When choosing a forex broker, it is important to decide on your preferred trading strategy. What I mean by this? I get forex related questions all the time and the main forex question has to be “Which trading software/bot/auto trader will make me the most money?”.
Interestingly, this question usually comes from potential forex traders who have never traded before…newbie traders!
This is trading suicide, if you have the perception that you can just plug in an MT4 (Metatrader 4) or even MT5 (Metatrader 5) expert advisor and overnight you will be a forex millionaire. My advice for these types of questions is to try manual forex trading first.
It’s easy, and you don’t have to be a stockbroker, financial whiz kid, or financial expert. Go and pick a forex broker and trade manually for a while, just look at the charts and when the currency pair charts are at their lowest open a “buy” trade, when the chart goes up your “buy” trade. purchase” will generate profit. Once the chart is at the top, open a new forex trade as a “sell” and yes, you 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 best advice is don’t get greedy! It is better to trade multiple lots of forex and make small amounts of profit than to wait for a big profit trade that could turn around and kill you.
Also, if you have a position or trade that is in the negative, open a trade in the opposite direction, for example a buy or a sell and this could offset your loss.
Once you have learned how to trade forex, you can look for an auto trading robot. There are plenty to choose from between fapturbo, ibybot, and many more, and they all perform very different tasks, including hedging and scalping.
Next, you need to find the best forex broker for scalping or a forex broker that will allow your ea/expert advisor to function with minimal hassle. You will find that some brokers do requotes, this is a method used by brokers to try and combat forex scalping software. What this means is that when you are busting you are trying to open and close positions very quickly, what the broker does is stop this trade by requoting thus saving or doing some pips/points/margin on the order, which in a in turn you can totally throw away your reselling software.
Sometimes this new quote is a real delay between your ISP and the trading server, so always check your internet connection and firewall settings if you are having regular forex quote problems.
I have been trading forex both manually and with forex auto trading software for over 3 years now and of the 15 brokers I have been with, here is a breakdown of the best brokers that allow scalping and do not retrade ( often).
United World Capital http://www.uwc-fx.com is a regulated forex broker, protecting the money you invest with them. I found that the system occasionally requotes, but the available forex bonuses outweigh the requotes.
Forex Hunt http://www.forex-hunt.com is an unregulated broker and by far the best forex broker I have used. Their system is fast 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 after my article “Start your search for forex brokers!”