Six tips that every forex trader can use to avoid a bad forex broker before opening a real forex trading account - forex trading online demo account

Six tips that every forex trader can use to avoid a bad forex broker before opening a real forex trading account ~ forex trading online demo account

Whenever money is involved, the glue that puts the concerned parties together is normally just as strong as the trust between those individuals. A struggling forex traders woes in the market can easily be magnified by a forex broker who is shoddy in his operations.This entire month we’ve appropriated our whole attention to the various ways through which someforex brokers cheat their clients. In this article we give a few tips on how a forex beginner can spot a bad forex broker and
as such avoid investing with him. These tips should act as a guide before trading live with the preferred forex broker.  

1.      Find out whether the forex broker has an office or branch in your country

An office refers to a permanent address. This is important because in case the normal means of communication such as phone or email fail, you can still know where to locate the broker and forward your complaint. Remember we’ve noted before that some unscrupulous forex brokers become unresponsive to your concerns however legitimate they may seem. It would be preferable to have a forex broker whose place of business is within your geographical location. This could help in case the need for instituting a legal proceeding arises. But this is just not possible because a region like Africa has probably only one online forex brokerage firm which is based in South Africa. If a forex broker has an office or branch in your country it is a clear indication that it has a good number of forex traders based in that country and that is one proof that the forex broker is legit and good in its business.You do not need huge capital to start trading. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars. 

2.      Ascertain whether the forex broker has any pending court case and what the course of action is

You do not want to trade with a forex broker who is busy in court answering to court charges of financial malpractices. Your forex capital could be going into paying for legal fees. Find out whether the course of action is in relation to manipulating the trading system, charging spreads other than those indicated in their website or failing to pay their clients when the call is made. If your preferred forex broker is answering to such charges, I would advice that you look for another forex broker. What is the need of banking your forex capital with a broker accused of stealing from your own kind?

3.      Read reviews about the forex broker

Reviews about every forex brokerage firm is accessible free of charge all over the internet. I am not talking about reviews that greet you the moment you log into a forex brokers website, those are solicited reviews and only paint a rosy picture of trading with that forex broker which most of the time is false. You could just have landed on the site of a forex brokerstruggling to remake a dented image through false branding. There are sites which provide both negative and positive reviews about a forex broker. From those reviews you can determine the average star rating of a particular forex broker. If your preferred forex broker’s rating falls below three, you should keep off. The good thing about reiews about a particular forex broker is that they help you to learn from victims of the forex broker before you can invest your forex capital.

4.      Ask the forex broker to clarify the terms of his contract with a trader

The first thing is to know whether the contract terms are subject to change and whether or not you will be subjected to those changes without notification. Forex brokers have a bad habit of including into the contract terms favorable to them which had you been made aware of you would not have hit the ok button. This include a term providing that the forex broker will have unlimited access to your bank account or that your forex capital will suffer a reduction whenever you take a particular duration without trading. Ask the forex broker whether the contract contains other hidden charges apart from the normal spread charges and roll over costs. Ask the forex broker whether you will be allowed to execute a trade even without the required margin.

5.      Demo trade with the forex broker before opening a live trading account

Demo trading with your preferred forex brokerenables you to learn how his trading software operates and get accustomed to it. If the trading system contains some features you are not accustomed to, you will be able to seek clarification during account opening. This will lessen the difficulties of entering and exiting trades on a live chart. The frequency with which charts on the demo account freeze could also point to the nature of the live charts on a live trading station. You do not want to trade live on a trading station with charts that freeze whenever you have an open position and would like to exit or adjust your stop loss or the take profit order.  Some forex brokers actually give free trading advice whenever you decide to demo trade with them. They call to ask your experience with the trading station and whether you are facing any challenges. If you lucky to bounce onto such a forex broker, exploit the opportunity to the fullest in readiness for the day when you decide to run a live trading account where real money is involved

6.      If you decide to have a trading account with a particular forex broker, put the broker to test

Your first approach to any forex broker should be that you will only invest a small sum of your forex capital with him within the first month. Even though you are in a position to trade standard lots within the first month, that does not imply that you should. Let the forex broker have only a small bite at the cherry. After that call and say that you would like to close down your forex trading account. See how he responds and whether he will demand to keep your forex capital. You can also trade and if you make some amount, ask to withdraw the profits. This should show you whether the forex broker practices what is in the written contract and the procedures involved in getting your money from the forex broker.

In conclusion, it is a thin line between meeting a bad forex broker or a good forex broker. Observe the above tips in your dealings with any forex broker if you are to avoid ending up a cautionary story for your fellow forex traders. Finding a good forex broker means more than you can imagine to your success as a forex trader in the online market. It is comparable to find a good lifetime partner. You meet the wrong one, you meet the devil.
Call us today on 0725 050 419 for the best forex trading orientation.

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