How to tell when it is time to leave your Forex broker

02:29 Finance 0 Comments

The wise and prudent thing to do for first-time inexperienced traders is to select a broker that offers a demo account and start trading in demo mode, enabling them to get a clear understanding of the basics of trading and also get a good command of how to trade effectively on the particular platform provided by their broker, without losing any real money.

It's a critical step in your trading endeavor to realize when the time is correct and ripe to move from your trial account to a live, supported version and start trading for real, so let us try to help you decide when that time will be. 

Before exchanging with real capital, the most critical hurdle you need to cross is having quite specifically devised the trading plan you would be pursuing in your mind. This involves identifying the entry and exit points for each transaction, recognizing how the technical analysis can be implemented, considering the amount of exchange for each transaction, and tracking each transaction's maximum risk. You should also consider if they are using robust trading platforms such MT4 or MT5. If all of this doesn't make much sense to you, quit here since you're not prepared to move to a real trading account.

Ideally, even whether you have picked a strong trader, that typically uses an MT4 or MT5 trading platform, whether you are dealing on a sample account or a regular one, charts, price, and order execution pace should be the same. However, what is entirely different is your feelings, psychology, and tension levels, because both gains and expenses are actual income in a real account. This is why your judgment can be distorted by the rush or fear of the moment and discourage you from successfully and accurately pursuing your plan.

In a nutshell, then, before you have at least spent a few days trading in prototype mode, after which you have settled on your trading plan, checked that it functions, and are thoroughly assured that you know what you are doing, do not move from a demo account to a real one. When agreeing to make a move, it is equally crucial that the funds you can finance your trading account for the first time are not your last and that your assets are not exhausted by the sum invested. In reality, it's better if the sum is negligible to you. You won't mind losing it, so it's possible that if you place all your eggs in one basket, fear of losing that money will interfere with your good judgment. You will yield to the real-time trading strain, potentially unable to close an unprofitable transaction on time.

How to act when in conflict with your broker

A dispute may probably occur between you at one stage or another, whether it is over a price slippage, an order that was not implemented or not executed on time, or any sort of hidden cost that you were paying that was not specified in the original terms, no matter how prudently you chose your forex broker. You shouldn't worry when this occurs, but rather obey these necessary steps:

To substantiate the case, gather all the supporting records and documentation and specifically draft a formal submission outlining what occurred and what it is you are contesting. Using an approved messaging channel to reach the broker by writing a ticket in your account or emailing the broker, then wait for an official response. If the answer is not forthcoming, or if you are not pleased with the response you gave, or perhaps more so if the reaction indicates that the broker is incorrect, but does not offer to take active steps to remedy the problem, then you have two choices. If your broker is regulated, the substantiated concern may be forwarded to the appropriate regulatory authority.

Often, even informing your broker that you plan to file an official complaint with the watchdog is enough to attract the broker's attention and often gets things resolved without further action being needed, as brokers do not want to get into trouble with regulators.

Your safest bet, however, is to increase the pressure by calling the support team if the broker is unregulated, as it is more effective when talking to an actual person who is required to give some real-time response and warn them that you will be vocal about their wrongdoing in all available avenues, including review sites, trader chat rooms, and social media. Frequently, this is often enough to push them to take mutually acceptable steps to settle the dispute.

As we near the conclusion of this post, I can already sense you pondering, "Who the hell is the best broker?" You're in for a surprise if you are still waiting for a straight, single answer to this question! The basic explanation why no response is given is that no one broker is the strongest. The right broker with your particular situation might well not be the next person's best broker. So the issue may not be who's the best broker, but who's the best broker for me instead?

It is also worth considering that most forex brokers have enriched their spectrum of services over time to reach well beyond mere brokerage services while attempting to offer the right answer. The explanation for this is clearly because the online retail forex environment is so inundated and so highly competitive that brokers need to do their best to enrich and distinguish their products to stand out and stay competitive and appropriate.

Many brokers have opted to invest extensively in forex trading preparation and education within this system of distinction, thereby placing a wide variety of content at their customers' disposal, in the form of ebooks, webinars, and even one on one training sessions. Such facilities are of great value for inexperienced traders who need to understand the fundamentals and more experienced traders because one cannot know anything like the more trained and equipped you are, the better results you will produce.

In addition to social trading, many brokers have also introduced the supply of trading signals into their central service to their consumers while still having accessible PAMM accounts that you can exchange without ever performing the trading yourself. PAMM stands for the module for percentage distribution control. You distribute the funds proportionally into account to eligible traders and/or investment managers who perform the actual selling on your behalf.

Top-notch brokers often supply their consumers with a designated account manager, but this is a right reserved only for those able to invest significant sums in invested funds. It is perfect for inexperienced traders and experienced traders to have a personal account manager give you trading tips and still provide guidance since they will learn fresh insights and viewpoints to move their trading to the next stage. The above-listed list of additional services offered by forex brokers is not comprehensive but indicative, serving the function of highlighting that when selecting your broker, there is so much more to remember. To put it plainly, you can find the broker whose deal as a whole fits you more. To discern who is the right broker for you better meets your requirements and matches your degree of experience, which is more likely to prepare you better to be a profitable trader and encourages you with enough confidence to trust them with your funds.