Quest For The Best Forex Broker
Let’s face the reality. Everybody is in business to make money, including the brokers. There are mainly two types of brokers. Dealing desk and non dealing desk. An important fact to know when you trade is, in a dealing desk environment there are hardly any win-win situation. So called top forex brokers may even be trading against you.
Now the question arises, how to find genuine non dealing desk brokers? Simple. Go find ECN brokers. Although it sounds simple, there are few considerations surrounding it too. e.g. ECN environment may not be offered with smaller accounts such as ‘micro’ or even with ‘standard’ accounts below a certain deposit margin. So if you want a real ECN broker, low minimum deposits may not be an option.
It’s also true that some brokers not only may trade against you, but also send fake spikes and dips in rates to terminate your open profitable trades. This is a dirty tactic utilized by few so called “best forex brokers” in order to capitalize on the unsuspecting novice traders’ innocence.
Forex is the most dynamic financial market in the world. Its so dynamic that there are no central regulating body to endorse rates and tick data. While this very phenomena has been the back bone of forex, some brokers misuse it against their clients to manipulate market conditions and trends, simply because the average trader cannot verify the authenticity of the chart data provided by the broker. Do you still think yours is the best forex broker in the market?
Real time results in identical demo accounts and live accounts of the same broker may highly differ. I personally did not want to know why. But think of how much control a broker has over traders’ accounts. Another simple experiment is that you cannot simply trade using charts and data from a different broker, unless they are genuinely non dealing desk or ECN brokers. Whether you are veteran trader or just starting your forex career, a thorough research about how top forex brokers operate and their genuineness are on the cards.
Find out the important characteristics of best forex brokers. The most important part of trading forex is not the trading strategy but a balance between all components involved in trading decisions. Even if you do have a holy grail of a system, it may be useless if you don’t have best forex broker to go along with it.