If you have been trying to make earnings trading Forex you will have been researching the most effective broker on the web. You will have identified various brokers providing you a live account beginning with as small as 1 USD. Others will offer you a live trading account with 100, 200 or 500 USD. But can you make dollars trading micro lots with these brokers?
You need to have to choose your broker wisely. You want to know which broker will honor your trades without asking for re-quotes, fixing the rates, apart from indulging in different nefarious activities leading to you losing your cash deposited with them.
You want to know the tricks brokers play on clients just to make a fast buck in the guise of "teaching" you Forex trading.
Most brokers hedge their trades against you. They truly trade against you in the anticipation of you producing losing trades. How, then can their intentions be trusted? If you lose, they hedged trades will ensure that they do not lose money.
By the identical logic, if you make winning trades they will shed money. Can they be trusted not to fix all your winning trades? These brokers are the Dealing Desk brokers.
A lot of brokers profess to not having a dealing desk 90 percent of the time, but think me the dealing desk is there all the time. STP or straight through brokers are yet another lot to watch out for. If they have a STP program why not just say that they are ECN brokers?
ECN is Electronic Currency Network. This is the network exactly where major banks and monetary institutions all more than the work trade foreign exchange. Clients are directly connected to this network and the broker will charge a commission to trade. They have no control over the trades so fixing trades or hedging against the traders is out of the question. These are the accurate STP brokers but then once more not all brokers who profess to be ECN certainly are. There are approaches to locate out the truth.
An ECN broker will not have to say they are STP brokers. They are just playing about with words.
ECN accounts are high priced to open and may begin with USD 2000. That is why it is not feasible to make profits with a 1 USD or 500 USD account. Brokers offering these accounts cannot possibly offer you ECN accounts and they are thus absolutely free to manipulate trades.
All of them will argue but encounter has taught me improved.
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