FOREX Broker Complaints and Account Options

Accept this idea and work backward:

"The broker is always right."

Before you open a live account, inquire as to the mechanism by which the broker attempts to resolve issues and complaints internally. Believe me, it is usually much cheaper for them to resolve a small complaint internally, despite having legions of lawyers in tow.

Be sure your issue is a legitimate one and not a FOREX fact of life. If you received a horrific fill right after a news release -- shame on you. That is a FOREX fact of life. If a broker often requotes -- gives you a different, worse fill from the one showing on your platform -- that is a legitimate complaint.

Keep records of all communications with your broker -- e-mail, telephone, correspondence.
If an error occurs on your platform, take a screen shot or SnagIt image of it. If a website page has critical information -- make a copy of it. Web pages change frequently. You cannot engage in any relationship successfully if you go in with a confrontational attitude and look for trouble. But you can -- and should -- be cautious in new ones, mind your Ps and Qs, dot your Is and cross your Ts.

Account Options

All brokers offer a variety of account types typically broken down by type and size.

You may of course open an individual account, a partnership account, a corporate account or a trust account. Of the latter, unless you are a major player, personal guarantees will be required.

More of this and the actual step-by-step of opening an account is the topic of How to Open a FOREX Account.

Most brokers offer account minimums of 10,000-lot size, or 0.1. This is a mini-account. A few still offer micro-accounts, 1,000-lot size, or 0.01. A standard account is 100,000-lot size, or 1.0.

Tip: Be sure you know what the decimal reading is for your broker. You do not want to be like my student, Ray, who thought he was nibbling at 10,000 -- but was trading 100,000!

The process, as I discuss in Setting Up Shop, is to move gradually from demo to micro or mini to full lots.

Some brokers have multiple levels of the same account. The difference: the more you trade and the larger your account size, the more liquidity providers you have access to and the lower your costs.
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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