How to Pick the Right FOREX Broker-Dealer for You?
It is critical that the prospective trader, especially the beginner, perform due diligence on a broker-dealer thoroughly before depositing money and making a trade. Once you have selected a trading platform to your liking, you can begin narrowing the field. Begin your due diligence with a study of the reviews, and then select several demo accounts to download. The best reviews are at www.forexpeacearmy.com and www.goforex.net. Keep in mind four issues when reading reviews: 1) Unhappy campers tend to be more vocal than happy campers.
The sheer volume of trade for the larger firms will result in a higher number of complaints. 2) A large sample (25 reviews) is probably more reliable than a small sample (5 reviews). 3) Note the dates on the reviews. If you see complaints about the same problem over several months, that is probably not good. If a specific complaint is mentioned two or three times, and then disappears, that is probably good. 4) To make the sample more meaningful, throw out both the best review and the worst review. The former is probably a shill; the latter, sour grapes. The recommended process, again, for getting started is:
TIP: Generally, increase your lot size as you achieve trading success. Specifically, I recommend to my students: 1) If your account doubles, increase lot size fifty percent and 2) But thereafter, wait for a small losing streak before adding funds. In this manner you increase the odds of your first trades in larger lots of being profitable onesâ
By Michael Duane Archer