When you read a Forex blog or watch a Forex forum, you can see that there are a lot of people who are more than happy to offer advice, and a lot of them are eager to tell you how much they make from Forex trading. Many of them would like to talk about their earnings and how they can earn more if only they work hard enough. While it is true that a lot of people make a decent living by trading Forex, not all of them are successful. Although Forex market may be filled with traders who have made fortunes, only a few of them make their money on a consistent basis.
The topic of how to make money in Forex is as tough to tackle as the phenomenon itself. Since trading Forex is complicated, one would wonder how a broker can even consider offering free services. Well, here are some tips on how you can trade Forex without being cheated by your broker.
A broker always offers free service to help his or her customers make more money. One of the reasons why brokers are so accommodating is because they see Forex as a profitable business and one way to gain their customers' trust. Since you will be dealing with a broker, your credibility is already in their hands.
Try to find out if the broker is upfront about what his/her commission is going to be. You should be wary of brokers who try to pressure you into signing up for something or into doing something you are uncomfortable with. If the broker does not reveal their fees upfront, then you should get another broker instead.
The Forex market is subject to various trends and events that are beyond the control of any individual. If a broker tries to persuade you to put your money into one stock or another, avoid it. If he or she tries to get you to borrow money, then it is probably just a tactic to get you to continue working with them. If you are trading Forex, be sure to avoid a broker who closes your account without warning. Most brokers do not like to have an inactive account because this means that they will be left holding a zero balance. Any broker will tell you that closing your account for any reason is against their company policy. And since it is against their policy, you should avoid them all together.
If a broker tries to force you to put your money into a particular deal, then never fall for it. That is their first tactic to get you to trust them. As soon as you have become comfortable with them, tell them that you are comfortable with them, and that you want to go on working with them without paying them anything.
Another way of knowing if you are getting honest Forex information is by reading the testimonials that the broker is displaying. If the feedback you read is very positive, then you can feel fairly confident about that broker. Also, check out the following things:
There are a lot of times when traders will get very frustrated and close their accounts after being in the Forex market for too long. You will notice that many times, people have been in the market for years, and they just cannot cope with the difficulties and stress of the Forex market. If you have been in the market for years and still find yourself having problems making money, then you should stop the losses and go back to the drawing board.
Some brokers sell nothing but the ability to give advice. This is just one of the ways that brokers sell themselves. Most of the time, they do not sell anything except themselves.
Another thing to check out in a Forex blog or forum is to see how the broker handles the fact that you are trading with him/her. If the broker is constantly trying to bribe you into putting more money into his or her account, then beware. Many people who sign up with brokers are doing so under duress, and once they find out that there is no trickery involved, they tend to avoid that broker.
If you find yourself in a situation where a broker tries to charge you a huge fee without providing good advice, stay away from them. You will still be able to earn plenty of money with other brokers, and just look for the one who will not play games with you.