Disadvantages of Forex brokers or how to avoid problems.

Anyone who's ever traded Forex can tell you that choosing the right broker is crucial to successful trading. No matter how well you understand the market, poor trading can ruin all your efforts in an instant.

Therefore, it's crucial to know the shortcomings of some brokers, the potential consequences, and how to avoid them.

The current structure of the trading system means that virtually no one is immune to failures, but brokers also face the following problems:

• Spread manipulation - you've often seen ads like "We have the lowest spread, or none at all," and the result is 4 or even 5 pips instead of the promised 0.5. There may be several reasons for this deception - firstly, the advertisement indicates the minimum floating spread, and secondly, the advertisement may simply be lying. It should be taken into account that even a fixed spread can change with our brokers. To control it from the front, it is advisable to use the spread indicator .

• Transfer delays - some brokerage companies have a lot of conditions, only after fulfilling which you can withdraw your money, sometimes the withdrawal process can drag on for several weeks.

• Slippage is a rather unpleasant phenomenon, especially if you trade using scalping , opened an order at one price, and received a price several pips worse. There is only one way out: either set a minimum deviation from the quote price or change the broker.

• Requotes - when an order cannot be executed under the specified conditions, for example, you set a minimum deviation of 2 points, and the price moves so quickly that the price changes by more than 2 points during the signal transmission time. Everything depends on the individual qualities of your broker's services, or more precisely, the speed of their communication channels and equipment.

• Ignoring the client - sometimes it is simply surprising why they respond to a sent letter for several days, or it is impossible to find someone in the online chat. Before opening an account, try to communicate with the managers; it will probably become clear from the very first moment that it is better not to work with this company.

• Restrictions - this especially concerns the duration of transactions; most brokers do not like scalpers, limiting the number of orders opened in one session and the minimum duration of a transaction. There is only one way out - work only with brokers specializing in scalping . Once an account is blocked, it is almost impossible to prove your case.

Always remember that it is better to predict troubles than to blame someone else for them later, so try to work only with reliable Forex brokers .