bump for a great thread
Iâm also a newbie and Iâve been reading a lot of articles here that helps me understand more about forex. I thank babypips.com for creating this website. Iâve been searching for sometime now and luckily i found you guysâŠ
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I totally agree with you! A lot of great threads here thatâs super helpful to newbies, including this one. Big thanks to @eddieb!
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Choosing A Broker
Following on from my earlier post on selecting a broker, I thought these points were worth reiterating.
Check if your broker is regulated. If they arenât, that should be a big red flag against using them. The main regulatory bodies are;
United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt fĂŒr Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
Canada: Autorité des Marchés Financiers (AMF)
Avoid anyone regulated in Cyprus, Vanuatu, St Vincent, or anywhere else where the âregulationâ is not worth the paper itâs written on.
If possible, try to use someone regulated in your home country. At the very least, if something goes wrong you can take it up with a local regulatory body, law enforcement, fraud helpline, politician, or even get your local Watchdog-type TV programme involved. Difficult to do this if youâre thousands of miles away and donât know anyone.
Donât choose a broker based on who gives the biggest account bonus or cash back. If they need gimmicks like that to attract custom, they probably arenât worth trusting your hard earned cash to.
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Regulation of brokers
A definition
The objective of regulation is to ensure fair and ethical business behaviour. In their turn all foreign exchange brokers, investment banks and signal sellers have to operate in compliance with the rules and standards laid down by the Forex regulators. Typically they must be registered and licensed in the country where their operations are based. Licensed brokers may be subject to recurrent audits, reviews and evaluations to check that they meet the industry standards. Foreign exchange brokers may have capital requirements which require them to hold a sufficient amount of funds to be able to execute and complete foreign exchange contracts concluded by their clients and also to return clientsâ funds intact in case of bankruptcy.[citation needed]
Each Forex regulator operates within its own jurisdiction and regulation and enforcement varies significantly from country to country. In the European Union a license from one member state covers the whole continent under the Mifid regulation and has resulted in regulatory arbitrage where companies select the EU country that imposes the least controls such as CySEC in Cyprus. Not all foreign exchange brokers are regulated and many will register in jurisdictions that impose low-regulatory environments such as tax havens and corporate havens that form part of offshore banking.
Source:Wikipedia
The above should help clarify why I recommend not using brokers regulated in Cyprus or some of the more exotic offshore nations. If a broker chooses to base themselves in these places, they are not doing so for the benefit of retail traders. Note this covers signal sellers as well as brokers
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IMPORTANT UPDATE
Somewhat surprisingly, the FSCS have confirmed to me that non-UK residents who have forex accounts with FCA -regulated brokers get the same level of protection as UK residents
I donât know if other regulatory bodies with compensation schemes follow suit, but this should be good news for anyone living in a country which has poor or zero regulations as they can enjoy a decent level of protection by signing up to a UK regulated broker
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All the newbies are welcome to the trading world. I really appreciate the decision of the people who want to adopt trading as a profession as it requires guts to be adopted. Get education, keep practicing, get profits! Best of luck as well!
It is not an easy job to become a trade, sorry successful trader. You have to work hard for building a viable strategy for your trades. You also have to gain as much knowledge as possible. If you have the knowledge then you will gain adequate experience as well. Stay blessed!
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Forex Training Courses
Lots of these around, some from people who clearly know what they are talking about, others less so.
Are they worth taking?
Very few of these are worth paying for, the majority just churn out information that can be found here on BabyPips and elsewhere for free.
Some of the better ones might be worth considering, but bear in mind how long it might realistically take you to recoup the course cost. Also, and you wonât know this until you join, the first course is likely to be fairly basic and there may be pressure on you to sign up to later courses.
If youâre the type who learns best from face-to-face interaction and the cost isnt an issue, then you might benefit. I would, however, advise that you learn the basics for free here first so that you have some understanding before your course begins. And be prepared for the sales pitch at the end, this is where the serious money is made from newbies, so donât sign up on the spot, insist on taking a few days to consider- they will likely say they are offering a special price for that day only, I would take anything like that as a red flag and run for the hills
I hadnât realised this thread had been quiet so long.
Also hadnât noticed how many of the guys posting have stopped contributing here, for one reason or another.
Whatever happened to @Kreg, @Sheldon_Zhang, @anon46773462, @Lexys, and others?
I know eddieb is on notthenoobs.com and bob got banned, but there are loads more like laughing charlie who i havenât seen anywhere else.
Some names there Iâve not seen for a while.
I am still sometime to visit this website, but I am very busy on both day job and my EA trading business. The time for me are very precious.
The most important experience that can be shared from me is that:
- consistent profit is possible, I use 5 years to reach that, so much money lose in the first 4 years, and the 5th year, all the money come back and profit more
- I have a day job as a software engineer, so EA and scalping are my favorite style, and I am coding my EA for 5 years, and refine my scalping skills.
- Day job is very important before consistent profit got
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Very true, it is all about our mind set that how we want to be profitable and want to make money here. Nothing is impossible but we have to do hard work.
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I have decided after 6 years to move on to another trading forum.
I have made some good friends here, some of whom have also moved on and feel the time is right to join them.
Good luck with your trading, stay safe.
eddieb
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Beat wishes, one of the good guys