Trade Gold Trading

Choosing a Broker

With hundreds of brokers to choose from traders might not know which broker to choose. A trader might not know which factors & aspects to look for when selecting their broker, this tutorial will illustrate to traders more about brokers & what factors traders should consider before deciding which broker to open an account with.

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

Traders are unable to trade directly on the inter-bank market due to a lack of capital necessary to establish the required technology for such trading, nor do they possess the minimum capital mandated by major banks to facilitate direct market trading. Consequently, retail brokers exist to bridge the gap between retail traders and the online inter-bank market. These brokers enable traders with limited capital to participate in market trading.

Brokers offer leverage in trading. This helps traders start positions with borrowed money. Lots trade in big units. Most small traders lack the cash for them. Brokers step in with leverage for gold trades. It lets people with low funds join the market using loans. The broker supplies those loans. A 100:1 leverage setup means you borrow 100 times your own cash. A trader with $1,000 gets up to $100,000. That full amount becomes available for trades. Now a trader starting with just $1,000 can handle standard lots.

What To Consider When Choosing Your Trading Broker

The subsequent criteria should be utilized to evaluate and select your preferred broker for trading.

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

Withdraw Policy. Check a broker's withdrawal rules before you open an account. The best policy lets you pull out your money anytime. No questions asked. Use a credit or debit card for instant withdrawals. Bank wire takes one business day.

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

Gold Quotes - Pick an online broker with lots of trade options. They let you choose from many tools. Beyond gold, look for ones with commodities, CFDs, futures, and metals like silver. Stock indices count too.

Platform - pick a broker that uses MetaTrader 4 software, since almost every broker uses this platform. As a trader, be sure that the online broker's platform lets you trade gold automatically, particularly if you use automated robots to trade.

A trader may evaluate various elements and criteria when deciding which broker to select for opening an account based on their preferences. On this website, traders can discover a compilation of the top 100 brokers for gold listed in the broker rankings section, which they can refer to for choosing their preferred broker.

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