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How Do I Get Started With Forex? 3


Brokers you should steer clear of 

Similarly to forex brokers that you want, there are also brokers that you will want to steer clear from.

For example, brokers who have the tendency to hastily buy or sell near pre-set points (also known as sniping and hunting) are small things that brokers do when they look to increase their profits.

Of course, no broker will actually acknowledge to their doing this, but there are methods of knowing if a broker has committed this transgression.

Regrettably, the only way for you to really determine which brokers do this and which brokers do not, is to communicate with your fellow traders. There is no real list or company that is in charge of reporting this kind of dubious activity. The main issue here is that you have to talk to others in person or visit online discussion forums to find some more honest, reliable brokers.

Strict Forex Margin Rules

When you trade money which is borrowed, your broker should advise you on how much risk you can take. Bearing this in mind, your broker can buy or sell at his discretion, which can also prove to be negative for you.

If, for example, you have a margin account and your position goes right to the bottom before it goes right up again, even if you have enough money to cover it, some brokers will choose to liquidate your position on a margin call at that low. This action from your broker can be quite costly. So make sure you get better knowledge (through chatting) of who are the honest, best brokers who can help you.

Registering for a FOREX account is very much like obtaining an equity account. The only main difference is that, for a FOREX account, you will have to sign a margin agreement.

The margin agreement basically mentions that you will be trading with money which is borrowed, and due to this, the brokerage company has a right to interfere with your trades in order to protect its own interests. Once you register, all you need to do is fund your account and you can start trading immediately.

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