Are there any Good Forex Brokers?

Once you are comfortable with demo trading, it is time to go live and open a real forex account. The next couple of days will probably be filled with the headache of searching for forex brokers reviews and observing the feedback and suggestions from other traders. Check out Forex Forums and you will learn a lot about all the different brokers.

I have listed a couple of my favorites.

http://www.forexpeacearmy.com
http://www.forexforums.org
http://www.forex-tsd.com

There are many forex brokers out there and most of them have reviews on the net. The question is, are bad reviews really unbiased or they are written by either competition or bitter traders who emptied their account because of the lousy experience?  On the other hand, are good reviews really unbiased or are they written by the representative of a particular forex broker? 

As a new forex trader you already know that forex brokers make money from  spreads ,commissions, or both. So logically speaking it is in the broker’s interest to keep your account. However, is it possible that in reality brokers are out to get you? 

In my opinion, most brokers are out to screw you. You don't want one with a dealing desk because they take the other side of the trade and they don't like to lose. 

All dealing desk brokers do want to see you fail, since they make money when you lose money.  In this case the retail forex broker is the market maker. They can change prices, widen spreads and, of course trade against you. . These dealing desk brokers have the  advantage. They can see your stops and will push prices up to take you out of the trade and then the trade goes the way you had taken. I had that happen so many times when I first Started trading. They also play with you on requotes, time outs, and screw with your charting  platform, especially if you are  making money. I have even had two different brokers not let me close my trade, when I was in profit. 

Forex broker without dealing desk (ECN type) is more likely to be honest about the trades since it passes your trading orders off and doesn’t care if you are winning or losing. Their deal is to get you to trade more and therefore earn more via spreads or commissions. These forex brokers are more like interbank brokers. They don’t trade against you and therefore there is no need to manipulate neither price nor spreads. Spreads are in most cases tighter, but you are probably have to pay commissions. Every trade you make passes through interbank. With ECN forex brokers the leverage is generally lower and the minimum account deposits are higher. I now use these type of brokers and if you starting out , you should to. 

 

In either case, finding a good forex broker is up to you. Talking to people you trust or learning the hard way are two traditional options of finding the right broker for you. My advice is to start small with the broker that seems good and safe, open a life account, make sure that things look right to you and slowly add as you go. 

 Don't invest everything you have in one broker.. Split your fund among few brokers and see what happens. You will sooner or later realize which of them are kind of honest and which ones suck.