Alright. Now that you have a basic understanding of the difference between DD and NDD brokers, let’s put one of each in a room and let them duke it out. There is bound to be a winner sooner or later, right? Well, as we’ve stated before, depending on your trading style you may find you will need the services of more than one different type of broker.
But if you had to choose between them, which would you pick? Again, not an easy one to answer. So let’s see if we can peel back some more details that may be able to assist in directing you down the path to one or the other.
Your Comfort Zone
Yup, you had to see this coming sooner or later. The whole she-bang basically comes down to what kind of arrangement you prefer. The method or schedule or operation that fits well with where you are today as a trader. Keep in mind that your needs will constantly shift and your goals will also. So, let’s dig a little deeper and see what we find.
The Decision Is Yours
So, do you like trading with tighter spreads and paying a commission to a broker or would you rather use wider spreads without the commission? This will basically determine the type of broker you will use. Again, depending on the trade and your overall trading goals, you may switch back and forth every so often. However, it is typically the rule of thumb for day traders to go with the tighter spread philosophy.
Brokers Are People, Too
We need to put this out there. Your average Forex broker is not a crook. They are not cheaters nor are they going to scam you out of a lot of money. Well, the honest ones won’t. What you need to do when you are in need of a broker is do what you would when looking for a car mechanic or new restaurant to try. You would ask around for recommendations. The same works with Forex brokers. If you ask around you will get a better handle on what is available and what some of the other traders think about the good brokers. There are a lot of good brokers out there but remember, they are also trying to earn a bit of scratch as well, so don’t be too stunned to discover brokers with different commission rates or other fluctuations in how they earn an income. Plus, once you find the right broker or brokers, you’ll want to stick with them as long as possible.
Take Your Time
There is no rush for you to make the decision on which broker to use right away. However, you will want to have that figured out and finalized by the time you get around to taking your demo account live. Regardless, keep your wits about you and pay attention to what others tell you and you should be able to make a wise, and informed, decision.