question about brokers

upwards · #1 (**permalink**) 14-02-2009, 14:11

hi ash and everyone

i'm new to forex, and have been doing a little reading on my own over the internet.

although i havent opend a live account yet, what i keep hearing is how brokers behave very bad to their client??

basically i just wanna know are these stories true? because it worries me i hand over my money to someone who i cant trust.

please advise. thanks.

~fade~ · #2 (**permalink**) 17-02-2009, 15:47

I've seen a number of horror stories out there. Much of it comes down to lack of regulation & oversight I believe. I don't have any input about specific brokers either good or bad.

As with most things, it's up to the individual to safeguard his/her own wealth. Proper money management, use stops, and make regular profit withdrawls from your broker.

-Dave

upwards · #3 (**permalink**) 26-02-2009, 19:43

thanks fade.

could i ask, which broker do you trade with?

noblehobo · #4 (**permalink**) 06-04-2009, 01:17

hi upwards,

you should check out the broker section that Ash has set up. I know that a few of us have posted our thoughts and experiences with various brokers and you may find some of it interesting / helpful.

tomo1 · #5 (**permalink**) 13-09-2009, 21:11

hello
I agree
always check about the broker you are going to work with
forums can help you,
I know most of them,
let me know if you need more advises.
U need to know what services suit you the best too!

waybeck · #6 (**permalink**) 14-09-2009, 02:06

u also need to check if they have there own in house trading desk

jason · #7 (**permalink**) 25-06-2010, 19:26

your approach to choosing a Forex brokers should be somewhere similar to the process of choosing the right bank to trust your money to: reputation, transparency, convenience of carrying operations with money, good customer support.

As practice shows, many Forex brokers may forget to update their websites according to newly changed trading conditions, e.g. show 1 pip spread while in reality it is already 2 pips, allow scalping, while in reality - don't. If you don't read Client Agreement, but instead simply put a check box "I agree" in front of Terms and Conditions while applying for an account, you're doing yourself no favor.

jason · #8 (**permalink**) 03-07-2010, 11:51

One of the best ways to choose a forex broker is to check if the broker is registered by the National Futures Association (NFA). Because the forex market is largely unregulated, forex brokers do not have to be members of the NFA, but they can register if they want to. If they are members of the NFA, then the firm can be checked out by using NFA’s Background Affiliation Status Information Center (BASIC). Here you can find out about the firm, its main principals, and about any regulatory actions against the firm and their resolutions. It is highly recommended that you do not do any business with any broker who is not a member of the NFA.

goldie123 · #9 (**permalink**) 01-10-2010, 16:21

a) if a broker has been in the industry for more than a decade - it tells you that the company knows a lot about doing Forex business and caring about clients, otherwise it won't be here today.

b) if a broker is regulated by a major regulatory body in its country - it tells you that a broker is serious about its business and making necessary efforts to align with rules and requirements imposed by the supervising bodies.

c) if a broker offers more that one trading product, e.g. besides Forex also has Futures, Stocks, Options, Commodities, CFDs etc - it tells you that a broker runs a larger business, carries more responsibilities and has more clients trading with them.

Tradinger · #10 (**permalink**) 25-04-2011, 12:56

Quote:

Originally Posted by goldie123

a) if a broker has been in the industry for more than a decade - it tells you that the company knows a lot about doing Forex business and caring about clients, otherwise it won't be here today.

b) if a broker is regulated by a major regulatory body in its country - it tells you that a broker is serious about its business and making necessary efforts to align with rules and requirements imposed by the supervising bodies.

c) if a broker offers more that one trading product, e.g. besides Forex also has Futures, Stocks, Options, Commodities, CFDs etc - it tells you that a broker runs a larger business, carries more responsibilities and has more clients trading with them.

I can agree with everything but b) is definitely problematic. There are a lot of regulators and some of them are just fake.