I still remember the day that I attended a large Forex convention in Vancouver B.C. A number of years ago and watched the leaders of a big training company demonstrate all the reasons why they recommend Refco as the best broker. The very next week I saw the news that Refco had gone under.
Since then I have had many friends and colleagues who have lost their capital with brokers that they thought were the best choice at the time. Recently PFG bit the dust and shocked the U.S. financial world. One of the top traders in our community personally lost capital with MF Global. One of our best traders a few years ago lost $100K with an offshore broker. It has become a running joke in the professional trading world that some brokers are considered crooks.
Then there are all the other horror stories from Forex trading customers.
1. Being unable to withdraw capital when they win.
2. Some people report trading platforms freezing or having a long delay during periods of market volatility.
3. Being unable to close a trade when the market has turned is another problem.
4. Manipulating the price of execution.
5. Data feeds that actually show large spikes in price that are not on other sources of data.
7. Spread widening
8. Stop hunting
9. Brokers “trading against their customers”
A lot of these reports are from misinformed and paranoid customers who have come to believe that the brokers are causing their losses when in fact the only problem is they just don’t know when to enter and when to exit and why. But some of the reports are genuine and there is reason to have concern. If you intend to actually trade as a business of course, you want to choose wisely when you affiliate with the most important business partner you will ever have.
That’s why I continue to survey traders around the world who are now earning their living from trading, to find out what their experiences have been and what broker they recommend. The information that is coming in so far is quite surprising and extremely fascinating.
This is the name that came up as being recommended the most for this week.
Check it our for yourself here: Forex Trading Brokers