Forex Brokers - Why Many of the Services Offered As Advantages Help You Lose!

By: kelly Price
Forex brokers today, provide a number of services traders think will give them success but in fact they will simply ensure you lose. Too many traders there not obvious so here they are...

1. Low Deposits

The chances of making money on 50 or 100 dollars are really low unless you're lucky and most traders are not the minimum balance anyone should start trading currencies with is $1,000.00 and really $3,000.00.

On a small amount you have little chance and really if you are taking currency trading seriously, commit an amount you have a chance of making money on.

2. Leverage

Most traders simply don't understand that while 200 or 400:1 leverage seems generous, most brokers know that the client will blow themselves up by over leveraging, don't forget most brokers are market makers and make money on you losing! 10 - 20: 1 is enough for most traders.

The fact is over leveraging, causes more traders to lose than any other reason.

3. Test Your Skills in a Demo Account

It's a good service in terms of learning the mechanics but it's a scenario without money and without money it's not an authentic trading experience. Most traders make money in a demo account but when the pressure is on of real money they crumble under it and lose.

Don't assume because you make money in a demo account you will make money in a real account.

4. Broker Research

Broker research is the same old stories re hashed from news wires which reflects the consensus view.

Follow it and you will lose.

Don't expect anyone to lead you to forex trading success you have to do that on your own and stay away from the majority view or join the 95% who lose.

Choosing Your Forex Broker

When choosing your forex broker, there are only 3 criteria you need to take into account

- The safety of your money i.e. the financial standing of the broker

- The pip spreads they offer and you should go for the lower the better

- The ease of use and reliability of the forex trading platform.

That's it!

Most brokers will offer you enough leverage and it's a big boys game so the fact you can deposit a 100 bucks is not an advantage, as your odds on to lose. Finally, forget a broker assisting or helping you, they may have good intentions but their research wont help you enjoy forex trading success.

Today you can get great pip spreads and superb trading platforms and they are your tools to link you to the most exciting market in the world - global forex trading and you have a great opportunity to seek big profits.