Nobody likes getting short changed in any area of life so it is not surprising that most traders, both old and new, are constantly on the look out to ensure that their forex broker is not cheating them in any way, and is offering the best spread value available. We will be looking at a few things you mustn’t notice if you are using the best forex broker.
A good forex broker won’t increase spread arbitrarily
It is common knowledge that spreads get widened at market open (10pmGMT) and the first 3 minutes during high impact news releases like the NFP. Apart from these two periods, most genuine broker’s spreads stay virtually the same for the rest of the day. The brokers with floating spreads even reduce theirs during heavily traded sessions like the US and UK sessions. Therefore, if you notice that your broker’s spread could be 3pips this minute and 5pips the next; leave them as soon as you can. Of course it may not be much of an issue if you do not have much money in the account but it will surely add up by the time you have bigger funds. Again, imagine the number of people they are fleecing. By the time you leave them and post just one negative review in a decent sized forum, others would leave too!
The best forex brokers should not hunt your stop loss
This is a fairly common problem that some traders complain about. After entering a trade with automatic stop loss and take profit intact, traders notice that take profit orders don’t get triggered until price has moved past it by 10 pips or more, but stop loss orders get triggered even when price is still 3 pips away from it!
If you are using one of the best broker platforms, this shouldn’t be the case. Take profit and stop loss orders should be activated as soon as the BID or ASK (as the case may be) is exactly the same price as you already predefined. Anything outside of this, your broker is manipulative. You can also open a separate chart to confirm what the price is on other platforms. If the high and low of the particular period is different from what you have on your chart, you are using a scam broker.
A good broker should not come up with different reasons why you want to withdraw money
This is another area where you’ll know a good broker and one that is bent on cheating. Some brokers will watch you make profits but when it comes to withdrawals, they will either tell you they can’t transfer money to your country or present a trade you closed too early signifying scalping, meanwhile they did not warn you beforehand that they do not allow scalping! Some of them try to look responsible by sending you your initial deposit but do not be fooled! They have already made you waste your time while they were busy collecting spread. Some of them will not tell you about the need to verify your account by sending in documents until it is time to withdraw money, either way, it is cheating!
If your broker has ever done any of these, they are clearly not among the best forex brokers!