It is important when choosing a forex broker, to decide upon your preferred trading strategy. What do I mean by this? I get forex related questions asked all the time and the top forex question has to be “What trading software/bot/auto trader will make me the most money?”.
Curiously enough this question generally comes from would-be forex traders who have never traded before…novice traders!
This is trading suicide, if you have the perception that you can just plug-in an expert advisor/ea into MT4 (Metatrader 4) or even MT5 (Metatrader 5) and overnight you will be a forex millionaire. My advice to these kind of questions is try manual forex trading first.
It’s easy and you don’t have to be a stock broker, a financial whiz kid or financially knowledgeable. Go and choose a forex broker and trade manually for a while, just watch the charts and when the currency pairs charts are at their lowest point, open a “buy” trade, when the chart raises up, your “buy” trade will create profit. Once the chart is at the top open a new forex trade as a “sell” and yes, you have guessed it, when the chart falls, you will receive profit on your forex trade.
Don’t forget to close your trades when you have enough profit and my top tip is don’t be greedy! It is better to trade multiple forex lots and make small amounts of profit, than hold out for a large profit trade which could turn the other way and wipe you out.
Also, if you have a position or trade that is in the minus figures, open a trade in the opposite direction e.g. a buy or a sell and this might counter-act your loss.
Once you have learnt how to trade forex then you can look for an automatic trading robot. There are loads to choose from fapturbo, ibybot and many more and they all do very different tasks including hedging and scalping.
Then you need to find the best forex broker for scalping or a forex broker that will allow your ea/expert advisor to run with minimum hassles. You will find that some brokers perform re-quotes, this is a method used by the brokers to try to combat the forex scalping software. What this means is when you are scalping, you are trying to open and close positions very quickly, what the broker does is stall this transaction by re-quoting, thus saving or making a few pips/points/spread on the order, which in turn can totally throw your scalping software.
Sometimes this re-quote is a genuine delay between your ISP and the trading sever, so always check your internet connection and firewall settings if you are having regular forex requoting issues.
I have been trading forex both manually and with forex autotrading software for over 3 years and of the 15 brokers I have been with, here is a breakdown of the better brokers that allow scalping and don’t re-quote (often).
United World Capital http://www.uwc-fx.com is a regulated forex broker, which protects the money you invest with them. I found that the system does re-quote occasionally but the forex bonuses available out-weigh the re-quotes.
Forex Hunt http://www.forex-hunt.com is an un-regulated broker and by far the best forex broker which I have used. Their system is quick and in over 4,000 trades I have never had a single requote!
I will cover the differences between regulated and unregulated forex brokers in a later article, this article is further to my article “The Forex Hunt For Forex Brokers Begins!”
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by Aaron Vast