When you are looking to find a Forex broker for yourself, what you need to understand is that most of the time, through the power of the internet, you will most likely end up with someone who is half par as a broker, and in the worst case scenario, you will find that you have ended up with a really bad broker, I just have received wind of some news down the grapevine a couple of weeks ago of someone who I knew usually – he had come to me for some advice on the Forex market – and he had chosen an online Forex broker to help him out in one of his managed accounts.
Now, when you are looking for a Forex broker and looking for one online, you need to be careful of a few things. One of them is that anyone and everyone is able to set up a Forex company of their own and build their own brokerage. All they need to do is to find a web host and make a website. What you need to do is to ensure that this is a real company and not some dud. And you can do this quite easily by doing a little low level research of your own into the various companies that you come across on a daily basis.
Oh where was I, ah yes. I had heard that this broker, through various questionable references and quotations, had managed to wipe out a $ 10, 000 bank account in a matter of days and this was down to some seemingly frenzied trading. Now when you trade, you usually limit yourself to 4 – 8 trades a day as a conservative way to make money and reduce the changes where you will be losing money. But this Forex broker encourages a 30 – 40 trading volume on several managed accounts, which meant that the odds for losses were increased in each time.
And it was not as if the advice that was being given was made of pure gold – there were holes in the ratione and this showed in the end of the trading day. One of the accounts was also set up as a day trading account, which in my knowledge, is the worst way for anyone to trade in the market for now. Investigations into the matter led that the Forex broker was actually a normal trader who had opened up his own brokerage sort of and was luring new traders with the promise of photo shopped accounts and track records. But there was no way to trace the fellow because he had jumped ship quite a while before he was discovered, running away with almost $ 50, 000 in losses and about $ 6, 000 in profits. All in all, this is actually happening on a daily basis on the internet and this is why you need to be careful as a trader in all respects of the word. If you get hoodwinked by a bad Forex broker, then it is your own fault.