Surprisingly, this may be one of the most important decisions you make outside of developing or learning a profitable strategy and not over-leveraging your account. You need to find an ethical broker who will not play tricks with their pricing and stop you out of your trades in order to fatten their wallet. This is typical behaviour of unethical market makers who have an economic incentive for you to lose when they are on the opposite side of your trade. Not all market makers behave in this way, so it is a good idea to do your research on all market makers and brokers before opening an account with them. Visit the Forex Broker Ratings section of this site for some useful assistance!
Managed & Semi-Managed Investments
Some market participants may prefer not to take the self-trading route but instead opt for a managed forex account, automated trading system, auto-trading platform or trading signal provider. Each one of these approaches doesn't require much input from you, as most of the decision making process of when to open and close trades is left up to others. Your decision making rests with choosing a system, adjusting your leverage, placing trades, or determining which trading signals to take. If you choose to open a managed account, find out how much leverage they use when they trade your account. Excessive leverage could lead to large drawdowns that could wipe out your account.
If you decide to use an automated system, autotrading platform or forex trading signal provider where you set the level of leverage, be sure to keep it to a manageable level. See rule #2 above for more information.
It is a good idea to diversify your investments amongst several managed account providers and/or systems to even out your returns - When one account is up, the other may be down, and vice versa.
There are of course many other factors and questions to consider when opening a managed forex account or choosing an automated system or signal provider, however, these ones should hopefully help you avoid any unforeseen circumstances!
With those ideas in mind, this site has been arranged in a way to take you through many aspects of the retail spot forex market so you can learn at your own pace and visit the sections that interest you most.
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