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.
Now
click here to
go to the next step in
your Forex trading
guide
