Novice Needs New Broker

[Darquan 10]

Hi, i'm new here and not long ago I started trading with Synthesis bank (a small Swiss brokerage) which was fine till Saxobank (crooks from what i've read) took them over. Now i'm trying to find a good broker and have been trauling the internet for 2 days looking at many reviews most of which contradict each other, are many years old or untrustworthy and there are only a couple of reviews on this site so I'd really appreciate it if someone could direct me to a suitable broker.

 

I started trading stocks but after many hours of reading this site it seems that options have much more potential due to the leverage possibilities. I would like to be able to trade both (ideally have access to currencies too). I live in UK with £2000 funds to transfer and have been studying swing trading (as i'm novice) but that may change down the road.

 

Any advice on which broker or the best way to get off the ground with trading is greatly appreciated.

[MidKnight 12]

Hi Darquan,

 

What markets are you interested in? Keep in mind there are few ideal brokers, it is usually some sort of compromise between commissions, market access, account flexibility and features, software, and customer service.

 

I use Interactive Brokers because of their wide variety of available markets. Their only real flaw in my opinion is the customer service, which can be crucial in some situations.

 

With kind regards,

MK

[Darquan 10]

Thanks for responding. I'm interrested in UK and USA markets. I've read horror stories for just about every broker, I realise it's a trade off and am not certain which to prioritise as i'm a novice. It seems to me commissions are always important for profit with limited funds and experience (making small trades). From what i've read customer service can be cruicial if your unlucky but as I understand it even if they have great customer service it's doubtful you'll get any money back when they make a mistake.

 

I did look at IB but they require $10000 deposit and i have approx $4200 to start with, otherwise i'd go with them as they seem to be the most rated broker and mainly favourable reviews despite their customer service. Is there another broker like IB without the $10k restriction as I like the low commissions and variety available. I'm currently looking at 'think or swim' the canadian brokers that were recommended by someone on this site but mixed reviews elsewhere as usual. They mainly deal with options but i've heard these are more difficult to trade than stocks, is it recommended for a novice to launch into trading options or stick with stocks for a year or more?

 

Thanks for the help

[BlowFish 10]

I am not sure why you want high leverage?

 

I am loath to mention them (as they don't have a great reputation) but you might want to consider spread betting. They will take money from you as you enter and exit but if you are holding for a decent amount of time it might be a possibility. Because of the small bet size most allow it would allow you some flexibility in position sizing, scaling in and out, money management in general.

 

I should point out that having tried spread betting a couple of times it does not suit me but I like to try and fitness entries and exits. If you where swing trading or intraday 'position' trading they might suffice.

[atto 20]

Be wary of simply jumping into options; while the leverage and risk safety net look attractive, you're paying a premium on it. What kind of trader are you (day, swing, longer)? I urge you to use as little margin as possible (less leverage, if any) when you're still new, because that will only steepen the learning curve.

[Darquan 10]

Thanks for the advice guys. I considered options because I read posts by a numbers of veterans on this site who prefered them to stocks for the leverage and I was thinking if this is the case then I would benefit most in the long term by learning the skills in trading these instead of stocks as eventually i'd be looking for more leverage for more purchase power. However if the premiums cost alot more than I guess I should look to the short term and stick to stocks as I will be keeping things small for the first year, untill i've built up my confidence.

 

I'm not ready to do any intraday trading so in terms of a broker this isn't important for me and it sounds like i'd learn most from non-margined stock trading (possibly CFD's then if theres a trustworthy broker out there that does them) and am really looking for a broker that offers good price and serivces for a novice.

 

I havn't looked at spread betting at all and prefer successful trades to last days or a few weeks at most. I will take a look but from the little i've read I don't think they're what i'd like to do in the long term and I am keen to focus on one area of the market to focus my attention.

[bullrider 10]

I'm not new to trading, but I'm considering getting into currency

trading which I've never done. But, my broker doesn't offer anything

but stocks and options.

Anyone have any good currency brokers to recommend ?

 

Thanks,