Whether a novice trader or a successful fulltime trader, all of us are interested in placing our trades via a reliable broker. Trading is not an easy business, and certainly no trader needs the complications that arise with a less-than-reliable broker.

Today, one of our fulltime MAX pro traders, Eusebio Nanni, gives us a look at how a professional fulltime trader handles the process of selecting a broker: Finding a good retail broker is not an easy task and this step must certainly not be neglected.

Past history, along with recent events, tells us that the broker we choose to trust with our trading account represents a very real risk.

Because we need to focus primarily on our trading process, with minimal distraction, we need to feel confident about our broker s. Many years ago, when I decided to open my first live trading account, I identified several hundred brokers. From these, I developed an initial short list of approximately brokers.

I selected only those brokers located countries having a long historical experience with trading and regulations USA, Europe, UK, Canada, Switzerland, Australia and New Zealand.

For practical personal reasons, I further narrowed my selections to include only USA, Europe, UK, Canada and Switzerland. Not having a total confidence in the review web sites, because I believe most of the reviews are not really objective, I decided to make my own investigation.

In order to measure how a broker could be considered authentic, willing to help his customers, and possessing a strong sense of service, I decided to establish a list of questions. I considered these questions to be important, and I sent them to all the brokers on my first short list. I planned to use the responses as a measure of the quality of each broker. I was only somewhat surprised to see that less than 10 brokers completely answered my questions. Of course, this made my final short list much easier to establish.

This essential criteria is that of communication. Communication with my brokers must be simple, speedy, and responsive. Over time, and with further experience as a fulltime trader, I have added a few more questions to my original list. Some of these questions may not apply to your trading, and you may want to add other questions of importance to you. Here are the explanations and the questions I currently send to any broker I may be considering for a new account:. My trading partner and myself are individual traders and we want to open individual accounts but also joint accounts with a new broker for our Forex trading.

At the beginning, we intend to open an account with small capital between 10 USD and 25 USD or the equivalent in EUR. Our philosophy is to trade medium and long-term trends in the major crosses. We will not be trading news releases nor very short movements. We do not choose to be over-leveraged. We find that many broker websites to provide adequate information to help us reach an informed decision, so we request your accurate responses to the following questions which we are sending to a short list of potential brokers.

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Accurate and complete answers will be determinant in selecting our future broker. I thank you in advance for your answers to these questions:.

Question 3 At some point in the future, is it possible to also open institutional accounts? What are the conditions for opening institutional accounts? Can we transfer funds from individual accounts to institutional accounts?

Question 4 As we are residents in the Euro zone, is it possible to open an account in Euros? This is one of the most important questions for us. Question 5 If it is possible to open a Euro account, are the trading profits, losses, and swaps immediately converted into Euro when the trades are closed? Question 5 Is it possible to trade micro-lots 0. If yes, for which kind of account standard or mini-account?

Question 6 Is it possible to trade nano-lots 0. Question 10 How can we know the interest swaps paid or received when trades are opened? Is there an updated list on your website? Question 12 What are the different possibilities to fund the accounts wire transfer, credit card, etc.

What are the delays and fees? Question 13 What are the different possibilities to withdraw funds from the accounts wire transfer, credit card, etc. What are the payment delays and fees? Question 14 Does your website provide a customer area where downloadable statement documents are produced for fiscal reporting and declarations in our countries?

Question 16 What is the position or action of the broker if a trade execution is obviously problematic due technical circumstances?

For example, is the trade canceled or adjusted? Question 17 Is it possible to place trade orders by phone in case of connection problems, to open or close trades?

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Question 18 We would like to use MetaTrader MT4 as the trading platform. Does your platform version support EA Expert Advisors? Question 19 What is the maximum trade size we can negotiate with 1 trade without your dealing desk?

Question 20 We would be pleased to receive your last annual report by email or by post-office.

We will be grateful to have answers as precise and detailed as possible. Again, we thank you in advance for your patience and your answers. I hope this can help you in your search for a good broker. Feel free to reply to this email with comments or suggestions to improve this approach to broker selection.

Many thanks, Eusebio, for this detailed description of your broker selection process…it will be helpful to many traders. The MAX trading system. Home The MAX System Testimonials Courses Standard Course MAX Primer Course Lite Course Advanced Course SAM Course Contact Us News Watch List.

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Here are the explanations and the questions I currently send to any broker I may be considering for a new account: I thank you in advance for your answers to these questions: Question 7 What margins are available depending upon the account capital? Question 8 At what level of capital is an automatic margin call initiated? Question 9 Do non-used funds earn interests? If yes, what is the interest rate? Question 11 Is hedging permitted while trading in a single account?

Question 15 Do you provide French-speaking customer support by phone? Question 21 Who are your liquidity providers? Or are you a market maker? Question 22 Are the trading funds segregated? If so, with which bank? Question 23 Are the trading funds protected? If yes, what is the amount of the guaranty? MAX Training Courses Primer Course Lite Course Standard Course Advanced Course MAX SAM Course. The MAX Trading System. Trading on Foreign Exchange, Futures, Stocks and all trading markets carries a high level of risk and may not be suitable for all investors.

You should carefully consider your financial status, trading objectives and risk appetite. You should invest only funds that if lost will not change your lifestyle.