subject: Forex Broker Strategies - Protecting Your Profits From the Snippers [print this page] Forex Broker Strategies - Protecting Your Profits From the Snippers
There seem to be a misconception going around about the Forex market. The misconception that seems to be spreading like wildfire is; you need to have an online Forex broker in-order to take advantage of the currency markets. Well, I am here to tell you, nothing could be farther from the truth. Although, trading the Forex market should be reserved for the true experts. If want to find out how to trade the Forex market and avoid the pressure of crooked brokers, than this might be the most important article you read this year.
You don't have to have a broker to participate in Forex trading. You don't even have to be an expert in the Forex market to by-pass the broker. Can you be more successful trading with a broker on your side? There is no clear-cut answer to that question, it all depends on how good your broker is and how well he does with your money.
Some Forex brokers are more concerned in adding to their bottom line than caring for your money. There are brokers that will actually trade against you, otherwise known as sniping. Sniping is a process a dishonest broker will use to cheat you out of your profits. Unfortunately, there is nothing you can do to protect yourself from a broker hell-bent on snipping your profits.
Not all Forex brokers are bad. There are brokers out there that are in the business to help those interested in trading Forex. The trick is to find those brokers who care about their customers and their reputation.
Let's talk about a few steps you can take to limit the possibility of a broker cheating you out of your winnings.
1. Look for a NDD broker (non dealing desk). This type of broker passes your trade orders right though to an interbank market. This process helps to prevent price manipulation.
2. Make your trades though several brokers in different positions. For instance; after you have found a NDD broker look for a few dealer desk broker (DD). A DD usually makes his money by marking up his spread above the interbank's spread. Many DD brokers will also take positions opposite yours.
3. Compare prices you receive from the NDD broker and the DD on all of your trades and you will be able to decide if a DD broker is on the up and up.
Before going live with any of these accounts, try out their demo accounts to get a feel of how they do business. You can also check the firm's reputation on a variety of Forex trading online forums. To do this, go to Google and type in "forums+Forex" or "Firm's name+reviews". This should give you an idea of the over-all satisfaction you will enjoy at said firm.
Technical analysis and tracking the world news can be very helpful in improving your Forex trades so can education. Mr. Chris has put together a website to help you do just that. Click here to learn more about Forex trading strategies, online Forex Brokers,automated Forex trading to get the most out of every trade and much, much more. While you are there sign up for Mr. Closson's weekly news letter and he will send you a Free ebook of Forex trading strategies.
