1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Need your advise on account conditions

Discussion in 'General Forex Talk' started by denkhaus, Aug 24, 2008.

  1. denkhaus

    denkhaus Recruit

    Joined:
    Aug 24, 2008
    Messages:
    2
    Likes Received:
    0
    Hi Guys, my Forex account has reached 100000 EUROS last week. This is no joke!
    My broker called me and offered me better account conditions as:

    GBP/JPY 3 pips
    Eur/GBP 2 pips
    AUD/USD 3 pips

    the other pairs with +/- standard spread.

    And a cutted trading session:
    Fridays 1 hour less and sundays 1 hour later.
    Is this trading session cut usual and the spread acceptable for that account Balance or shouldt i refuse the offer?
    And how tight is spread on EUR/USD, USD/JPY and GBP/USD whis this account size on a Metatrader Broker normaly?

    Thank you!
     
    #1 denkhaus, Aug 24, 2008
    Last edited: Aug 24, 2008
  2. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,634
    Likes Received:
    2,189
    Some brokers do offer better (or at least different) terms to large accounts.

    If you don't tend to trade in the final hour Friday and the first hour of Sunday, then it shouldn't be too big of a problem - just be aware that losing those two hours could lead to a bigger gap in prices if you leave positions open over the weekend.

    Of course, if you have that much money, it might be time to pull some out and start testing another broker or two. This will also protect you in case any one broker suddenly decides to confiscate your profits, go bankrupt, etc.
     
  3. Sergei

    Sergei Private

    Joined:
    Aug 25, 2008
    Messages:
    13
    Likes Received:
    1
    Yes, withdraw some of the funds. You can still manage your money as if you have 100,000 in your acct even if you don't - as long as that money is kept for trading purposes in another account and you have enough margin to cover all your trades if they go wrong.
     
  4. denkhaus

    denkhaus Recruit

    Joined:
    Aug 24, 2008
    Messages:
    2
    Likes Received:
    0
    Thank you for your replies, i will do that!!
     
  5. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,634
    Likes Received:
    2,189
    Good point Sergei. Even if you get a broker that pays you a pile of interest on your unused margin (a few brokers do pay some interest on this), once an account gets past a certain size, there's no reason not to move some of your money off into a "Trading Reserve Account" at a good bank (NOT the same bank your brokerage uses). This is one more way to shield yourself against total loss in a bad situation.
     
  6. peter wilkes

    peter wilkes Recruit

    Joined:
    Sep 4, 2008
    Messages:
    6
    Likes Received:
    0
    sorry for my ignorance , but under what circumstances can a broker confiscate your profits? now i'm really scared regards Peter
     
  7. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,634
    Likes Received:
    2,189
    Depends on the broker. Some brokers ban news spike trading. Nothing happens until you try to withdraw the profit. Then suddenly, the trades are reversed. Some brokers have rules against scalping and will take those profits away from you.

    Read the Terms of Service and Customer Agreement VERY closely. If you are unclear on something in these documents, don't call or live chat with them. Ask this sort of question in email so that you will have a written record of what is said in case there is a dispute later.


    Some brokers are complete scams. ForexGen has a long list of reasons to reverse trades that pretty much boils down to: We can take as much money out of your account as we like for any reason we can think of whenever we feel like it. PoltekFX considers significant profits to be a sign of cheating and will use this as an excuse to confiscate profits.
     
  8. peter wilkes

    peter wilkes Recruit

    Joined:
    Sep 4, 2008
    Messages:
    6
    Likes Received:
    0
    Thanks for that Pharaoh, being a newbie I wont be doing long trades .To get experience Ill be doing small trades although not 1or 2 pips more like 20 or more is that still in the scalping catagory? And I'll certainly take your advice on the email , if its ok Ill put the response on here if thats not breaking any rules.
    Regards Peter
     
  9. Sergei

    Sergei Private

    Joined:
    Aug 25, 2008
    Messages:
    13
    Likes Received:
    1
    It is much safer to go with one of the bigger, well-known brokers. I don't wanna mention any names, but most people know who those are. I have never had any major complaints against any of them. There is no reason to go with an unknown broker, and plenty of reasons not to.
     

Share This Page