Forex Swing Trading: The Ultimate Guide + PDF Cheat Sheet

Some brokers will require more paperwork than others, depending especially on the country they are in. Make sure that your chosen broker has a good customer service team — if a broker does not, this will indicate that they are a cheat. Meanwhile all other pricing does not make the same move. You may have just opened a big position and then your internet went down. I work a very small real account but I hope to increase it in the future. Brokers are not perfect, and you should choose a broker that could easily be contacted when problems occur and who responds quickly to your needs. Advice needed, Brokers must know who traded in my accounts through IP addresses or other methods etc.

Making money through forex trading needs 3 requirements to be met at the same time: Techniques Proper mental situation Proper brokerage service We have to talk about all of these 3 requirements on a regular basis. Focusing only on the techniques, or giving you the forex signals whenever there is a trade setup doesn’t make [ ].

Comments navigation

This occurs when a position is executed away from the average spread. This usually happens during major new releases because of increased market volatility.

Some brokers protect their clients from slippage by effectively handling news releases, others do not. Fixed spreads may protect you from this unwanted cost.

Although fixed spreads are slightly higher than the average spread, your trades will be filled at the desired price even if the market volatility increases. There are certain brokers that cheat their clients by manipulating the bid and ask spread. Typical spreads of major currency pairs among regulated brokers on normal market conditions ranges from 1 — 3 pips, but may reach as high as 6 pips during highly volatile market.

Scammers would have spreads around 4 to 8 pips on major currency pairs on normal market conditions, and may reach as high as 10 pips or more during high volatility. Spreads will increase naturally during high-impact news events, and especially when market volume is low end of day trading times for example. Brokers know where their clients place their stops. Suppose you opened a long position at 1. Unfortunately, the trade initially went against you and almost hit your stop loss price. However, your position was closed, but the market did not even touch your exact stop loss price 1.

Then the market begins to take off to your desired direction. There are still brokers that claim to be regulated but practice spread manipulation and stop hunting, especially during times of high volatility. The speed at which your orders get filled is very important and it is mandatory that brokers should fill orders with the best possible price.

Your orders should be executed at that price, or within micro-pips of the price. Reputable Forex brokers offer a hassle-free method to deposit funds and withdraw earnings. Whatever methods they use, brokers have no reason to deny withdrawal of your funds and profits because they only hold your funds to facilitate trading.

Some brokers will require more paperwork than others, depending especially on the country they are in.

Almost all brokers offer two or more account types, which depends on the size of lots traded. The most common type of accounts are micro-accounts, mini-accounts, and standard accounts. The micro and mini-account allows you to trade with a very low minimum initial capital, while the standard account requires a higher minimum capital.

Minimum capital for each account type varies from one broker to another. New forex traders tend to choose brokers with higher leverages. Although higher leverage can lead to bigger profits, it also magnifies your losses in exactly the same way as your gains. A relatively small movement against your position can result to an immediate and large loss which can be greater than your initial investment capital.

Traders who get attracted by high leverage end up benefiting the broker and harming themselves. If the market moves against your position, margin levels are increased and you may be called upon to deposit additional funds into your account to maintain your position.

The final aspect in choosing a forex broker is reputation. Only a few brokers have well deserved reputations and are loved by their clients, while some brokers are despised by many. Disreputable brokers often use high spreads and slippage to prevent huge losses. Others cancel the trade if it turns against the broker. The moment your profit history becomes consistent, dishonest brokers do whatever they can do to stop you from gaining more profits through them.

The only way to protect your investments and money is to keep and an open mind and make smart decisions. You may join up with a bad broker from time to time, but just try and get your money back if they are doing underhanded things and research better the next time by visiting sites like the broke review page of FPA: But do not just stop with this one site.

Research and read all that you can about all the brokers you researching. Try to find out the truth about them and when you do select a broker make sure you start with a small deposit at first. You may even try to withdraw profits on the account first before deciding to keep more money with them.

A broker will always be tested at the point of withdrawing profits. Contrary to the beliefs of most losing traders, Forex brokers are not designed to make retail traders lose money. Forex brokers want to do business with you, and not to lose your trading business. If you lose all your money in trading, they too will lose clients. But then again, this is not true of all brokers. Although most brokers that are regulated by financial authorities conduct business ethically, some brokers usually unregulated only wants your money rather than seeing you succeed in the trading business.

As a general rule, a broker will only help you when your interests are aligned with theirs. A broker who contacts you many times in order to convince you to deposit money or open an account with them, is a sign that the broker only wants your money, not to help you succeed in your trading career. The best criteria are the size of the company financial stability , speed of their platform and as well as their credibility and honesty.

Also, security of your funds and as well as the assurance that you are in good hands are the most important considerations. One of the best places to start when looking for a good broker is a review site like ForexPeaceArmy. They have some great reviews here on this site from traders just like you.

You can find some of the answers online with their websites but otherwise you can get on with their live support or call them on the phone to ask these questions. Make sure that you get solid answers, not just wishy-washy ones. And this one really looks very useful. Broker Comparison Guide should really help you with your decision when choosing a broker. Trading directly with the exchange market and avoiding the intervention of the Forex broker on the trading process is nearly impossible for retail traders.

Brokers act as mediator between the interbank market and retail market, in return for a commission. These two major categories of brokers conduct business oppositely, but no type of broker is better than the other because it all depend on your trading strategy and type of trader you are.

Many brokers help their clients succeed, while some brokers are setup to make traders fail. The choice of broker you make will influence your ability to make profits month by month. Make sure that you trade with the broker that you prefer the most. Giving your time and effort into investigating the factors outlined above can save you from much heartache and grief. No broker is perfect for every trader, but by considering the key factors on choosing the right broker, the chances of your trading success can increase substantially.

Do you have a good broker? Share it here if you think that others would benefit from it. I am also a Forex trader, a programmer, an entrepreneur, and the founder of ea-coder. I have created two of the most popular trade copiers and other trading tools for MT4 that are already used world wide by hundreds of currency traders.

As usual, very comprehensive and educational article that every new trader should read. Having been trading for quite a few years now, I have seen some very suspicious activities with various brokers, including some of the better known ones.

I do feel sorry for my US trading buddies though as their govt treats them all like little kids, with all their restrictions in place. Just too risky for my liking. Stick with the more popular better known brokers that have been around for a few years also.

Not sure about your overnight rollover interest calculation, as I always seem to get charged more than I earn when trading the same pair in opposite directions with the same position size. I think it is a money spinner for brokers. Thanks for the article Rimantas. Jim, I am glad you like it. There is not enough transparence in their calculation. Moreover, you end up paying higher interest to hold a spot pair overnight than an equivalent futures contract. Overall, I prefer futures to spot rates.

Robert, glad you like this information. Interest rates can be mysterious for sure. I agree with you. If you are getting close to a margin call they will delay processing your deposit to cover the call. This is a nasty trick, I experienced it before my own eyes. They waited for my margin call and stop out, then appx seconds later my funds went in. Needless to say I no longer trade this way.

I also used to be quite common for brokers to change your leverage during high volutiliy to cause margin calls. Do you ever whatch the market moved against you immediately after placing your trade? Meanwhile all other pricing does not make the same move. Conway, those are golden stories.

I really love reading them and it is so good to learn about them. The one with oil positions is the funniest. That is a great snippet of news about broker tricks.. Can you let us know which Broker tricked you which allowed you to get ASIC to help as I have also been relieved of all my funds by a broker in AU and would be interested in knowing who did this to you?

Hi Garry, Although it would be easy for me to name the 2 brokers who tried to scam me, it would serve no purpose in helping you in your situation, indeed you could even be involved in broking yourself and looking to getting your own back on me for naming fraudulent services.

If you have actually encountered a problem with a broker which you think is carrying out fraudulent practices, you need evidence by way of screen shots and statements and any other hard copy details which clearly show corrupt activity.

Your evidence must in most cases condradict the brokers P. Hearsay verbal comment is not evidence. They usually take 30 days to assign you a case officer, it is not a fast process, but if you have been done wrong like I had, you stad firm and follow through providing logical honest replies to all their answers with evidence.

When you do make a complaint it gets recorded against the broker, so they want to settle as well. Usually as soon as a case officer gets involved, the broker will want to discuss the matter with you and settle without 3rd party involvement. I was fortunate in one case to have the details directly on the screen in front of me. I took screen shots showing trading disabled on one chart but activ on others, showing all my open positions on the chart and showing live activity taking place, then backed up with time captured statements.

I even took a copy of their P. ASIC is just as easy online: Here is a snippet from one PDS, which are even more full of catches to clear the broker of any wrong doing while ripping you off.

TF Global may at an time without Notice to the Client suspend, withdraw or deny access to the Online Platform for any reason including but not limited to security, quality of service, failure by Client to pay and amount when due or breach by the Client of any provision of this Agreement. I had deposited funds in a new account and had started to talk with the account manager Alan Levine. By the time that I logged on in China I had most of my account wiped out. I will never forget that.

I reported it to the police, but nothing has happened so far. Leaves a bad taste in your mouth. John, that is quite a story. I never though that this could happen when an account manager working for the broker is trading your account.

Thanks for sharing and hope your future investments will be ma success. Without the real transactions, the client is actually betting against the bucket shop operators also known as bucketeers. This is another dangerous type of broker strategy that is both dishonest and illegal in most countries. Distinguish swindling brokers from honest ones The following pointers help you to distinguish swindling brokers from honest ones.

These are just some ideas on what to look for in the broker you are selecting. Some of these you will be able to research on your own and some of these are not so easy to identify. Security The first and foremost distinction of a trustworthy broker from the fraudulent ones is the high level of security. You should choose a broker that is registered with a regulatory agency. Below is a list of countries with their corresponding regulatory agencies that checks the credibility of the Forex broker.

To be registered, the broker has to pass the screening done by the regulatory agency and comply with the standards and regulations. Because broker accounts are not insured, there is a very little recourse for the individual retail trader if the broker goes bankrupt.

You have to study the company in general terms: This is not the easiest thing to do, however, and once again you are back to reading online reviews and researching whatever info you can find online. However, not all countries have the same regulatory policies and requirements when it comes to financial registration. Smaller Forex brokers can be hard to assess and there are no very strict regulations for Forex brokers in other countries and capital requirements are not closely monitored.

Brokers in major economies such US, UK, Australia and Europe have more mature system set to regulate financial companies. And even this, however, is not enough to stop some brokers from acting dishonestly. There was a broker in the United States that broke many laws and was fined several million dollars for these practices.

Many traders were burned to never see their money again, even though the company was caught. Therefore, it is very important for any trader or investor to choose a Forex broker that based in a country where their activities are closely monitored by a regulatory agency.

K, Australia and Hong Kong. Trading platform reliability The MetaTrader trading platform is commonly used by most forex brokers, which has hundreds of custom-made indicators and templates for every trading strategy. Other brokers have more powerful custom trading platforms. The trading platform that suits you best is critical. The reliability should be more of a concern than how the platform looks and feels.

The platform should not crash or freeze during important economic news or events. Placing and closing an order should be done immediately with just one or two mouse clicks. One-click management of open trades and stop-loss, limit and other types of orders are other criteria that a trader may take into consideration. The overall navigation of the trading platform must be user-friendly.

If there are additional charting tools, they should be very easy to access and apply. Capitalization A broker must comply with the minimum capitalization level required by the regulatory authority.

The tightening of minimum capitalization in the US drove out Forex brokers that were too weak to acquire additional working capital. Brokers that are unable to comply moved their U. Switzerland has set the minimum to 20 Million Swiss Francs. The better capitalized a broker, the more credible relationship it can establish with their liquidity providers.

This simply means they can acquire more competitive pricing from the interbank market for their firm as well as for their clients. Broker type Understanding how your broker conducts business according to the model they use is very important. There are currently a few different types of broker companies to trade with. Dealing desk and Non-dealing desk brokers conduct business oppositely, but no type of broker is better than the other because it all depends on your trading strategy and the type of trader you are.

Generally, scalpers and day traders prefer tighter spreads because the market needs less ground to cover the transaction costs. Position traders and longer term swing traders prefer to have wider spreads and pay no commissions since spreads tend to be insignificant over a longer period of time.

Customer support Customer service and support is incredibly important for any type of business, and Forex brokers are not exempted. Brokers are not perfect, and you should choose a broker that could easily be contacted when problems occur and who responds quickly to your needs.

As you probably know, the Forex market is open hours a day, so ideally, your broker should offer client support at any time. Live chat and phone support is the best medium to contact the help desk rather than email.

While trading, you may experience technical problems regarding your platform, trade orders, and other broker-related concerns. You may have just opened a big position and then your internet went down. You may need to resolve this quickly by calling to your broker for help. The way they respond to your concerns can be a key in gauging the credibility of your broker. If this it the case for you then you may want to research another broker.

Transaction costs and commission structures The Forex market has many unique features that many brokers use to entice traders to open a live account with them. Some promise no regulatory fees and exchange fees, others present no data fees, and most common to all, no commissions.

However, no matter what type of Forex trader you are, you are always subjected to transaction cost. Every time you enter a trade, you are always required to pay for either the price spread or a commission. Some brokers just charge the spread, others charge commissions per transaction made, while other brokers charge you both. The lower the spread, the greater the hypothetical profit a trader can make.

Different brokers charge different number of spread pips. However, paying a 10 pip spread on major currency pairs is a sign that there is something odd with the broker. Most brokers present the lowest spread they can offer because traders have a higher chance of profiting with lower spreads.

You may choose the broker with the most affordable and cheapest spread. However, you have to balance broker reliability and low transaction costs. Choosing the broker with the lowest spread is important, but it should not override the most important factors in choosing a broker. A competitive spread is useless if the other factors are poor.

Depending on the broker and account type they offer, there are three commission structures used by brokers: Spread also varies depending on the financial instrument that you trade and volatility of the market. Most brokers charge a 2-pip spread in a less volatile market. However, if the volatility increases, the spread may also increase, which means higher transaction cost for variable spread accounts.

Also, spreads between different currency pairs may change as the liquidity level of that certain currency pair changes. Every time you enter a trade, you will always start with a negative profit even if the price moved in the positive direction. The price has to change enough in order to cover the trading cost, the spread.

Some forex brokers will publish their spreads live on their website. Technically speaking a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and trades for his or her own account. Many pepople want to know. I very much doubt that only MetaTrader4 based brokers have this type of software installed on their trade server.

When they say that they have no dealing desk they really mean it, BUT what they really mean is that they have no HUMAN operated dealing desk, and instead they use software dealing desk applications such as the one you see in the screenshots here. Experienced trades already know the games dealing desk forex brokers play so this post is mainly geared towards beginning traders. Having said that my advice is this:. Do your research before you open an account with any broker.

It may also be helpful to ask them if they use virtual dealing desk software. Ask them to send you a written statement saying that they do not.

They will target you and incrementally erode your account balance using their dirty tricks. Practice in a demo account until you are consistently profitable. When you are then I suggest you look to open an account with an ECN broker. That about does it for this post. If you wish to discuss this topic you can either visit the Forex Nirvana forum my own forum or the forex factory forum thread. I heard MB trading will make meta trader but if MBT use metatrader i afraid meta is easy to give a plugin or software than other platform.

Thank you so much for the heads up. How does one know if they have been cheated? I demoed an account full time at FXCM for 7 months. I started trading live and that is when the bank credit crisis happened and I got wiped out in less than a month. I didnt run stops but would hedge in the opposite direction. I have never felt so defeated in my entire life.

Then I read articles and threads like yours Alan, and I wonder if I was cheated? Or was it just a bad time to get in. And it doesnt make sence to me. Why would a broker play games to wipe you out sure a lot of money upfront , when he could probably make a lot more in the long run if the trader is allowed to keep buying and selling.

And if successfull, the trader will be increasing the number of trades as his account builds up. I wrote the NFA in regards to this subject and they told me to call in to a certain department. How does one detect foul play on the part of the broker?

Terry, I can answer your questions. You can find out all about ECNs on the Internet by searching. That being said, there are reputable brokers out there, not everyone is a crook! Sorry you got wiped out but take heart, many other people have been wiped out for much much more than you lost and have bounced back and become successful. I would suggest that you practice on the demo account until you are extremely competent and try again. You transfer the funds to the Broker of choice.

You have effectively seen your money leave your posession and handed the posession of the money over to the Broker…. You wave goodbye to your cash, as it turns the corner and waves goodbye to you, and it rounds the corner….

See, at that point when you handed your cash over, you exchanged it for nothing more than digital data on a computer screen. Your broker supposedly makes this as good as cash true? A game that is computer enhanced to make you seem like you are winning and losing, but eventually wipes you out. Then something strange started happening… buy stops and sell stops that i had set were getting hit when the price was nowhere near…. In other words it opened me up with a built-in 40 pip loss.

In other words, i can subsidize your account, and never place your money in the market… I just keep it all.

ඔබට නොදැනෙන්න ඔබෙන් හොරකන් කරන Forex Brokers ලගේ කෙරුවාව.

A forex broker can either be your best friend or your worst enemy. Avoid getting scammed by a bad broker. Learn what dirty or even legal tricks brokers can use against you. Forex Blog First-hand Forex trading experience and information about foreign exchange market that will be useful to traders Subscribe to get daily updates directly to your email inbox. Jan 23,  · 6 Ways Forex Brokers Cheat You Commercial Content. Making money through forex trading needs 3 requirements to be met at the same time.