A simple online search will yield countless Forex brokers ranging from the highly reputable and well regulated firms who handle thousands of accounts to those using dubious means of practice, and also the outright frauds who are simply out there to deprive you of your money as fast as they can; sometimes even before you start your actual Forex trading.
Therefore, you should apply your common sense before setting up your Forex trading business – and this can be done by doing a thorough research in advance about a Forex broker, before investing your money. Such a wise action on your part will go a long way in avoiding any problems that may arise in future in the use or return of your funds that you have invested into your account with the broker. Here are some steps you should invariably take for avoiding problems with your Forex broker.
1. First you should know as much as possible about the broker with whom you are planning to open an account, as this will help you to save frustration in the long run. Opting for a reputable broker with a no re-quoting policy is the best place to start.
2. Your broker should be clear on the details of every aspect of your account, which includes margin money, lot sizes, leverage, etc. If you are completely comfortable with the terms and conditions, then you will be treated fairly.
3. As in the case of any contract, you should carefully read the fine print and ask the customer care service of the broker for any clarification on any clauses or terms that you have failed to understand.
4. Ensure that your forex broker has all the required tools, such as a practical trading platform with a well-organized order execution system that will make sure that you get the most out of your trading experience and steer clear of from any pricing issues that may possibly arise.
Last but not the least, you should avoid all brokers who have a significant pricing and account management issues or engages in questionable practices such as:
• Too much slippage
• Front running
• Stop hunting
• Forbidden strategy clauses