Resolved Question
What are the advantages of using big or small brokers?
about 1 year ago
Best Answer - Chosen by Voters
See it like banks. Which one you prefer to deposit your money, small bank in Caribean islands (which offer you big interest and personal service due to not many customers they have) or simply well known bank at your town who has well known reputation? I believe the analogy is the same. Big brokers also means higher liquidity which in the end can offer you better spread. There are also lot of small brokers offer you very tight spread but it doesn't come from high liquidity but simply just a niche for new traders to deposit their money and hoping a trading loss in the future. Remember three things before you choose: Big, well regulated, and good track record. Rest, do your own analysis :)
about 1 year ago
Answers (1)
Maybe big brokers are more reliable since they're regulated and probably have better reputations. Small brokers are a bit riskier since they could be bucket shops or could simply be running scams. Aside from that, bigger brokers could offer better services (customer support, software) since they have larger capital. You should check out the reviews on these brokers before opening an account with them.
about 1 year ago
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