When it comes to Forex trading, the forex broker that you choose to trade with can make or break your success. Right ? There are two major factors other than low spreads to consider when choosing a broker for your Forex trading. The first consideration is that most MT4 brokers operate as market makers. As market makers, they will trade against you to their advantage! They are the counter parties to your trades so that they can profit from your losses. You just have to trade on both the practice server and live server to realize that while you can make money with your practice account with some brokers, it won’t be the same with your live account.
Non-dealing desk brokers on the other hand offer every trader, big and small, equal access to the inter-bank market. The rates, bid and ask prices on a non-dealing desk platform are not those set by an individual broker but those derived from active trading between participating banks, institutional investors, FCMâ€™s and individual traders. The process itself makes every trader, regardless of size, an independent market maker. Hence, a good way to determine if your Forex broker has a dealing desk – be it a human or a computer, is that it requires you to have separate accounts to trade standard, mini and micro lots. This distinction makes it easier for the market making broker to target the accounts that they can trade against. The ECN brokers are like an inter-bank brokers. They consolidate bank quotes and show you the best bid & offers available. They do NOT trade against you or manipulate the price. They just take commission and operates like a toll-gate keeper.
My recommendation is to choose a broker with genuine STP or straight thru processing that operates like an ECN (Electronic Communication Network) if you want to seriously make money in Forex. Indeed, Fxprimus offers its traders the option of an ECN Premiere Account. An account with Fxprimus‘ fixed, variable or ECN option also enables the trader, the flexibility to trade any lot sizes, be it standard, mini or micro. The second consideration is the safety of your funds. You just need to google to find horror stories of clients losing their hard earned money to unethical brokers. The problem is that many brokers do not segregate their clients funds and hence, their clients’ money is at the sole mercy of these brokers. Brokers which have large 3rd parties to manage client funds keeps their senior management and owners from the possibility of dipping their hands in client funds to “borrow” to cover Losses. Fxprimus, is the Industry First, to have a 3rd party administrator to manage and administer their client funds. The administrator – Turnstone Corporate (Mauritius) Limited appoints directors to sit on the board of Fxprimus to ensure good corporate governance. Fxprimus‘ annual audits is performed by world-renowned firm, Ernst & Young. The FXPrimus Trust Account option offers the traders, the ultimate in the safety of our funds. If you want to sleep well, you should insist on a broker that has an independent third party fund administrator to monitor the flow of client funds.