FOREX Broker Complaints and Account Options
"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.
Account OptionsAll 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