some brokers have something like $200 min withdrawal limit and that's stupid.
    What is the minimum trade i can place? I dont know how much money you have and maybe this is not a problem for you
    If they give me a bonus for depositing, what is the amount i must trade before i am allowed to withdraw?
    There might be some other important points that i left out. If you have other questions, please feel free to ask them.

    All the best
    Bogdan G

  4. #4
    Administrator Martin Kay's Avatar
    You can find a couple of articles on this subject here - and on

    yet, there's so much more to add on this subject. the most important thing is - make sure to ask your broker all of your questions. don't be shy, ask more and more until you get proper satisfying answers.

  5. #5
    Senior Member Grae's Avatar
    Hi Optionsagent,

    Thats a great question. Some additional reasons why you should choose a broker are:

    1. Education/Training
    good broker often offer you a Demo platform or other practicing methods, with free test currency and educational material. Then you can easily trade risk free.

    2. fees
    The best trading platforms have the least fees for every transaction. High commissions are punitive and mean you have to work harder to earn well.

    3. Technical tips
    You obviously are working with the platform because you assume they know what they are doing. This should be clear from the tips they offer you.

    4. Deposit and withdrawal of funds.
    Not only should it be easy for you to deposit funds, but also to withdraw. The best times depositing and reflection on your account is within a day and 72 hours for withdrawal.

    5. Finally, ease of use.
    You want a platform that is easy to use especially when you are following many trading instruments at the same time.

    Hope this helps.

    Kind regards,

  6. #6
    Specialist Member RCox's Avatar
    Quote Originally Posted by optionsagent View Post
    Which points should take in mind while choosing broker ?
    Since i try not to trade during volatile moments (when price changes become unpredictable) platform efficiency is generally not as much of a concern as are average trading costs. I am of the mindset that trading costs to matter (even if this is only negligible). The second thing I usually look for is charting software that is easy to use and attractively designed. Since I have to spend a lot of time staring at charts, this does become important and poor software can negatively impact trades. In this day and age, there is really no excuse for a poor charting package.

    The third thing I look at is the brokers attention to news updates, as this can also greatly impact short term trades. Brokers with no market updates should be avoided, as there is really no excuse for something like that, either, at this stage on the online trading game.

  7. #7
    Legendry Member Michael Hodges's Avatar
    I think you all have some great points. After reading all of your comments I have two things to add. 1) check out more than one broker. There are many, more than one are good. Once you pick a couple of promising sites log on to all of them and do some exploring, find out which one fits you best. 2) check and make sure that the platform offers options that suit your trading. Binary brokers dont offer the same vehicles as each other and they dont off all the vehicles available in regular trading. Also, brokers don't always off the same expirations. I recently contemplated a switch to an account that I liked better only to find out that they only offered options with expirations of 1-4 hours....not good for someone trading weekly or monthly positions like me.

  8. #8
    M.J is offline
    Veteran Member M.J's Avatar
    One of very common questions and pretty much explained already by users.

    The first thing that u need to check is "Reviews". Dun go to review websites coz most of them r biased. Check popular forums and see what people say.
    After "Review research", shortlist 2 to 3 brokers and then compare them. You can compare their commissions, deposit/withdrawal methods and fees, return and min deposit (if u r short on capital) etc.

  9. #9
    Rookie Member
    Choosing the right broker is important for many reason but the most important factor that should be kept in mind is that how the broker executes your fills. The fills may vary for larger orders and sometimes they misses on orders especially if you are opening with Selling of Option

  10. #10
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Zee579 View Post
    they misses on orders especially if you are opening with Selling of Option
    Buy to Open - Long on an option contract (either a Call or Put); it will be closed by a Sell to Close order. It does NOT matter if the contract is a Call or Put. Yes, you can Sell to Close a Put option previously purchased
    Sell to Open - Short on an option contract (either a Call or Put): it will be closed by a Buy to Close order. Same as above applies

    What you are saying sounds like Vanilla trading to me and I don't think that the Op cares about that kind of options or that he is looking for a Vanilla broker
    Last edited by Bogdan G; 11-14-2012 at 08:15 AM.

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