if you are day trading and primarily if
you are scalping having the right broker
with the right spreads is gonna be the
difference between you being in profit
constantly and you constantly losing
money so in this video i'm going to talk
about brokers and which ones are best
for you
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis so when
you see screenshots of everybody's mt4
and their trades and their lot sizes a
lot of people get confused why some
people can trade one lot of us 30 and
make less money than somebody trading a
.01 of us 30. so in this video i'm going
to do my best to explain all of those
differences and which broker is actually
going to be right for you so in order to
really understand it i'm gonna jump into
the charts really quick and show you
what spreads are and how they work okay
so on trading view i do all of my
analysis then i open up my mobile mt4
app and i place my trade on my phone so
whether you're going long or short
buying or selling the bid or the ask
price is gonna be here on the right side
of the screen and you can see that
there's a difference between what the
actual price is here in the middle what
the ask price is up above and what the
bid price is down below now pausing the
screen for a second you can see on
australian dollar us dollar the current
price is .7196
the ask price is 0.71975
okay so i need to do an after edit while
editing this if you are selling
you are selling at the bid price and
when you close your trade you are
closing it at the ask price vice versa
when you buy at the ask price you are
selling it back at the bid price so the
spread
is
one nine seven five two seven one nine
six two
that is a one point three spread
some brokers really really really suck
they have ridiculous spreads of like 5
or 10 pips meaning that this actual
price right here in the middle
969 the difference between the bid and
the ask price and that current price is
10 pips so the price would have to move
10 pips in order for you to be at zero
dollars on your trade which is
ridiculous because a 10 pip move is
massive so there's a general rule of
thumb when looking at forex brokers you
can either get low spreads and high
commissions or no commissions and high
spreads so every time you place a trade
your broker would take a commission
that's a set number for each lot size so
not only do you have to get your trade
through the spread as well as being able
to cover the commission in order to be
in profit you also need to worry about
finding the right broker that offers
those low spreads and low commissions
that's going to be the best recipe for
success a lot of brokers that offer no
commission trading are those ones that
just stick it to you with a 10 pip
spread either way the broker will always
make their money regardless of who's
trading and what platform they have a
structure to make money period that's
how they make money so the thing that
you want to look for is low spreads and
low commissions i never usually suggest
a broker that has zero commissions
because that zero commission always
trickles down into some other fees
whether it's through withdrawals or
through higher spreads the second thing
that i want to discuss in this video is
lot sizes so a lot of people that like
to trade us 30 you will see a variety of
different screenshots from people's mt4s
and i've seen people that trade one lot
on us 30 and when the price moves 50
points up or down they only profited 50
the reason for this
is contract sizes cs contract sizes you
can either have a big contract size or a
small contract size sometimes an even
smaller contract size i'm not going to
go deep into it if you want to google
contract sizes you're more than welcome
to but for me when i trade us 30 my
contract size is 100 so if the price
moved 50 points up or down and i'm
trading a 0.01
that means that i got 50 dollars in
profit but somebody that has a broker
with smaller contract sizes on us 30 is
gonna make substantially less money on a
.01 they would make five dollars or they
would make 50 cents pretty much unless
the broker has it on their website the
only way to determine what the contract
size is gonna be on indices or larger
things like gold bitcoin ethereum
anything in the thousands of dollars is
going to run in contract sizes but yeah
pretty much the only way to figure it
out is to open up a demo account on that
broker and then open up the mt4 app and
you can add us 30 onto your watch list
click it and then click the button that
says details in the details it will show
you the contract sizes for that indices
getting a demo account is also going to
show you what their spreads are that's
also one of the primary reasons i ask
people to demo because they need to demo
on the broker that they're actually
going to trade with to see what the
spreads are what the contract sizes are
if their strategy is even going to work
and then over a month of testing and
testing and testing and testing day in
and day out you have a golden strategy
that you know is profitable and
consistent and has a high win rate then
you can actually put in real money now
with brokers they have regulated and
unregulated brokers
most people are afraid of unregulated
brokers because of the word unregulated
that simply means that they're not
regulated by
a governing body like the united states
of america the sec or whatever else
across the globe highly regulated
brokers like brokers in the united
states are going to offer lower leverage
because of all the regulations and
restrictions so most people in america
can only have one to 30 leverage whereas
if you go unregulated or offshore broker
you can get one to 500 one to 200 some
even one to one thousand which literally
do not go leverage over one to five
hundred please i prefer a one to five
hundred leverage it gives me nice buying
power without being too overzealous when
i first started looking for brokers i
did a lot of research i watched 800
youtube videos and i finally ended up on
blueberry markets which is a broker
that's regulated based out of australia
i was able to get low spreads relatively
low commissions as well as having one to
500 leverage
but recently with the changes in
australia's regulatory system
uh you're not allowed to actually have
that high of leverage as well
as brokers in australia weren't allowed
to facilitate people that didn't live in
australia so i had to look for a new
broker now through the course of trading
with that broker i actually found
specific things that i wanted my broker
to do i wanted low spreads low
commissions but i also wanted the
ability to withdraw with cryptocurrency
so i knew that i wanted to go
unregulated i just needed to find a good
unregulated broker so i found one i
deposited bitcoin i transferred it into
usd i have a usd account on there i have
one to 500 leverage i have really really
low spreads sometimes less than a pip on
buying and selling and i just trade
consistently with them and then when i
make profits i move it to bitcoin and i
let it sit there because bitcoin you
know statistically always goes up so
every time i make profits i just stick
it in the bitcoin wallet and that thing
grows and then at the end of the month
when i'm ready to pull out whatever
income i need to exist or survive i sell
that bitcoin back to you as dollars and
it goes straight into my bank and i can
just have a normal life while the rest
of my assets instead of just sitting at
u.s dollars they continue to grow so the
broker that i use is osprey it's linked
down below if you want to check them out
but i also have a few other suggestions
because osprey does not cater to
everyone across the world i have
numerous friends that all trade
professionally and i've gotten their
input on different brokers that they've
used because i don't want to give you a
suggestion of a broker that i haven't
personally used or i know somebody
that's personally used them so i've also
got hugo way on there i've got icy
markets another one called cote 4x kot4
but i think they are like coda because
it's like a
logo thing and the last one's gonna be
roboforex so depending on what country
you live in whether it's india or the uk
every single one of these brokers is
gonna cover every single like
jurisdiction on the planet so if your
country isn't allowed with a specific
broker i got a whole list of things down
there for you guys to choose from yes
they are all affiliate links no they are
not all my affiliate links there are
links from these people that told me
that yes this broker is the one that i
use they have great customer service
they've got great spreads they've got
great commissions so these are
suggestions by my friends that are
professional traders so basically what
i'm getting at is the next time you see
somebody's screenshots of mt4 and
they're trading one lot on us 30 but you
can't and you're wondering why they're
making less money or more money there's
a difference between different brokers
so what i suggest you do is really put
in the time and research in your area
figure out which brokers are good demo
on every single one of them and it's
going to make you a more profitable
trader because if you're scalping 10
pips on australian dollar us dollar but
your spread is 5 pips you need your
trade to go up 15 pips in order to hit
your take profit and that actually
didn't even cover commissions so yeah
that's all i wanted to tell you about
brokers uh if you're still confused
about pips and lot sizes you can check
out this video right here that i did
specifically on that topic and if you
like the way that i teach and you
enjoyed this video and you got some
value out of it consider subscribing to
the channel by clicking this button
right here thanks so much for watching
and we'll see you in the next video