Forex Brokers: Things To Look For & Watch Out For In A Forex Broker
Finding the right Forex broker can be tough, sometimes it can be a tougher task than trading itself. When looking for a FX broker, there's so many things to consider. It's important to consider the country their based in, independent reviews from other traders, the minimum deposit the broker allows for, the type of platform the broker has etc.
Here's just a few things to start with when looking for the Forex broker you want to trade with:
We've all heard that it's important to look at a broker's reputation to make sure they're not "scamming" people, it sounds cliche. Well this is a legitimate concern. Every Forex broker is going to tell you "we have the best spreads, we have the best trading, you can make the most pips with us, great bonuses blah blah" but the truth is, there's a lot of brokers out there that will take your money & run.
Let me give you a quick example. One of the most popular FX brokers, with offices in many countries, pulls a simple trick that just a select few (one's that I personally would steer clear of) use to make some extra money from their traders (us), it's called a margin call.
A margin call is when a broker decides to close a trade because they think the trader has lost too much money or will lose too much money even before the stop loss is hit, it's very subjective.
This can cause a trader to lose money, lots of it, especially if their in the middle of a drawdown which is when a broker's most likely to issue a "margin call"
Point: Before signing up with a broker, ask a customer service rep or look on the FAQ if they do margin calls.
Forex Broker Bonuses
Ah the good ole bonus. Having a great broker bonus can really help you make more pips & earn the most money possible from your FX account. There's many kinds of bonuses, including competition bonuses, sign up bonuses, no deposit bonuses (great to get started free & learn the ropes).
Some brokers offer $1,000 to get started or, better yet in some cases an additional 10% of your initial deposit when you first start trading
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