Las Casas Broker In The Forex

How to choose a good home broker?

There are now many brokerage houses in the world of Forex. The growth of this market has led to proliferation of houses in the retail market intermediaries.

When choosing a broker house, it is essential to consider the following:

1. Regulation: Verify that this regulated by a recognized inspection body. In the U.S., England and Switzerland, the home must be compulsorily registered broker and that creates a level of confidence when choosing a house broker to invest our money. In some tax havens regulators exist but little credibility.

2. Operating platform: this element is important because it is money that is invested and efficient platform is crucial. MetaTrader 4 is one of the most popular, although there are brokerage houses that have their own platform, as is the case in New York CMS, and ACM and Dukascopy Swiss.

3.Hedge: If you operate like hedge, look for a broker in Switzerland and England, as this option (open positions in the same currency but in the opposite direction) is not available in the United States, by express provision of the NFA. In Switzerland, some brokers have this option but not all. Like in the United Kingdom.

4. Leverage: Leverage levels have also been reduced in the U.S., but are similar in most brokerage houses

5. Table Money important aspect. If a house broker acts with his own money table, you must take a risk on each transaction of its customers, which should cover on the market. This creates a clear conflict of interest as the house broker can earn a lot if not cover the risk of a client and it loses money on the transaction. In other words, if a customer opens an operation, in principle, the house broker must earn the spread resulted from the difference between purchase price and the selling price of money invested, if it makes a market coverage of 100% operation of the customer. If such coverage does not enter into a clear position of obvious interest risk and the loss of the customer, as this will then benefit.

In a conflict like this, the broker can hurry home stops, requote prices, no profit run limits, refuse orders, etc, in order to increase their own profits. A house broker as an intermediary acting alone, without money table itself, the spread differential gain, and not have conflicts of interest, seeking to help their clients, while those earning more, generating more transactions and more benefits for the home broker.

If contrary, perverse situations may arise against the investor, brokerage houses that are by nature "Maker Markets", ie market makers, with which may eventually put their own prices to the detriment of customers and for their own benefit . This does not mean that the house with table money brokers own act that way, but the point has been considered many times by the clear conflict of interest exists here and considering the amount of money involved in this market



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