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play safe when choosing brokers

Discussion in 'General Forex Talk' started by clem699, Dec 8, 2009.

  1. clem699

    clem699 Sergeant

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    I am amazed at what i read on this site regularly concerning traders who choose brokers without proper evaluation or simply because such brokers promise almost profit trading and little or no risk at all.In fact,some will even add more money to their initial deposit at the request of the brokers who promise to pay in full deposits with profits only for such traders to realize that they are being robbed the second time.

    My experience with a brokerage firm whose staff have continually disturb me telling me to open account with fantastic promise on investments,so on and forth till i finally i decided to engage one of their staff at the customer dept.on some fundamentals on forex trading.To my greatest surprise,this firm which has 4 ratings on this website has no CUSTOMER AGREEMENT page.For me,entrusting your money with any broker at all is a business contract and i believe that their must be agreements binding the two parties i.e the broker and the customer on the other end.I was surprised when the guy at the customer dept.told me that he does not know what a trading agreement was i was amazed.I tried to simplify it as possible but instead he stopped the conversation.

    Trading Agreement is an essential consideration when choosing a broker because the intending customer will be able to know what to expect from the company and if he is not satisfied can move elsewhere.Trading Agreement should cover every aspect of the company's operations and trading policies;hedging policies,FIFO rules,swap,margin call level,interest rates,wrong quotations,withdrawals/deposit policies,bankruptcy,other forms of conflict resolution just to mention a few.It is with this agreement that a trader can base his argument should conflict arises.In my view,apart from regulations,capitalization,customer base,trading platform,spreads etc,Trading agreement is very important and any broker who does not have such conspicuously displayed on its website is not to be trusted with money at all.
     
    #1 clem699, Dec 8, 2009
    Last edited: Dec 8, 2009
  2. Gurpal

    Gurpal Recruit

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    Hi Clem,

    Hope you are well. Thank you very much for your informate desecriptiong regarding contracts between brokers and ourselves very helpful. I have found a lot of brokers constantly sending me emails to join up as well and that when I have engaged with them they are not very interested in what I have to say and are just looking to sign me up. For me that is an instant no no as well, and I dnt even wish to even be informed to know about the details of the contracts they have in place between the client and themselves as they have already lost my trust as they are not even listening to me.

    Thanks and take care

    Gurpal
     
  3. Pharaoh

    Pharaoh Colonel

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    Excellent advice from both Clem and Gurpal!

    Read the contract. If you violate the trading terms, then the broker can cancel those trades. If the terms are too vague or are unacceptable, don't open an account with the broker.

    Always ask questions first. Naturally, they will try to sell you on opening an account (it's their job), but if they show no interest in answering questions, take your money and run.
     
  4. boyremy

    boyremy Recruit

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    Is It Safe Trading Live With Forexmeta

    I AM NEW TO FOREX, HAVE BEEN DEMO TRADING BOTH MANUALLY AND WITH EAs LIKE FAPTURBO,MEGADROID AND IVYBOT.
    I WANT TO KNOW IF THERE ARE TRADERS ON THIS FORUM TRADING LIVE WITH FOREXMETA, AND IF IT IS SAFE TRADING LIVE ACCOUNT WITH THEM.
    PLEASE RESPOND ASAP
     
  5. clem699

    clem699 Sergeant

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    I do not trust EAs especially the ones developed by other people.I believe that the best way to have consistent success in forex trading is by being independent,i mean developing a trading strategy which will be for you but we are two different people.I do not know anything about does products,you may check:
    http://www.forexpeacearmy.com/public/forex-software-reviews

    http://www.forexpeacearmy.com/public/trading-system-reviews
     
  6. clem699

    clem699 Sergeant

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    There is this fine article by Pharaoh where he wrote about factors to be considered in broker selection.If you consider issues mentioned in that article,no broker will blindfold you because you will know what you want.

    You do not even need to ask anybody to assist you in your choice.
     
    #6 clem699, Feb 2, 2010
    Last edited: Feb 2, 2010

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