Some people pick a broker that they trade with and they end up marrying that broker; they only deal with that one broker. Unlike cheating on your wife (or husband) you SHOULD have a "mistress" broker. Each broker has their own unique strengths and weaknesses, and by having accounts with two or three different brokers (let's not go crazy here having too many accounts) then you can take advantage of each broker's specific benefits. One may still be your primary broker, but use the other for special purposes.
For example, one broker may have a better pip spread on a particular currency pair than another broker. If one broker offers 5 pips on some currency pair whereas another broker offers 3 pips for the same pair then which broker would you use to trade that pair? The answer is obviously the lower spread option.
There are many factors to compare brokers against, but I won't discuss all of them here. From your research and interaction with various brokers you'll figure out which is best to use for specific purposes. There are just two main considerations that I want to touch upon in this section. One of those points has already been mention, the pip spreads, but the second is the more important tip that I want to share with you.
The information I'm about to share is valid at the time of this writing, so make
sure to confirm this info yourself before you act on it.
Most brokers currently do not absolutely guarantee their stop orders. Looking at what they say on their websites is misleading; you need to read the "fine print", which states that they will honor stops EXCEPT during times of extreme volatility. This means that if a particularly huge fundamental announcement is released or should there be some bizarre world news (like a serious terrorist event) then they might not honor your stop loss order if the market gaps beyond that price.
If you are doing large trades (i.e. trading on large scales like daily charts with huge stops of say 200 pips) then a market gap caused by "extreme volatility" might not affect you significantly. However if you are making highly leveraged trades (as you would be doing using scalping or surfing techniques) then even a small 50 pip gap beyond your stop can be a significant loss.
Rarely will unexpected world news adversely affect your trading (sometimes you might get lucky by being on the right side of the trade to take advantage of it), but you might from time to time experience its effects (I lost money due to the London bombings, not because of a missed stop, but due to unexpected market behavior).
World news is something you can't anticipate, so just forget about it. What you can control is whether you are actively trading through significant Fundamental Announcements. If you are position trading, as is taught in this eBook, then you will inevitably sail through some stormy FAs. Most FAs will not capsize your trade (it may rock the boat), but there are occasional big FAs that can be dangerous.
Here is an important rule: NEVER LEAVE TRADES OPEN THROUGH THE "NON-FARM PAYROLL" ANNOUNCEMENT ON THE FIRST FRIDAY OF EACH MONTH (08:30 EST)
There is one broker that I'm aware of that does (currently @ time of writting) honor your stop orders under ALL market conditions, including times of "extreme volatility". That broker is ACM (click on the link).
If you are "Sailing", using the techniques of this eBook, then you'll often have trades in the market for long periods of times (days, weeks, sometimes even months). It is reassuring to know that while your trades will sail through the stormy seas of Fundamental Announcements, weekends, and unforeseen uncertainties that your trade will remain relatively safe. This is not to say that you shouldn't use the other brokers for long-term trades, but in some circumstances ACM will be the preferred broker.
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