Forex and trading brokers
It is relatively important to find reliable forex brokers, and the majority of forex traders confirm the validity of the currency trading statement successfully without a broker.
Nevertheless, the argument does not spread among the successful traders, who are the first source of income forex, they do not care about the charges against brokers.
All their focus is on studying the background of Forex brokers before opening their account with him, due to the many doubts surrounding online brokers.
Up to licensed brokerage firms that were not immune from these suspicions, after many of them fell under the jurisdiction of law after discovering fraudulent practices.
It is therefore logical that traders question the integrity and credibility of Forex brokers working in the market.
Therefore, one must consider the main reasons why traders are skeptical of brokers, describing them as fraudulent companies and not reliable.
Reasons for questioning the integrity of Forex brokers :
The trading platform provided by Forex brokers should be stable all the time, even while important news is being released on trades.
It is well known that the trading platform for brokers is the basis of their business, logically they are aware that the repetition of the consequences will push clients to search for other companies.
Therefore, serious brokers are keen to use servers that have the ability to deal with the contemporary cases of many numbers of trading orders.
The platform nevertheless faces several difficulties during the year, with some surprising events freezing or disconnecting the server.
As is the case with exceptional important news, it is often counter to the fact that junior traders consider companies unfair.
If the platform is exposed to instability many times, especially during the release of important news, then the trader in this case will have reasons to doubt the broker’s motives.
Slip price and order execution
Most of the time, the market suffers from a lack of liquidity during important events, which is one of the main reasons for the re-pricing situation in the fast moving markets.
As delaying the trading order for a few seconds’ leads to failure to reach the entry price, so the deal is not executed unless the broker controls this by providing liquidity.
Therefore, the re-pricing situation is a logical consequence of the nature of the overall correlations of the levels of brokers and liquidity providers in the Forex market.
It is considered impossible to avoid repricing, but the broker has the ability to reduce it by contracting numbers of liquidity providers.
The repeat quote that a trader raises the bid price makes sense to question the integrity and efficacy of brokers.
Traders avoiding chances of entering positions at some points tend to place market orders in order to avoid re-pricing, and they may also be subject to price fluctuation in the volatile market.
Slippage may be positive or negative from the trader’s side, but the trader’s exposure to negative slippages often gives him an uneasy signal.
One of the factors that can be based on assessing the efficiency of Forex brokers is the occurrence of a mixture of balance between positive and negative slippage.
It is important to know that trading orders are executed without price slips during periods when the volatility level is within the usual limits.
Some see that the repeated delay in executing or executing orders at different rates than the targeted levels is a sign of the brokerage firm’s lack of credibility.
Heterogeneous slip is considered a fraudulent strategy based on executing customer orders when price slip is in the interest of the broker.
However, the broker directs the platform to issue a re-quote when the slip is in the customer’s favor.
The forex broker must increase the value of the spread to reduce the severity of the risk during market turmoil.
However, the trader cannot trust any brokerage firm that increases spreads to illogical levels.
Once traders has posted a buy or sell position for the next day, he or she will win a rollover fee “Roller Fee” and calculated as follows:
– The resultant difference between the interest rates, minus the commission of the forex broker against the posting of the trading center multiplied by the contract value, and then divided by 100.
Multiplies the previous product by the result of dividing the current price by the number of days in a year, and rollover fees vary according to the commission given to the Forex broker.
The trader must study the rollover fees paid or given to the Forex broker carefully, especially on the most liquid currency pairs.
When the broker follows the policy of imposing high or low rollover fees on all currency pairs, this is a sign of the brokerage firm’s impartiality.
One of the important factor that demonstrate the company’s credibility or not is its credibility in withdrawing funds.
As the delay in processing payments for a long time, intermediaries lose their credibility to customers, and therefore companies send the withdrawn money to customers quickly.