Tuesday, 21 February 2012

How to Get Good Forex Brokers and Avoid Bad Ones

The Spot currency market (FOREX) is unregulated. It does not have a governing body like the Security and Exchange Commission for the stock market watching over it. So there will be bad brokers. A bad broker will shade pips, take the other side of your order, etc. In general, they will definitely make it harder for you to make money.
Bad FOREX brokers is one of the main problems FOREX brokers experience. Some Brokers place spreads as large as 500 pips or more. Some stop their clients from placing favourable trades and blame it on technical hitches. Watch out!!!
How to Tell If a Broker Is Bad. The obvious to know if a FOREX broker is bad is to do a web search on the brokers. Know what people are saying about the. If there is no comment about them, go to their website. Check the leverage they offer. Is it 500:1 leverage or more? Be careful because the higher the leverage the more dangerous it is for you. Unscrupulous brokers make big money off of new traders blowing their accounts (as they take the other side of every trade).Though a big leverage can help you make more money, It is more dangerous.
How to Choose A good FOREX broker
There are always complaints that Brokers cheat on the traders and wants them to lose. It is true some trader do this but some a very good.
To know a good broker
1) Check the leverage they offer. If it is small, then it is good
2) Check their spread for each currency pair
3) Check what people say about them. Search it out!!
Read More below
If you the above information was useful you can read more free informations on forex, how to get good brokers, avoid bad ones and how to trade without losing at http://weirdforex.blogspot.com

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