Choosing a local broker or an international broker for trading

Choosing a Broker
T
Teguh
18 Dec 2020, 14:11 451 Views
Is it better to use a foreign or local broker, min?
And why is it that there was an offer from a local broker the other day, but the initial investment had to be 100 million, and it wasn't clear what comes after that. It's so different, with a foreign broker you can start trading with just $10, why isn't it the same with a local broker? Even though the trading is the same. Please explain, thanks.

2 Answer

R
rizki rosadi 19 Dec 2020, 16:41

@Teguh: Is it better to use a foreign or local broker, min?

Personally, I feel more comfortable using a foreign broker. The reasons are many: greater leverage, smaller minimum deposits, and lower transaction costs.

So why was there an offer from a local broker the other day, but the first investment had to be 100 million, and even then it wasn't clear what would happen next. What I mean is, it's very different, foreign brokers let you trade from $10, why don't local brokers do that? After all, it's the same trading.

The value of 100 million is the minimum deposit for a standard account at a local broker. Their standard account has a minimum volume (lot) of 1 lot and leverage of 1:200, so the ideal minimum capital is 100 million. However, some local brokers now offer mini accounts with a minimum volume (lot) of 0.1 lot, so the minimum trading capital is smaller, at $1000.

Meanwhile, at foreign brokers, the minimum volume (lot) is 0.01 and leverage can be more than 1:1000. Under these conditions, the capital required to open an account is smaller, even down to $10.

Hope it helps, thank you.

T
Teguh 21 Dec 2020, 13:12
Crazy how the difference is so vast, the trading requirements of foreign brokers are strict but simple, unlike unclear local brokers.

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