How to choose your broker

People often ask me how they can choose their broker. As a first thing, I would suggest that you look at how serious the broker is and how stable they look in economic terms. Obviously, if a broker goes bankruptcy, it is an unpleasant situation. I passed through it, and it is something that we all try to avoid as much as possible.

So, try to investigate the brokerage you are using. Try to find as many pieces of information as you can and try to understand how serious and “in the money” they are, as this is very important. Do not think about bonuses or other things they are giving you, because they are not that important. If they give you something, there must a reason why they do so. Also remember that you do not have to make money with their money, but that you have to make money with your own money. Do not choose a broker simply because the entry bonus it gives you is higher than the ones other brokers offer. Look at how serious they are, because this is essential.

Second, if you are at a different level and you are structured in a certain way, you obviously intend to trade certain markets. Verify what markets are offered through the broker. In fact, not all brokers trade everywhere.

So, if you want to trade a specific market, because you are an expert in it, look for a broker that offers that market. This is pretty much obvious, but it is better to doublecheck every time. Pay attention to technology as well and verify that the technology the broker can offer you is a good match with what you need and are looking for. If you are an automated trader or a systematic trader who works 24/7, and you want something that goes on running with no interruption, make sure that there are no interruptions on the servers. For example, if you connect a platform to Interactive Brokers, which is one of the most famous brokers in terms of automated trading services, if you connect to its TWS, you must know that there is a planned disconnection every day.

There are workarounds to avoid it, but you have to be aware of that. So, verify if you can cope with it or need to find another solution. Stability, technology and, last, commissions. Nobody likes trading costs, but this is the least important thing, because we have to verify that we are getting a good product first of all. So, we can accept higher commissions, if what we get is better than something else. First, look for something you think can work in the long run and give you the technology you need. Then, discuss commissions. Do not look for money; look for making money — which is what you are going to do.