Posted On 13 Aug 2020
How do you decide on which currency trading broker is the best one for you to use? Obviously, the first step is to research and look into what the different companies can offer you. This may seem a simple suggestion, but there are so many potential trading companies to work with that you want to make sure the one you choose is honest, reliable, and will keep both your fees and your losses under control.
One way that this can be done is by being able to control the spread by getting reliable quotes that do not change by the time you are ready to buy.
When you make a request for a quote from the currency trading broker the time it takes between getting that information and buying the currency can make a difference in price that affects your gain and loss ratio. In some companies, you may have a broker who takes advantage of their customer’s inexperience and will offer a quote that is slightly worse than the obvious because they assume that now that they know what you want you will not change your mind, you will instead purchase at the price quoted.
Often this unexpected quote will have you asking more than once for the same information. Or you will buy, never doubting the honesty of your broker, assuming the little difference is harmless, and then you will lose money.
What you want is a system where you need only click once to get the best price. This system is called executable streaming price feed. It benefits those buying currency because it means that you click to buy without having to wait for changing quotes. In the long run, a system like this can save you a lot of money when buying and selling currency.
Some brokers say this does not give the client, potentially you, the opportunity to get the best quote because they take the first offer they see. Others agree that if the numbers are not open to constant change, the trading will be more successful.