I am relatively new to the Foreign Exchange Market, having been wooed by a FAP Turbo advertisement. I quickly, and quite recklessly I might add, have signed up for ForexMeta, a broker recommended from Forex Critic.
The investment was 500, plus the 30 dollars for signing up. The leverage was 100:1, something I knew little about.
It was only after learning about leverage and margin that I realized that I was “taking out a loan or credit card”, something I avoid at all cost. On top of that, I found the number of trades I could make was limited, and that if I failed so much, a margin call would come into effect. I am a beginner, and I need room to make errors.
So, this is what I am asking… and I need everyone’s help in finding this.
I am looking for a broker that will enable me to use my own money, meaning no leverage. I realize this makes “becoming a millionaire” take time, but it is also safer in my own eyes.
Second, I am looking for a broker that offers free VPS to it’s clients, while using MT4 as the client. I intend to use FAP Turbo for my trading as I have read the member forums and it is filled with people who are either asking questions or taking about the gains they have made… mostly asking questions.
I realize brokers make money through taking a certain number of pips with each trade, and I do not think it is necessary to ask for that to be as low as possible.
Either this, or someone can make me more comfortable with my current service. If I could invest my money with another Foreign Exchange trader with the promise of returns, then I am open to that too. 500 dollars is my maximum though…
You’ll want to find a swap-free broker to be compliant with your beliefs on credit and leverage. A good amount of broker’s offer these types of accounts. A simple google search for Islamic Forex Brokers or Swap-Free Brokers should get you along your way.
No, I do not want a swap-free broker. From what I have read, most brokers charge a premium for holding money over night. Also, I can not scalp efficiently with raised pip rates. In fact, the scalping strategy is the most successful I have seen in the FAP Turbo forums.
After reading about Arabic Trading accounts, and how interest is forbidden in these accounts, it seems more likely that you are setting me up to fail…?
Oanda allows me to trade with a 1:1 ratio, but they do not work with MT4. I am looking for… well, you read it.
edit:
You know what? I do not care if a little leverage is there. All I care about is the maximum amount of trades I can make and fail before Margin Call.
I think Mastergunner was trying to polite in response to a series of questions that indicate that you are just anohter FX sucker. The purpose of sites like this is to provide you with enough information and education, that you can prevent that outcome. I will go through your points, and forgive my harshness.
Firstly, you have found FX and decided the best way to win is to pay someone for an EA, and it will win for you without your having to understand much of anything. This is extremely dangerous. If this sounds like a good idea you should instead try flushing $100 dollar bills down the toilet at first, and if you like that, then move on to your plan.
I don’t even know where to begin with this, in FX, leverage is pretty much necessary to make any kind of noticeable profit. If your preference to avoid leverage is religion-based (as Mastergunner assumed) then you may need a swap-free broker, but leverage and swap are not the same thing. If it is just a personal preference, you will need a substantial account to make any reasonable profit. Also, without leverage, you will not have the “room to make errors” because all of your money will be on the line. At $500 USD, and zero leverage, your max allowable position size will earn/cost 5 cents per pip made/lost. 20 pips will net you a whole dollar, and 100 will net you $5 (or nearly a gallon and a half of gas here on the US). At such a rate you will either lose interest in trading responsibly, or start gambling just to show a meaningful profit.
I don’t know of any broker that provides such a service for free. Also the fact that so many FAPTurbo users are mostly asking questions should be a big red flag.
The spread is just the spread. Some brokers have variable spreads to reflect market liquidity, fixed spread brokers tend to “slip” orders and fill at less desirable levels to compensate for the lack of liquidity, this is especially hard for scalpers. Though some do succeed, so go ahead, give it a shot.
This one kills me. Seriously, trading is hard freaking work. It takes years to learn how to do it consistently. It is a never-ending process of learning and growing. Most folks here are here to learn how to trade. Maybe you should try that instead. With $500, what kind of annual returns would satisfy you? 10%? 20%? Most traders know by now that the risk is comensurate to the reward, and the kind of reward you need on $500 to justify the investment would likely require a high risk strategy, how much do you care about your $500?
I’m sorry to be so harsh, but FX is full of scammers just looking for another idiot. And you’re walking around with a target on your back. If you wish to be a trader, begin learning, babypips is a great place to start, and there are many helpful people here, and even more systems for you to try and learn on (in demo).
Also, if you intend to not use any leverage, then I suggest Oanda. They do not have free VPS, but they do allow “robot intergration”. But for a low investment without leverage, they allow you to create your own lot size. Thus allowing you to adhere to whatever risk management you decide to take. You literally can open up a position for a fraction of a penny.