When it comes to choosing a reliable Forex broker, there are so many factors to be considered. Factors like prompt withdrawals, reasonable bonus programs, instant deposits, 24 hours up-time server, good working platforms and a 5 star customer service support. The constant war we wage on the Forex market on daily basis as traders is enough to give us emotional stress not to think of going through extra emotional turmoil from brokers.
I have come to realize that a lot of Forex traders would have been profitable or more profitable in this business if they had transacted the Forex market with a reliable broker. Most new bees in the business do not know the major role brokers play when it comes to becoming a successful trader. Have you ever come across a long wick or spike of 90 pips on a particular currency pair on your trading platform and unfortunately it doesn’t seem so on your other broker? Yes its what you thought! Its called manipulation, hunting of stop losses by creating false spikes.
I have observed that there are 2 major ways brokers make it difficult for traders to make consistent profits in Forex trading. The 1st model they adopt is by making it difficult for traders to earn profits from there trading platform. This platform manipulations includes enormous spread widening, slowing of order executions, unusual server time-outs, poor order fills and many others. This factors enough can trigger negative emotions for traders causing them to make wrong trading decisions that sometimes lead to their account being wiped out. The 2nd model of frustrating traders and which is the most horrific factor is declining or not processing withdrawals. Imagine after all the emotional turmoil traders goes through with the Forex market itself to make profits and then you send withdrawal request only for it to be declined.
What is the point of opening a Forex account if the funds we deposit will be unsafe with the broker, or worse yet, will be stolen and misappropriated? What is the logic of studying analysis and currency fundamentals if the profits that we make are pilfered by shameless crooks, or squandered by irresponsible individuals who cannot even manage themselves decently?
The retail online trading segment of the Forex market is a development of the 90’s, these days there are already hundreds of Forex brokers of various sizes springing up from different locations and offering their services to clients, in spite of the recent economic crisis, growth continues unabated. Unfortunately, due to the lack of a regulatory body that controls these various institutions, many fraudsters consider the retail forex business a most profitable environment for their nefarious purposes. To avoid the troubles associated with such people, we advise you to work only with regulated, licensed firms. However, over the years, even the so called regulated brokers also involve in scam operations. So who are you to trust?
There are enormous competition between Forex broker-dealers, each one offer different features and advantages. However, choosing a reliable broker is not an easy task for any new or experienced trader. There are some key aspects like enormous client-base and capitalization which speak for the reliability and competence of the organization and which can be measured following certain objective criteria.
But the real challenge in choosing a broker comes when you have to determine what attributes you are looking for. Along with the outstanding features, you might find a potential weakness, depending on what you need for your trading style.