Hi everybody. I’ve currently got a demo account with FxPro. I’m a bit worried about putting money in an account with them as they are based in Cyprus. I thought I’d have a look around and look at some brokerage reviews before I put any money into a live account. The thing is, every broker I’ve looked into, even the ones that might get five stars on a site, always have lots of people commenting on things like how the broker cancelled profitable trades or won’t transfer their profits to their bank accounts, take profits not triggering and a load of other worrying things. Every one I’ve looked at has people saying stay away from this broker. How do I find a decent one? Thanks
Look for evidence that the person posting uses a trading style like yours. Scalpers’ reasons for panning a broker may be irrelevant for you, if you are a position trader - and, vice-versa. Complaints (or praises) that don’t articulate that information are useless, and should be ignored. But, before doing that, I recommend making a list of your primary (‘must-haves’) and secondary (preferred) features you want your broker to make available to you. Then, do a thorough search, including telephone contact with the brokers, directly, to get answers to your questions. Contrary to what some may think, the broker rader relationship is a partnership - where respect and fair treatment of each makes for long-term profits for both parties. So, if you do your ‘due-diligence’ and are very selective; you will find a good match for your trading style. PS - My primary requirement is that the broker be located in a country whose economy is in good shape. (I find that info online, not from the broker.)
Australian and UK brokers, don’t look outside of it, there is nothing left for you out there. AVoid US brokers all costs.
Thanks for the advice. Can you recommend a good uk based broker? A review I read on FxPro said that your trades don’t go through a dealing desk and they don’t trade against you, not sure if you know anything about that? Like I said though, the fact that they are based in Cyprus puts me off.
A review I read about the brokers FxPro that is
two questions.
1 - how much money do you intend on depositing? some brokers have a minimum requirement, so knowing what you have available can help us guide you to the right one.
2 - do you care what platform type is used? do you HAVE TO HAVE the MT4 platform, absolutely? or are you ok with other platforms and are willing / able to learn them as needed, and won’t feel left out if everyone else is using MT4? peer-pressure, sort of.
Hi. Thinking of depositing about £500. I have been learning on MT4, so would prefer to stay with that I think
Totally agree with you on that part. 100%! I would not rule out brokers outside the UK or Australia.
You can you scalp with Profiforex then? I’ve read some negative reviews saying profit from trades under 1 minute have been removed from accounts for breaching their rules. Also they are unregulated and based in the Seychelles according to the reviews I’ve read, that puts me off.
Choosing the right broker doesn’t have to be this hard. Seriously, just stick with regulated, well-known and established brokers like FXCM, Pepperstone, Alpari, Hotforex or Dukascopy… where you have liquidity and strength in numbers.
There are dozens of traders right here on this board who trade with them. Plus there are broker reps (like FXCM) who can help you in case of problems.
Forex is risky as it is. The last thing you need is to deposit money with brokers in a swindler’s paradise like British Virgin Islands or Seychelles where safety of funds is always a concern (irrespective of what the broker there might say about “segregated funds”). There’s also the safety of documents you provide these brokers when you open a live account.
Just think about it… Some of these “island-based” brokers are nothing but virtual offices and fronts for Russian brokers. Besides, there’s the issue of regulation which varies across territories and region.
Here’s what Babypips itself says about the importance of regulation:
Source: How to Choose a Forex Broker - BabyPips.com
Bottomline – Do your own due diligence and decide where you want to invest your money.
But don’t get stuck trying to find the “perfect” broker because they don’t exist. You just need a “good” broker who lets you trade without manipulating the platform, hunting your stops or stalling your legit profits.
Remember that some brokers often make rules to benefit “the house” and not the trader. So create a check list of all the must-haves regarding a broker’s authenticity and go forth confidently.
Are you suggesting that every Russian business is a scam? I can think of two Russian brokers who are very legit brokers and have a huge amount of happy clients so I would not single out a country the way you have.
I do agree that every trader should know what they seek and find a broker which is good for them. One trader may like a broker while another one will hate the same one. Reviews are worthless and regulation is not the holy grail. I always recommend traders should open a live account with a broker they feel comfortable with regardless of what others say and find out how they are treated.
Russia figures quite prominently in news stories, business magazines and economic/political journals among the list of “fraud zone” countries with a high level of business and financial risk.
(Most people already know about the Russian bride scams that continue to proliferate the internet, so business fraud is just one step away… Not to mention the multitude of hackers, viruses and other unwholesome activities originating from that country and region).
Trace back the history of some Russian forex trading companies and you’ll see their origins in HYIP (high yield investment program) and similar junk schemes.
Giving Russia company are Ukraine, Nigeria and Ghana.
So yeah, due diligence and extreme caution are more than required, specially when you’re dealing with FX brokers who use virtual offices to lure western clients.
The context, risk, money and documentation involved while opening a live account make this extra effort all the more important.
I am happy with FxPro, the brokers I’ve got my demo account with, but like I said the fact that they are based in Cyprus puts me off. Think I will look at Alpari then, give their demo account a go
I wouldn’t worry too much about FxPro since they are well capitalized (the Cyprus issue needs to be seen in the larger perspective of where your broker’s banks are located)… Besides, FxPro has a UK office too (FxPro UK, regulated by FSA).
One more thing I’d like to say (suggestions based on personal experience) – [U]Try trading the higher TFs[/U] and [U]avoid scalping as far as possible[/U]. This will benefit you in the long run.
Try a few different brokers. Start small and slowly increase your equity as you become comfortable with your broker. Good luck!
Well, we can agree to disagree on that. As I said I can think of at least two Russian brokers which are great brokerages to do business with and I can only recommend them. The comparisons you made to Ghana and Nigeria are totally out of context. In the end each trader needs to decide where they want to do business.
I had the same issue but i called up and found out there headquarters are based in the UK and accounts are dealt with in the UK.
Even i was facing the same problem but after meeting “SAXfx” my problems were solved. They are very genuine, and trustworthy. their advantage is they charge “zero” spreads and high leverage i.e 1:600 you must give it a try…
High leverage is terrible for every trade and especially for new traders. I would not recommend anyone to trade with 1:600.
About brokers canceling profitable trades; sometimes, when a trader uses a strategy that is not allowed by a broker, the broker have the right to cancel all profits made from such methods. Finding a good broker is not always easy. I had a hard time myself. Even when I asked for recommendations, people were telling me UK brokers, AU brokers and so many more. I checked out some of them, but I was not pleased. A broker is decent when it offers low spread, low commission fee and little or no restrictions. Also, a decent broker will not hide any charge in their user agreement, they have to be transparent enough. There are some decent brokers out there. I have been using Profiforex for some time now. When I first heard about them, I was skeptical, but their transparency calmed my nerves and I have been withdrawing my profits successfully. My advice for you is this; when looking for a broker, remember that not all that glitters are gold.
I also was worried about this too with everything going on in Cyprus, but I called FxPro up and was told the following that there HQ is based in the UK and FxPro does not deposit it’s client’s funds in Cypriot banks. Client money is held at either Barclays Bank in London, Royal Bank of Scotland in London or Credit Suisse.
The Following link shows the Policy on Client funds: Safety of Client Funds | Forex Trading Accounts | Security & Transparency
The UK HQ is also FCA Regulated. Hope this helps.