Trading Basics

Choosing a Broker: What to Look For

Understand what a broker does and the key criteria for selecting one that fits your trading style.

Key rules

  1. Only use regulated brokers (FINRA, FCA, ASIC, CySEC)
  2. Compare spreads and commissions across brokers
  3. Prioritise execution quality over promotional offers
  4. Test the platform with a demo account before depositing
  5. Check withdrawal policies and processing times

A broker is the intermediary between you and the market. They execute your orders, hold your funds, and provide the trading platform. Key criteria include regulation, spreads/commissions, platform quality, execution speed, and customer support.

For stocks, look for FINRA/SEC regulation. For forex/CFDs, FCA, ASIC, or CySEC regulation is standard. Never use an unregulated broker — your capital has no protection.

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