Which broker ?

Innumerable brokers are offering their services on the internet. However not all of them are appropriate to trade with. Listed below are the important considerations you need to check when choosing your broker.


> Regulated broker

Always choose a broker that is regulated. A strong regulation framework not only ensures - to a certain degree - that the broker is sufficiently solid financially to carry out its business (generally assessed as a net capital requirement) but also grants you the possibility of legal pursuits shall there be any contention.


> A local jurisdiction

Preferably select a broker that is regulated by your country of residence. Your rights will be better protected and you will know where to turn to shall there be any contention.


> A well-known financial authority

Should you be living in a country where no such financial regulation exists, by default choose a broker that is regulated by a well-known financial authority i.e. a financial authority of a developed country (such as the AMF for France, FCA for the U-K, ASIC for Australia, BaFin for Germany, etc).


> Investor compensation scheme

Notable financial authorities - such as those cited above - always offer an investor compensation scheme. As a costumer of a broker regulated by such financial authorities you will receive financial compensation (ranging from 20,000 USD to 40,000 USD depending on which authority) should the broker become insolvent. To benefit from the investor compensation scheme you must be categorised as an individual retail costumer i.e. trading only for yourself and not on behalf of any corporation. So make sure that you are trading with a broker with whom you are covered by the investor compensation scheme.


> Segregated account

In the case of a segregated account your money is kept separately from the broker's fund. It prevents the broker from using your money in the carrying out of its operations. In some countries, segregated accounts also give you a better protection shall the broker have to declare for bankruptcy i.e. your money being held on a segregated account cannot be used to pay the broker's debts.


> Negative balance protection

Negative balance protection means that you as a trader will never loose more than the amount of money you have put in your trading account in the first place. This is a great safety feature particularly when Forex trading online generally involves high leverage - the use of leverage can cause your losses to exceed your account equity. The negative balance protection is not in itself very useful with regard to everyday trading - specifically when using Captain Algorithm because your losses are automatically taken into consideration. However it provides you with a good protection against cases of force majeure warrantying that no matter what happens you will not be liable for losses that exceed the equity you have invested in the first place.


> Must allow EA and hedging

The broker you choose must allow the use of EA on MT4 trading terminal and accept hedging. Captain Algorithm while conducting its trading strategy will naturally hedge a lot i.e. opening positions in opposite direction on a same symbol.


> Online reviews

Last but not least, take the time to read reviews on notable Forex review websites to learn more about the broker you want to choose. While reading reviews be attentive to the main aspects that make the difference between a well-advertised broker and a worthy broker such as : the constant respect of trading conditions, withdrawing conditions,  overall notoriety among other traders, additional fees etc. More generally search for any issue the broker may have had. If you have not found any issue then the broker is suitable for you to start trading and making some profits.


When in doubt with any of the points cited above the best solution is to address directly a letter to your broker asking for clarifications - remember that an email can constitute a proof of good faith on your part, shall your broker infringe on the terms and conditions of service.