Thursday, 31 October 2013

Trick or Treat... Forex Brokers To Avoid

A common question I get is what Forex Broker to try.  The more important question is...

What Forex Brokers should you avoid?

It's like Halloween.... trick or treat.  You don't know what you've got waiting for you on the other side of the door you're knocking on.  You might see other kids with big bags walking away from the home, but did they fill their bags at this home?  And is it filled with treats or junk?   Are the kids misleading you into thinking some homes are better than others?

Forex Brokers are hit and miss.  There are many Forex Scams.  Lets face it, anytime you hear something that's too good to be true.... it is.   You know what I'm talking about, those Forex robots, systems, and strategies that will make you rich.   Some brokers have money at you. Sign up bonuses...   Amazing track records... contests for shiny cars...

Another red flag in my books is any broker that's in Cyprus.   Well maybe it's the two brokers that come to mind that have been absolutely horrible with many Forex Reviews calling them scams.

EToro is one such broker.  An online casino like feel, hefty sign up bonuses, empty promises, and quite frankly in the top 5 of worst interfaces and bad customer service.   Nowadays they try to rebrand themselves as a social trading platform and get you hooked with their copy trader features and alerts.   Once you start trading with significant lot sizes and attempt to trade for a living you'll soon have losses due to "technical glitches" and copy trader issues.  Take Profits and Stop Losses not firing and charts not aligning with what other brokers are showing.

Forexyard is another broker to be avoided, they use the ActFX platform which I actually like as it is user friendly, unfortunately it is resource intensive and lets face it, useless when you have a shady broker, which btw has a Cyprus Securities Commission warning issued.   Similar to EToro's bad customer service and frequent stop loss and take profit misses, these guys do stop loss hunts.  

Those have been my experiences, and I'm not alone.  Just google Forex Reviews and you'll find lots of horror stories with these two brokers.