Choosing the Right Broker

Well bonus giving brokers often lock your funds until you activate their CPA, which means making a deposit and placing 1-3 trades... It's the same concept as casinos and Matched betting. Just need to make sure that the broker is regulated, or shows some sort of proof of legitimacy...

Treeny posted:
Agree that bonus giving brokers should be avoided. They often lock in your real funds and make it impossible to withdraw any money from them

Yep, that is correct. The very simple reason is that brokers giving bonuses in 99% are market makers. Why market makers - because those bonus is fictive and even in case of lose, the broker will not loose any own money, but the trader will lose his account, which will be profit for the broker.
 
On the other side are the STP brokers. Those brokers will not offer you bonus over deposit, because all orders are sending to different LPs, out of the STP brokers ecosystem, which means that those bonus amounts will stay as a guarantee of open position and the broker will bear the risk of lose. That is the reason the real STP brokers acting on agency model to be the real intermediaries and they will not give bonus over deposit, but in fact the bonuses they are sharing to traders are: low spreads, much better execution, high protection and safety of traders funds, solid regulations and etc. :)

JuanJoel posted:
Well bonus giving brokers often lock your funds until you activate their CPA, which means making a deposit and placing 1-3 trades... It's the same concept as casinos and Matched betting. Just need to make sure that the broker is regulated, or shows some sort of proof of legitimacy...

Whatever you said might be true but thank god i never faced such problem. my current broker was offering 100% deposit bonus, i used that successfully and made decent profit. Also every time i got my withdrawals on time without any nonsense.

So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.

YES YOU NEED TO DYOR

togr posted:
So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.

When a broker offering unrealistic bonus, then it’s easy to judge their real trading activities; traders should avoid this type of market maker.

CRPA9 posted:
YES YOU NEED TO DYOR

Always DYOR

togr posted:

CRPA9 posted:
YES YOU NEED TO DYOR

Always DYOR

Hi mate, what is Dyor? Is this any company name or anything else?

togr posted:
So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.

It’s true; I see good Forex brokers don’t offering any bonus; mainly market maker brokers are active this type of marketing based feature.

Adribaasmet posted:

togr posted:

CRPA9 posted:
YES YOU NEED TO DYOR

Always DYOR

Hi mate, what is Dyor? Is this any company name or anything else?

'Do Your Own Research' - I guess.

EMA40 posted:

Adribaasmet posted:

togr posted:

CRPA9 posted:
YES YOU NEED TO DYOR

Always DYOR

Hi mate, what is Dyor? Is this any company name or anything else?

'Do Your Own Research' - I guess.

Hi ema; hope you are here for searching! Best wishes!

pmichael posted:

JuanJoel posted:
Well bonus giving brokers often lock your funds until you activate their CPA, which means making a deposit and placing 1-3 trades... It's the same concept as casinos and Matched betting. Just need to make sure that the broker is regulated, or shows some sort of proof of legitimacy...

Whatever you said might be true but thank god i never faced such problem. my current broker was offering 100% deposit bonus, i used that successfully and made decent profit. Also every time i got my withdrawals on time without any nonsense.

I know! The thing is, if you look for regulated forex brokers, you can always file claims against them either with the FCA or CySec (or whichever entity regulated them).

This website has a good list of regulated forex brokers you can check https://insidebitcoins.com/forex-brokers

They even target by country, feature and list the pros/cons of each broker.

according to me, choosing a local government –sanctioned forex broker in our own city city/town should be our first priority, unless there isn’t any... And go visit the office before or when opening an account m if possible

There are almost thousands broker in online retail market place and most of them are found to be scams. So it is very much difficult to find a right broker from all, we can choose the broker which is more appropriate to the concept of trading that will be used , the traders who are particularly scalpers should choose the broker that allows trading concept such as this.

Before large investments we generally open a demo account in a broker to see the performance how it works. But I have seen, after large investments brokers attitude changes sometimes that is not available in micro accounts.

Commissions, account minimums and fees are just some of the factors you should consider when choosing an online broker.
To evaluate brokers, you should look at the following factors:

1. Commissions.
2. Account minimum.
3. Account fees.
4. Your trading style and tech needs.
5. Promotions.

Mohammadi posted:
There are almost thousands broker in online retail market place and most of them are found to be scams. So it is very much difficult to find a right broker from all, we can choose the broker which is more appropriate to the concept of trading that will be used , the traders who are particularly scalpers should choose the broker that allows trading concept such as this.

I wouldn't say most online brokers were scams but agree that some (more than there should be) are. Scalpers should opt for a scalp friendly ECN broker IMO.

sometimes we try to confirm brokers real performance by using demo trading , but in practical lots of difference there is between demo and live on a broker. 

Imamul posted:
sometimes we try to confirm brokers real performance by using demo trading , but in practical lots of difference there is between demo and live on a broker. 

And emotions as well; when you are trading in demo you know that; it’s all about the virtual money! But the live trading is completely different!