Choosing a broker can be very tricky. I'm gonna explain what a the criteria that should be considered before choosing a broker.
The first and the most important is the spread.
There's 3 type of spread; Fixed, ECN, and Variable.
Fixed Spread usually have 3 spread on the pairs. So let say you buy EURUSD at 1.300(says the spread is 3), immediately you will lose 3 pips the moment
you enter the trade. You need to wait the price to go up by 3 Pips just to breakeven. You might think this is not a big deal right? But imagine if you
do 100*1.00Lot*3spread, you'll lose about $300 just because of the spread!.
Variable Spread is a dynamic spread. It goes lower during peak hour and wider during non-peak hour. At an average of 1 pips or lower, it is easier to
breakeven (just 1 pips away). So lets say you make the same transaction at 1.300(buy). You just need the price to goes up by 1 pips to make it breakeven.
In this case, you only lose $100 (100*1.00Lot*1spread).
ECN spread is the the tightest spread there is because it's basically are the rates given by the bank. It is transparent, very fast execution and no requotes.
The only downside is that ECN charge a considerably high amount of commission from the trades.
FIXED (Spread=3) Variable (says Spread=1)
BUY 1.300 Buy 1.300
Price goes up by 4 pips Price goes up by 4 pips
Close deal = 1.301 (profit +1pips) Close deal= 1.303 (profit +3pips)
Slippage/requote and trade execution. This is an equally important for trader. We don't want to get slippage during news/peak hours. Basically slippage is just the difference of prices that you get from the price that you requested.
Swap.Swap is the interest that you earn/pay when you hold a position more than 24 hours and it is counted daily. If you are a swing trader(traders that hold position for more than 2/3 weeks it is a great idea to apply for a swap free account to maximise your profit.
Withdrawal fees is another thing to be consider. The lower the better. Some broker have a minimum withdrawal amount and withdrawal fees. Try to apply for broker that have lowest charges for both.
Personally, i like EXNESS. It offers a variable spread, swap free(it's based on the country that you live), and have various ways of withdrawal and no withdrawal fees.
