just be sure to check with restrictions in your country before investing with anyone, I trade with hotforex and recently they also had to let go of canadian investments due to presure from the the canadian commission or something,. best of luck
Which Forex Broker ?
- Thread starter Hitnruntrader
- Start date
pls do check with your local regulatories and authorities, there was an issue about offshore brokers are forced to close canadian accounts due to pressure from Ontario regulatory or something (not so sure about the details) but it happened recently with the broker im trading with right now hotforex, hopefully there are still broker which are good that offers the same conditions.
Instaforex? The biggest BS broker i have ever seen.
I am glad i switched to futures and i will never get close to forex again!
No US or Canada brokers will allow you to trade with high leverage because trading turns into gambling if you use too much borrowed funds.
Max leverage I'm allowed to use at Hotforex is 1:500 but still I use only 1:100 because of high volatility
Understanding your investment style can help determine which FX broker may serve as the best forex broker for you.
Can you be more precise about this choice? Why do you think FX brokers offer different options for traders depending on their style of trading?
I believe that what he is trying to say is that if you are trading the higher timeframes and only place a few trades per week then paying a few extra pips in spread with broker X is not anything worth worrying about.
But if you are scalping for only a few pips profit, then spread becomes very important
and in that case you would perhaps choose broker Y over X.
However, our fund safety is important so I would stay clear of brokers based in exotic places.
Also very high leverage is almost always offered by brokers who have the majority of their traders on B books but I don't know if this is something that a profitable trader should worry about.
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When picking a forex brokerage firm, my tips would be to:
- check that they are regulated
- check that they have direct market access (DMA) and are not just market makers (in which case their interests will not be aligned with yours)
- do not be suckered in with low minimums or registration cash bonuses. These are both red flags.
- do not be suckered in by ultra high leverage. This is usually a sign that the brokerage is flouting the rules and is not managing its own risk well and is therefore has a higher chance of blowing up.
- do not be suckered in by extremely low commissions. This is also a red flag as sometimes it can mean that the firm is in financial trouble and desperate to attract new business. MF Global is a great example of this as it blew up in late 2011 after for many months undercutting the whole market with extremely low commission rates.
- check that they are regulated
- check that they have direct market access (DMA) and are not just market makers (in which case their interests will not be aligned with yours)
- do not be suckered in with low minimums or registration cash bonuses. These are both red flags.
- do not be suckered in by ultra high leverage. This is usually a sign that the brokerage is flouting the rules and is not managing its own risk well and is therefore has a higher chance of blowing up.
- do not be suckered in by extremely low commissions. This is also a red flag as sometimes it can mean that the firm is in financial trouble and desperate to attract new business. MF Global is a great example of this as it blew up in late 2011 after for many months undercutting the whole market with extremely low commission rates.