Backtesting

If you have a rules-based trading system, you'll probably want to backtest that system at some point. Sure, you can buy third-party backtesting software, but if you want to backtest regularly, why not trade with a broker that offers the software for free?

MetaTrader is considered the industry standard for backtesting technical analysis systems among active traders.

It is also worth noting that there are different levels of backtesting. Most stock traders are looking for portfolio backtesting, where a portfolio is created based on criteria and historical performance is measured. As opposed to backtesting software that tests your strategy on just one security.

Trading Simulator

Most traders open their brokerage the same way they open their trading experience (i.e. the worst time to trade with real money). As a result, they tend to lose a bunch of money in the first few months before either A) taking some time out of the market to develop a rigorous trading strategy, or B) quitting.

Many brokers offer free trading simulators that give you a portfolio of about $100,000 in play money to trade with. The only difference is that a play money account cannot accurately predict how likely you are to get filled on your trades.

With a trading simulator, a disciplined novice trader can try different strategies until he finds something that is both profitable and fits his personality.

Margin Rates

In the discount brokerage industry, margin rates vary widely, so much so that when trading a large account, reducing margin rates can improve your bottom line by several thousand dollars per year.

If you trade on margin frequently with Exness Singapore and Asia, this can be the most important aspect of choosing a broker, as it will make a noticeable difference in your bottom line.

In the table below you can see an overview of possible margin rates and their financial product.

Concluding remarks

Depending on your trading strategy, your broker may make up the difference between a green and a red P&L for the day. Qualitative factors such as your preference for their trading platform can have a similar impact as quantitative factors such as transaction cost analysis.

Many begin intermittently depositing cash from their paychecks into their brokerage accounts and reach a point where they feel tied to one broker.

The only way to avoid this is to first spread your money across a few brokers that suit your interests.