Choosing/Selecting a Broker

With hundreds of brokers to select from traders may not know which broker to choose. One may not know which factors and aspects to look for when choosing their broker, this guide will explain to traders more about brokers and what factors and aspects traders should consider before deciding which broker to open a trading account with.

In there's no central market where trade positions are settled, instead trade positions are carried out in an Over The Counter OTC market. Because there is no central xauusd market place trades will be settled in the online interbank market. This online inter-bank market is composed of a network of big banks. For traders to gain access to this market they must trade through a online broker. The broker will place trade positions in interbank market on behalf of the traders.

Traders can't trade directly on the inter-bank market because they do not have the capital to set-up the technology for doing this neither do they have the minimum required capital that is needed by the big banks to allow them to trade directly on this market. For this reason/explanation retail xauusd brokers exist so as to connect retail investors to the online interbank market. Retail brokers will allow traders who do not have a lot of capital to trade in the market.

Xauusd brokers also provide xauusd leverage so as to help traders to open trades with borrowed funds. Because lots are traded in units and most retail traders can not afford this, the brokers provide this leverage so that as traders with little capital to invest also can be able to trade the markets on borrowed money. These borrowed funds/capital are borrowed from your broker, a broker providing xauusd leverage of 100:1 means that traders can borrow up to 100 times their trading capital, therefore a trader with only $1,000 can borrow up to 100 times which means $1,000 multiplied by 100 is $100,000 dollars, this $100,000 will be the capital that is available to the trader after using leverage & henceforth the retail trader who only has $1,000 dollars capital can now trade standard lots.

The Checklist of Factors When Choosing Your Online Broker

The following factors should be used to determine which broker you'll select to trade with.

Regulation - The first thing to consider is broker regulation license. You should only open an account with a broker that is regulated. In the most reliable and most transparent brokers are the ones which are regulated. This is why this is the first thing that most traders will look for before they even start considering whether if to open a account with a particular broker or not.

Withdraw Policy - Try to find out the withdraw policy of a broker before signing up an account with them. Best withdraw policy is one where you as a Gold trader can withdraw your money any time you as a trader want without any questions asked. This policy should also provide that the withdraw should be instant if you are using a credit card to withdraw or should take 1 business day if you withdraw using bank wire technique

Execution Policy - the best execution policy is a no requotes execution policy where orders are executed within one second or less. This means that as a trader you as a gold trader can open and close-out trade positions quickly & your trades should be re-quoted. A requote means that you'll have to place a position again once the trade transaction transaction is re-quoted. A requote will happen if the execution of your broker isn't fast enough which means the quote will change before you have completed putting your trade and thence you have to make another trade.

XAUUSD - traders should choose and select a broker that provides a wide range of xauusd that they can choose & select to trade. In addition to xauusd traders may choose to select broker that offer other financial trading instruments for trading such as commodities, CFDs, Futures, Metals like silver & gold trading and indices.

Platform - choose a broker that uses MT4 software. Almost every online broker uses this software. As a trader make sure that the platform of the broker you choose allows automated xauusd especially for those traders that trade with automated robots.

A trader may also use other factors to decide what broker to open an account with based on the preference. On this site traders also can find a list of the top a hundred online brokers on the broker ranking section of this site and traders might use this list to find the broker of their choice.

Study More Topics and Tutorials and Lessons:

Trade Forex Trading

Choosing/Selecting a Broker

The Checklist of Factors When Choosing Your Online Broker