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Reliable Forex Brokers - Do they exist? Help!

Discussion in 'Forex Company Comparisons' started by Moz, Jul 1, 2010.

  1. Moz

    Moz Recruit

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    I am still on the lookout for reliable forex brokers out there. Can someone who has years of experiences in the forex market dish out to us newbies on which Forex Brokers are decent enough to not let you run dry and let you withdraw your winnings?

    I have gone through FPA's own Forex Brokers Reviews, and I am appalled by many of the scammer brokers out there and horrified at the sad cases experienced by so many clients out there.

    Based on your live trading experiences, can anyone here mentioned a few Forex Brokers who are more or less decent and more or less honest in their business with their clients?:unhappy:

    Thank you.
     
  2. RahmanSL

    RahmanSL Major

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    Moz,

    Almost 9 months into Forex and I am (well, almost) in the same situation as yourself. I am still on Demo, almost jumped into Live Account a few times, but either backed out or due to some verification issues (as is the case with FXopen), I am still a perfect “virgin” in Live account forex.

    But I have now narrowed down my choices down to just 3 (ok 4) brokers (from a field of 12 brokers) and there are, in preferential order (for the present moment):
    1) Tadawul
    2) MBTrading
    3) SIGTrader (FIG)
    4) FXopen (if I can managed to resolved their archaic verification document system)

    To be perfectly honest, FXopen was my first choice some two months back, and I even registered 3 Live accounts (micro, standard, and ECN) with them pending acceptance of acceptable verification documents. In fact, from “winning” a private very friendly competition, an internet Forex Trader has even funded usd5 into my ECN account by mistake (my mistake) instead of to the micro account in order to give me a taste of what trading a Live account is like. Alas, that usd5 is languishing in that ECN account and will most probably be closed out due to none activity for 3 months.

    Come to think of it, I think I will sign up with GoMarket for a Demo account as they have e-mailed me some very nice invitation to try them out.

    So, Moz, take your pick at the above brokers and try out their Demo Trading Platform. Remember to have lots of patience and don’t get too over confident when we start making thousands of dollars in our Demo accounts. To date, I must have wiped out at least usd1.25 million in virtual Demo money 

    There will come times when we Newbies get fed-up and lost hope with being successful in forex trading, but just give yourself some space and then come back in and give it another go. I firmly believe we all can be successful in trading forex…the trick is to be a smart trader and not just trade for the sake of trading!

    Best of luck in your venture, and watch out for those scammers masquerading as brokers in the forex world; yah!
     
  3. Moz

    Moz Recruit

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    Hello Rahman,

    Thanks you so much for your reply. Your reply has been a very informative and educational one as well. Yes, I am at this moment still on the lookout for a reliable and honest, well more or less, since of coz there's no 100% honest brokers out there, since it is a business world after all and any forex broker wld squeeze out even a 0.01 cent profit out of any client of theirs, and multiply that by the number of clients they have and walah! Significant profits:eek:oh:

    Actually, I was considering Tadawul FX in the beginning as well before I posted dz thread, but after using their MT4 demo and compared theirs with FxPro's, I found that their MT4 demo platform is slow/lagging to show the current market price as opposed to FxPro's, and that has put me off Tadawul. I don't know if it's a server problem, or because it is a demo platform, so I can't say for sure.. but still, it just looks fishy because of that...and therefore I may have to dismiss Tadawul...for now..

    MBTrading seems to be like a reputable broker. Have you tried their demo account? I have not tried theirs yet, but I know they's using MT4 with ECN, their modified version, so their price execution wld not be an Instant Execution but instead a Market Execution. Since you have been trying out frx for nine months now, I'm still a much younger newbie compared to you, just approx. 3-4 months now, hence, can you explain to me what is the difference between those two executions and which one is more profitable to us clients? And if you know, with them usg an MT4 + ECN platform, do they charge you commission in addition with each 'Market Execution' instead of the usual Instant Execution available in the MT4 platform? It seems like a rather inovative and profitable platform since ECN is the 'it' nowadays for us to avoid NDD, but I still have doubts on whether MBTrading's MT4+ECN platform wld be more profitable compared to other brokers with ordinary MT4 platforms with the usual Instant Execution and of coz with DD.:mad: Hope you can enlighten me on this.

    Much appreciated, Rahman. Cheers!
     
  4. RahmanSL

    RahmanSL Major

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    Hey Moz,

    Sorry I lost this thread for a while back there and I just came back to it a moment ago.

    All the different brokers’ platforms that I have and is still testing are Demo ones. And all their platforms will have one malfunction or another some days. I even had a “hung” opened trade positions (MBTrading platform) which I cannot close and they had to do that for me from their side, so that makes me wonder what would happen if that is a Live account. Their Rep assures me that doesn’t happen in a Live account…so that should be reassuring to us; wouldn’t it?
    I have not tried out FXPro and so cannot comment on them.

    Back to MBTTrading, yes they are ECN with MT4 platforms (but so is FXopen and a few other brokers), but they don’t allow hedging; yah!
    However, since trying ECN platform (MBTrading & FXopen) for sometime now, I don’t think I like it (ECN) that much due to (sometimes) slow execution of orders (as can be expected due to market demands) and orders are not always filled with the required lots (i.e. a 1.0 lot order might get filled with only 0.6 lot)…plus, you cannot buy or sell when the currencies pair is over subscribed. This can be extremely frustrating especially if you can see that a certain currencies pair is profitable for scalping, but you cannot get in due to “Over Subscribed”.

    ECN charge commission for trades in both directions (i.e. Buy/Sell and close), but if we can afford to use ECN, then we should not be overtly concern with the commissions as it is quite minimal compared to the required Deposit money.

    I think we Newbies should just start with a Mini/Micro Live account with a reasonably trusted broker and get ourselves familiarized with the “Deposit” and “Withdrawal” system in anticipation ( : P ) of future huge withdrawal(s).

    After none months of Demo Trading, to be perfectly honest, I am getting tired of making “virtual profits” and it’s time to make “real profits” : )

    As a matter of interest, I opened 3 Live accounts (ECN, Standard, & Micro) with FXopen some months back, and one of my internet friend even funded me (via internal transfer) usd5 to try out a Live micro account. Due to my ignorance, I gave my friend the ECN account (instaed of the Micro account) by mistake and so couldn’t trade in that account due to insufficient funds.

    To cut a long story short, I couldn’t be verified by FXopen anywhere as they required “Utility bills” (namely water, electricity, gas) which are not in my name (but in in my wife’s name) and they rejected my registered mobile phone and Internet bills (even though these monthly bills have my full name & address on them). Now I’ve lost the ECN account (along with the usd5 gift) due to none activity for 3 months and I think I will loss the other 2 accounts pretty soon too. So, no FXopen to me for now.

    However, I have since then very easily opened a Live account with Tadawul FX and they have no problem whatsoever accepting my mobile phone bill for verification purpose. Likewise, there are a few more brokers who have indicated acceptability of my monthly mobile phone bill for verification purpose and so I will give them a go at a later time.

    My advice for now is to start out small and get ourselves familiarized with all the nitty-gritty of forex trading along with depositing and withdrawal of funds. Demo trading is great for practice, but after a while, it gets boring making seemingly easy virtual profits. If making profits is that “boring”, then we might as well make real “boring” profits with real money; right? : )
    But I found Demo account useful in "testing out" currencies pair before placing orders on Live account...i.e if the order immediate goes against me in the Demo account, than it would be wise to place a reverse order in the Live account.

    Cheers and all the best in your venture and do keep in touch to check out progress; yah!
     
  5. Trader1

    Trader1 Recruit

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    my dream is to find a honest reliable broker who pays out

    so did anyone find a honest reliable fx broker yet?
    after 2 years trading in stormy waters Im still in the search for one.
    all I wan't is to trade without having some idiot broker sabotaging my trades,
    and someone who will pay out my winnings,
    is that to much to ask for?
    so far I have not been able to find one,
    and after viewing all the reviews here in FPA
    there is allways someone who has been scammed,
    Im begining to believe they are all scammers:shocked:
     
  6. Globe Gain

    Globe Gain GlobeGain.com Representative

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    First of all, let’s clear up what we mean by ‘honest and reliable brokers’. Among their distinguishing features it would be right to name proper and well-timed order execution, non-problematic asset withdrawal and, of course, safe keeping of clients’ funds.

    All this is well-known to you. But the question is how to find a broker which boasts all these characteristics.

    Let me give you some guidance on this.

    1) Pay attention to brokers’ business reputation. If a broker is caught in frauds, financial machinations or legal proceedings it becomes quickly known on the net. However such information should be carefully checked as not infrequently tarnishing messages are written by representatives of certain brokers whose target is to ruin their competitors’ reputation. So, trust only official information sources.

    2) Check how a broker protects its clients’ funds in case of bankruptcy or other unforeseen misfortunes. The best way to limit risks in this regard is to segregate clients’ accounts from the broker’s ones. It prevents a broker’s access to its clients’ funds. Besides, proper brokers have different schemes of risk insurance. They cooperate with insurance companies and compensation funds where their clients can insure their assets against risks.

    3) Study basic trading conditions offered by a broker. Be careful with brokers which offer access to Forex market with the initial deposit of 1$. Most of such companies are concerned only about attracting as many clients as possible and don’t bother about the quality of their services.

    4) Read the agreement with the broker attentively and be especially careful with such issues as the subject of the contract, recipient of funds and contracting parties. It’s a wide-spread practice for scam brokers to have several legal entities, for instance, one regulated which they use for promoting themselves and one located somewhere in the offshore countries which very often is mentioned as a contracting party. Then make sure that there are no third parties to the contract otherwise you may have problems with asset withdrawal – it may be not clear who is responsible for the transfer of the earned money to your account.

    5) And at last we’re approaching the most important issue – licenses. Check if the broker is licensed by some prominent international or local (but non-offshore) regulatory body. It’s really of importance as approval of financial supervisory authorities implies that the broker must observe strict quality control standards and ensures that your trading with the chosen broker is fair and safe. So to cut it short, if a broker is regulated you don’t have to bother your head with the stuff I’ve written above. Though to be on the safe side… =)

    As has been mentioned be careful with brokers registered offshore as they are not under such a rigid control of the government and it certainly excites certain doubts about their reliability.

    You can learn more information about trusted Forex regulators and the brokers licensed by them on the site globegain.com

    Happy trading!
    Troy Bening.
     

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