Thread: How To Choose A Forex Broker? Never Fall For Scams!

So you want to begin trading forex for profit and be part of the markets fastest growing investment opportunity Good for you! . Really,the forex market is is growing rapidly every day as more and more people discover that this is the last financial market where they can trade on equal terms with the big investors!

What you say? For one you don't have to compete against inside trading in the forex market. Those who don't believe that the stock market is full of inside trading after the last years of scandals in the financial industry needs to give themselves a slap in the face! Right on! Take a breath and face the facts that you will never be the new Warren Buffet. Forex trading on the other hand is the biggest and most volatile financial market in the world. Big money changes hands here every day than anywhere in the world. That is why small players have a shot at making lots of money.

But before you jump up and get your credit card, know that not all players out there are honest. Some go under the title 'brokers'. In real life they are better known as 'bucketshops'. It is a word that comes from the trading shops in America before the industrial revolution changed everything, where the only new information were transmitted trough telegraph. In small towns everywhere, there would be these brokers who would trade for citizens. In reality they never traded as they said they would, but bought the opposite position, and so betted against the trader. That practise is illegal today. But some brokers still carry on like that.

So you must look for reliable brokers who are market makers!

It's imperative to choose a reliable forex broker, after all, would you hand over $500 on the street to someone who you have never met before, if they were to offer you their brokerage services in commodities and stocks? You probably wouldn’t, because you’d expect some kind of independent confirmation of this individual’s claims with respect to his capability and authorization as a certified a broker. And the opposite course would be sheer folly, of course, since who doesn’t know the popularity of making a living from scamming people these days?

Strangely enough, when the “person” in the above paragraph is a website which offers to mediate currency trading, many people are a lot more trusting of the claims. The fine design of a website, the implementation of a trading software, the costs of creating a customer support staff convince many beginners that a company which makes these investments into creating the infrastructure for such an enterprise is unlikely to be run by thieves, crooks, liars, and their various other kinds.

And this is exactly where the power of forex forum comes into play. Peer-to-peer recommendation and word of mouth around the community is much more important than any amount of paid advertising.

Look for what people are saying on this forum and pay attention to information people are giving about their broker's overall conduct. Funding an account may well be an easy process. Withdrawing those funds is a different matter.

So who would you recommend? I have worked with a few and had pretty good luck so far.

There is much more to it than just me making a recommendation of a broker. What works for one trader might not work for somebody else. Personally I trade with Fxpro.

Just info, free $100 with http://www.fecima.com/