We can get a good idea about whether or not not a forex broker has had problems with its people or receives professional advice from a lawyer in the past by reading reviews and spoken or written remarks made other traders who have used the forex broker. Some traders may have posted their experiences with the broker on online discussion forums dedicated to forex.
Online Forex Brokers
In general, Try to avoid brokers that have had significant pricing and account management issues or if it routinely engages in questionable broker practices like Requoting, Excessive slippage .Front running, Stop hunting and Forbidden strategy clauses. A lot of traditional full service and discount stock brokers have been entering the Forex market.
It is quite possible that your current brokerage firm may offer Forex trading and since you already have a broker-client relationship, you may feel more comfortable. A lot of traders like to have a separate Forex broker to separate their accounts and to keep their cash allocation in balance. Forex is a leveraged market that can go up quickly and go down just as fast.
There is the temptation to move any available cash you have in your equity account to the Forex account. This will make it difficult to keep the account balance proper. The biggest reason to go with a dedicated Forex broker is the features they may offer that your current broker does not. The most important factor is to compare your current broker’s features to see if they will match what you are looking for. If you decide to use your current broker, make sure they have comparable features to dedicated brokers. Try out the platform to see if it works for you.
When searching for a Forex broker, it makes little difference where you live. The important factors remain the same. Keeping these important points in mind when searching for a Forex broker help protect you from losing your money outside of trading. Sadly, there are Forex brokers that open up shop online and are there only to take your money with little in the way of actual service in return. Forex trading is difficult enough without adding the extra burden of an unscrupulous broker to the mix.