Forex Brokers – be Careful Many of There Services Help You Lose!
You have a choice of lots of good forex brokers but most traders don’t really understand that many of the services they offer will see you destroy your account.
Let’s make a couple of points clear about the majority of forex brokers:
They are market makers this means when you lose they win as they take your account on there book – there interest is in you losing to make money. Now is this a bad thing?
No not at all it’s why they are able to offer you such a great service and the fact they win when you lose helps them provide a service.
Don’t fall for the myth that brokers hunt stops and try and make you lose – brokers don’t bother. They know that the trader will beat himself without any help from them, so they don’t need to.
95% of trading accounts get wiped out and that ends up in the broker’s pocket.
So they offer great services but most traders don’t know what to expect from a broker and misuse them and fail and keep in mind the broker is playing the odds of most traders losing and if you cannot use the services they provide properly that’s your fault.
You can get up o 400:1 with most brokers today and that’s great but high leverage in a novices hands soon leads to wipe out just because you get given bi leverage doesn’t mean you have to use it all! 10 20:1 is enough for most traders especially novice ones.
You can open an account with $50 online today and while this allows anyone to get involved trading $50.00 is pointless as you will get destroyed by random volatility and of course leverage if you use it. Sure anyone can trade but forex trading needs a capital base which can allow you to take a few losses so think in the 1 – 5,000 as a minimum and 10 – 20:1 leverage as the maximum you should use.
Forex trading is all about staying power you are going to lose at some point and have drawdown and you need to ride these periods out and you wont do that on 50 or 100 bucks. If that’s all you have, forget forex trading.
Broker Trading Guides and Research
Most of the critical info provided in the guides is nothing of the sort its stuff you can get anywhere online. Do you really need to be told to cut losses and run profits or you must be disciplined? Research is normally news stories and obvious technical levels – if you want to lose follow there research!
A good idea on learning the basics of the trading platform waste of time in seeing if you can win at trading. Many traders are good in demo account and then blow their accounts up in real time. Real time trading involves pressure and without it you don’t have an authentic trading experience.
When you get a broker keep in mind all you need to do is select them on the basis of pip spreads, ease and reliability of trading platform use and the security of your money and then all the services offered to you be careful of them as they are double edged sword.
Brokers don’t make you lose, they provide you with the base to win and offer excellent services but make sure you understand them and use them correctly.