Thinking To Change Your Forex Broker?

Written by Himanshu Jain

Choosing a good Forex broker is the first step while starting your trading career, be it full time or part time. But well, the above statement is not completely correct. It may so happen that you start trading and come across some bad experiences and now you wish to change the broker i.e. back to square one for choosing the broker which is best for you.

We will try to address both of the above points but in this article we will cover the second possibility. "Why" is the first question. The answer can be mainly either of the following:

a) Not satisfied with your Forex broker.
b) Have not really faced any issues but found some great review for another broker.

 1) Changing the broker because of lack of satisfaction

If the above is the case then the first question you should ask yourself whether the reason for the dissatisfaction is:

• A valid reason out of experience or
• Simply a doubt or
• Need for better convenience.

To clarify this further, for example you might have faced repeated issues while withdrawing the money or your queries have been repeatedly being ignored and you experienced serious support issues. Now such cases are the genuine issues and your search for a different Forex broker is completely justified. The example for the third point i.e. need for better convenience could be deposit or withdrawal options or trading options like trading from mobile or social or community based trading where you can follow other successful traders. If this is the case then you need to analyze further whether your need for such requirement is very important or is just to experience a new thing. If it is really important then again the selection of a different Forex broker becomes a valid reason.

Now let's talk about the point #2. The common human psychology is to hate the failures. But then there is nothing wrong with it. But then comes the second and almost equally common psychological factor and that is to blame someone else for the failure. Well, everything is wrong about it. You may commonly see reviews of Forex brokers where people mention that their broker does some manipulations so that the trades always meet the stop-losses by some sudden spike in prices. If your reason for finding a new broker is this kind of doubt then you need to seriously check into it. Forex market is a very volatile market and prices do have volatile spikes. If your stop-losses are very tight then there is always a possibility that you meet the stop-losses before the price move in the direction you expected it to move. And as mentioned this may prove to be true at many times even if your stop-losses are not tight. Big spikes do take place.

A reasons as per the above example fall into the "Doubt" category. There may be other such doubts and we need to really analyze if we are just passing the blame of the reason is genuine.

 2) Have not really faced any issues but found some great review for another Forex broker:

The internet is always full of reviews and criticism and nothing should be taken on the face value. Forex brokers have to sell themselves and some extremely good Forex reviews may be floating from their own side. Simultaneously a very negative review might have been  written by some competitor for another broker. It is very important to do a thorough research to analyze and filter the reviews of brokers.

Please also check Selection of a Forex Broker - The "How" Factor.
<- Go back to Forex brokers section.

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