When you first start looking at foreign exchange trading brokers it can seem like they have all the advantages and you have very little. Fact is you have some measures you can take to ensure the odds are more in your favour than not. It might take a little work; however, it is all worth it. There is no sense letting brokers take advantage of you, which is why the following are assurances that you can definitely gain a bit of upper hand.
Taking Charge in Foreign Exchange Trading
Do not be a dog on a leash when it comes to trading in the forex market. A dog on a leash is held in check. It is often led where you want to go and if it tries to go on a different path it is held back. In foreign exchange trading you can be the dog on the leash as well as the one holding that leash. If you use the price feed on your trading system and only check the price feed on that system you are being led by the leash and worst yet you are keeping yourself on that path. Instead, you can be smart. You can have more than one source you go to for price information. You may want to have two or three broker platforms you use for trades to ensure the best price is yours. At the very least you should check to see if your broker is keeping things fair. As you search for a broker you do a price comparison. After a couple of months re-evaluate by looking at other feeds to see if the price feed is still fair. If the feed changes and is not in your favour you can move on.
In foreign exchange trading you should record everything. Any time you conduct a transaction you should have it written down in a journal. If you do not like writing then keep an electronic log like an excel spreadsheet. This way you can make certain you are protected in the event you feel something is not right with the broker you are using.
The only way to file legal action when you feel there is an issue is to have a recording of the transactions you undertake.
Foreign Exchange Trading Disciplined Habits
The best way for you to protect any transactions you start is by being the best trader you can be. If you are always working at becoming a better trader with discipline, charting, and analysis then you will always see changes in your broker that are not as favourable rather than overlooking them and finding out later.
One of the most common things in foreign exchange trading is that a trader blames a good broker for their losses instead of understanding it is their habits or their ability to trade. Most brokers, especially those regulated, are legitimate. There is no reason to think they will work against you in anyway other than to make a profit in a fair way. You still want to check up on the broker and keep a record, but being a better trader can ensure you are not making big mistakes.