Your Choice of Broker Determines Your Success

May 15, 2013  |  Profitable Trading

Most traders don’t realize this, but your choice of broker is a major factor in your trading success. Don’t believe me? Let me explain.

There are 2 types of brokers, the ones who truly understand what it’s all about, giving you fast execution and tight spreads, and most important of all: no problems. Then there’s the other type of broker who are constantly trying to screw you over by giving you insane spreads and constant requotes, and generally giving you a really crappy experience.

If your current broker is playing games with you and giving you requotes, find an ECN broker, they don’t have requotes. Look at the spreads, there’s a HUGE difference in spreads between brokers. If the spread is too wide, it will hurt your profits both short term and long term. There’s absolutely no reason for a broker to have wide spreads. Why? They are all connected to the same pool of banks, so they are all getting pretty much the same raw spreads. Think about it!