Hello,
I’m a newbie who has had a bad experience with a broker thought to be “legit”. I’ve heard most brokers online are scams as they hang on to our money as much as possible. I’ve heard that some do pay but they stop paying once you become successful.
Any suggestions that you all could give me? I’ve heard that Nadex is good since it’s located here in the US. No offshores please (Only European or North American based)…
Thanks
I think the best way would be to trade with your local bank. But not all of them (or at all) offer forex trading.
Best choice is regulated, ECN or STP and being around 10 years in business.
PS. Big plus if they didnt had any issues with Swiss crazy day.
…and what would be these brokers that qualify?
I cant think of any. It was only MM that have been around 10+ years that didn’t get shafted from the Swiss crazy day as they made money :16:
As I know, traders could know to trust broker which has been regulated by regulation in each region of the broker. I knew only few regulation, they are : NSA, CySec, and FDA. If the broker ahs been regulated by trusted regulation then you could trade in the broker safely. It is possible to read from other trader’s testimonial but don’t read in their forum. If me, I usually trade in broker which has run its business for at least 3 years to make sure its reputation.
Check FPA ratings and skim through babypips broker section and forexfactory too. Hope they’ll give you a clue a bit. I use Hotforex, found it based on suggestions from forums I mentioned above.
For a start try to find out a bit about A-book, B-Book and Hybrid execution, understand they way of how brokers do their business. It’ll clear out a lot, searching US or EU regulated brokers are not a panacea for not being scammed or not getting legal handicap on your trading. There a lot of highly regulated swindlers as well, so if you’ll bank on regulations solely it won’t completely protect you.
Good luck in your choice.
Good advice I also prefer old brokers that are in the business for at least 8 to 10 years with minimum complaints. I said minimum because no body is perfect.
I use to hear traders say they are scam by a broker. I have not experience that, trading with profiforex . And I do not think location should matter in choice of a broker the most important thing is if the broker offers good services and its reliable.
Honestly I think most brokers will qualify. Most of the scam stories are from traders who took a bonus, did not read the terms and then could not withdraw profits. Sure there are forex brokers out there who do scam, but it is far less than you would believe if you read reviews etc.
I think you’re right. It is better if the broker has run its business for about 8-10 years to minimize the probability for the company to scam you. It is right that we couldn’t find out perfect company so don’t hope to find out company which has no complaints at all because it is impossible but we could trust the broker from its regulation (depend on broker’s region) and its experience in forex business. Don’t be attracted with broker’s promotion only.
Most of the brokers are attached with some regulating authorities but the point is that we must have acess to those regulation bodies. If I cannot access to a regulation body then what can I do if broker scam. So it is better to trade with brokers attached with banks.
Rightly said, a regulated broker with proper bank is very important, there is no point in trading in any broker who don’t have such regulation.
im not advertising at all but I know Oanda and Forex.com are legit.
Oanda has pretty good stock software, what is the best are little icons you can turn on down at the timeline toolbar that show news events in your chart and when you mouse hover they give the news importance, and forecast/result numbers.
Forex.com is bain capital and their stock has been stable for many years and they have other assets. The software is fine. Both let you use metatrader instead of their software.
It’s also a crucial point that brokers has to have segregated accounts to hold client funds to avoid similar situations to MF Global blowup (they used clients funds to cover their operational losses). Though my funds are segregated at Hotforex, I do try to regularly withdraw my profit from there and keep only the amount that I need for trading only.
I do this with linked accounts at forex.com. One is like my saving, low risk long term trade account. The other is my exposure account. Can transfer funds but it won’t overdraw if a loss.
There is risk involved in any investment online. In order to find a good broker, one should check feedback and know the regulations they are registered with. There is no perfect broker, all brokers have their con and pros. Our job as traders is to narrow down our options.
I always advice traders to look for a good broker if they do not want to loose up all their money with forex business. Before choosing a broker, make sure that you do your best to study about them properly and make sure they are regulated so you won’t sign up with the wrong broker that will scam you.
You are right sir, we must be aware about this scam of broker. I’ve many times having trouble with some brokers. Then I change broker and start making money in Liteforex and fxpro.
I trade with Activtrades, and they seem pretty solid. Never a hitch, good support, and like a zillion languages. Even if you don’t use them, they have a bunch of pretty good tutorials on youtube.
there are good brokers out there, sugesting wont be enough but rather try to go to famuse popular review sites like forexpeacearmy and check their top list, pros and cons and do some research with each broker from your type 5. and best of luck,