I’m still “auditioning” brokers, and read the following from Oanda’s Risk Warning page:
" It is encouraged that you employ such risk-reducing strategies as ‘stop-loss’ or ‘stop-limit’ orders, but you should be aware that market conditions may make it impossible to close out your order at the level specified."
What!!! In all my research I never before read that a stop-order may not work! How likely is that to happen? Any INFORMED thoughts or comments would be greatly appreciated!
“Your Margin Account with OANDA is not insured under any state or federal insurance program, or by any other entity. In the event OANDA should become insolvent or file for protection under the bankruptcy laws, it is possible that you would lose the entire amount in your Margin Account.”
Funds are not insured with a giant like Oanda??? Is there a source I can go to to find out which brokers are insured? Any info on insured brokers that are good for scalping?
There are many forex brokers, but not all were created equal. When it comes to your money, you want to be certain that your Broker meets your expectations. It is your right to ask as many questions as you need to feel comfortable about your venture and if you don’t get the answers your want, you should consider finding another Broker.
There is nothing extraordinary about Oanda’s statements —
(1) regarding stop-loss orders, or
(2) regarding the uninsured status of customer funds.
• Oanda’s statement regarding stop-loss orders applies to every legitimate forex broker [I][U]in the world.[/U][/I]
For comparison, here is FXCM’s statement on the execution of stop-loss orders. This is from the FXCM Client Agreement, page 13. (Evidently, FXCM copy-protects this document. So, I had to image the paragraph in question, in order to post it here.)
• Oanda’s statement regarding uninsured customer funds applies to every forex broker [I][U]in the U.S.[/U][/I]
Again, for comparison, here is FXCM’s statement on this subject (from FXCM Client Agreement, page 8).
Can happen all the time with every SL to a minor degree (i.e. a few pipettes). January 15th of this year was a very recent example of an event which left many traders with a negative balance and some brokers bankrupt. Was unusual, but happened. Your broker is not a bank so funds are not insured and if all those things really scare you away then you should simply stay away. Maybe you need to do more research and then decide if trading is something you would like to pursue.
Broker in forex is company which will hold your money as investment although you don’t belong to it in order to gain profit, but broker will matter to your account. Some brokers could become scam and take all of your money, so you should choose the right broker and you can trade with more relax. Some brokers can process your withdrawal request for long time although you have fulfilled the system especially if the amount of your withdrawal was big enough. So, you should choose the right broker to trade so you can trade well without too much worry. Usually, regulation and reputation of the brokers would become consideration to choose the right broker to minimize the risk in trading with that broker.
The CHF black swan in mid January is a perfect example of brokers being unable to guarantee stops, take a look at the thread on here about it.
Some brokers guarantee your funds will not go negative, fxpro for one.
Risk is a thing that a trader has to manage . Broker give you good offers low spread using low risk but warns too that they will not give guaranteed profit. You have to choose reasonable risk taking strategy to make your funds secure from high loss.
risk in general is everywhere, in trading, in brokers, in basic crossing the street on a sunday afternoon, there are risk, and no such thing as a 100% guarantee… thats how i see it anyway it makes it easier, than trading with the fear of something going wrong.
