Why you must understand your Broker

[vicknic]

Understanding the forex broker you trade with is essential. Each broker has rules, regulations and policies. If you are not acquainted with these, you may end up fighting to get the money you have earned. In the end, you spread negative reviews all over the internet claiming that you have been played.

For example, a trader might decide to make deposit via Paypal and try to withdraw money via Skrill. In this case, your broker might not grant your request and point you in the direction of the client agreement file. Whose fault is it then?

There are many forex trading strategies, but a broker might decide to blacklist some of them. You must carefully ask all the relevant questions before trading with a broker. Maybe if all traders can understand their brokers, there won't be alot of screaming on review websites.

 

[globalfx]

Traders get frustrated when certain strategies are not allowed in a platform. What I do not understand is why brokers have to strike out some profitable strategies, high profitable ones. Does it mean that when traders make profit it hurts them?

 

[toretton]

Traders get frustrated when certain strategies are not allowed in a platform. What I do not understand is why brokers have to strike out some profitable strategies, high profitable ones. Does it mean that when traders make profit it hurts them?

not necessary... i don't think it hurts them, sometimes they just feel uncomfortable with this like traders u know. many owners of brokerage companies were traders before and the strategies they did not like as traders, they do not allow in their companies. hope u see ma point

 

[T_Hair_DFX]

Traders get frustrated when certain strategies are not allowed in a platform. What I do not understand is why brokers have to strike out some profitable strategies, high profitable ones. Does it mean that when traders make profit it hurts them?

Depending on how the brokerage firm is setup it can either hurt them directly if they are taking the other side of the trade. Or, if they are STPing the trades it can cause tensions with their liquidity providers. This is why it is important that the broker has multiple liquidity providers in order to switch from one to another so as they can meet all traders styles.

hope that helps answer your question.

All the best

Trent

 

[wisetrada]

Traders get frustrated when certain strategies are not allowed in a platform. What I do not understand is why brokers have to strike out some profitable strategies, high profitable ones. Does it mean that when traders make profit it hurts them?

I think it hurts the Market makers because they always take the other side of the trade. These types of broker trade against you. So they are not usually comfortable with your winnings.

 

[vicknic]

Traders will benefit more from the forex market if they use STP/NDD forex brokers. Such platform guarantees faster execution and direct contact with the forex market.

 

[Fxpipper]

Yup, it all comes down to communication..it does not matter if the trader uses one broker or multiple brokers, if he fails to understand what the broker is offering or how the broker works, he is bound to run into a few issues. Currently I use three brokers from traders way to FXCM and so far have had no issues with any of them. Good communication and asking the right questions plays a pivotal role in figuring out if the broker is the right one for your trading strategies..