The number of markets on offer is also an important consideration when choosing a broker. While most brokers offer all major asset-classes nowadays, including stocks, bonds, indices, commodities and currencies, it’s the number of instruments in each asset-class that sets apart a great broker from an average one.
If you trade stocks, make sure that all your favourite stocks are offered by the broker. Stocks from international market centres are also a great way to diversify your trades and reduce your overall risk exposure to any single market. The major stock indices, such as DJ30, S&P 500, FTSE 100, DAX 30 and Nikkei should also be on offer.
Forex traders should pay special attention to the number of exotic currencies. All Forex brokers offer the major currencies, but only a few list exotics such as the Russian ruble, Turkish lira, Argentina and Mexican peso or Czech krone. These currencies are extremely volatile, which is a prerequisite for Forex traders who essentially live on volatility. If a currency pair doesn’t move, there is simply no way to make a notable profit.
Commodities like gold, silver or Brent crude are also essential to diversify your portfolio and should be offered by your broker.