It is very important that you keep an open mind when it comes to matters like this. Do not wipe out the possibilities that respected forex brokers that have been in the market for long are isolated from practices like this, as it may surprise you that even reputable forex brokers are involved in acts like this. I would not list out brokers that in my opinion are involved in acts like this as this article would remain unbiased. I would only outline tips on how you can discover if your broker is involved in this act. There are facts that you’ll need to know in order to understand how forex traders can trade against you. This involves the simple truth that these brokers posses the technology that allows then not to show you THE REAL MARKET QUOTES as quoted on the interbank market, rather they could choose to show your some DEVIATED QUOTES.

Having said this, I believe that the forex broker can trade against their clients as your broker can employ a cheating scheme that allows it revert quotes to go against its clients once they are in the profit region and are close to their take profit margin. This software could start showing you deviated quotes that are not in tune with real market quotes and this can be just go against your trading strategy and wipe you out on profits.

It’s not as simple as I place the facts, although we have very honest brokers out there. It is important to state that we also have brokers out there that want to make big profits and make it fast.

We have the Retail Brokers and the Forex Brokers without dealing desk (ECN type), the Retail Forex Broker basically want to see you fail so they can make more money. They do this by applying price change tactics, Spread widening and to crown it all trade against you. The ECN type Broker is most likely your best bet to honesty as they just execute your trades just like the interbank brokers do. They do this with slim leverages and generally they offer high minimum account deposits.

Therefore, if you really want to know if your forex broker is trading against you then start trading live with a small sum before you go invest the big bucks.

We find quite an awesome number of forex brokers out there on the internet, and we also have these forex brokers offer juicy bonuses and promotions, terms and conditions, and some other features to lure customers into signing up for live accounts on these platforms. Getting a forex broker that is regulated should be one of those criteria that every forex trader should be looking out for and this can be a time consuming process after all.

A regulated forex broker is one that is under the watch of a higher regulatory supervision that enhances transparent and efficient transactions between the client and the broker. These forex brokers that are supervised by these higher regulatory bodies have the brokers submit documented financial reports to them and when they fail to do this sometimes a fine is levied on them or their licenses could be revoked sometimes depending on the gravity of the offense perpetrated. Investor protection is maximized under a regulated forex broker. The forex regulatory bodies would protect investors in the market against fraud, shoddy trade practices and other manipulations that are carried out by forex brokers sometimes.

To get a forex broker out there that is regulated, you would have to find out the country of origin or that broker. Some regulated forex brokers are more flexible than other. Therefore your must get a broker that is regulated by the local authorities in that country or region.

I would list out clearly below criteria to look out for to know if your broker is regulated or not;

1. Check out the country in which the broker operates and verify if it is registered with the regulatory body in that country. You can always get the forex broker’s address and registration ID on the forex site. If this information is absent on the site you can call customer support or I’ll advise that you run fast.
2. In the United States for instance we have the NAtiona Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) that is responsible for forex brokers’ registration in that country. In Swiss forex brokers are regulated by the Swiss federal Department of Finance or FDC. Due to their regions of operation their flexibilities varies.

Recently the NFA did publish a brochure called “Trading in the Retail Off-Exchange Foreign Currency Market” and this is used to educate investors on retail forex trading. Investors can consult this brochure before selection.

We can gauge the quality of the service offered by a particular Forex Broker by examining four different criteria.

Reliability

To know whether a company is reliable or not you need to look at things like the number of years they have been in operation. If they have been around for a long time then it is likely that they have experience and a proven track record. Another good indicator of reliability is to check whether the broker is registered with the appropriate regulatory bodies in their country – in the UK it would be the FSA. If the firm is a member of a body such as the FSA then this indicates that they have to adhere to certain standards and codes of practice.

Spreads and Leverage

Take a look at how low the spreads are. If a broker has a solid and stable foundation, and is well established with the major banks then they will be able to offer much lower spreads. If a broker offers high leverage then you will have to deposit less money with them.

Tools and Resources

A good broker will have a range of research tools and information resources available for their clients. If you can see that the company has clearly invested time and money into what it offers its clients then you can have confidence in them as a serious business entity.

Technical Support

Make sure that there is constant access to help and support available to you. Bearing in mind that the Forex market is traded 24 hours a day, you want to know that if you have a software problem at any time of the day and night you can access the assistance you need.

Once you have established these basics, then it is time to dig a little deeper and ask some more specific questions about the service on offer. Examples of things you might want to know include:

Does any part of the spread go to anyone outside of the firm? Sometimes there is an agreement by the broker to pay introduction fees or affiliate sales agents a percentage of your trading activity.

Will you be subject to trading restrictions around the time of news announcements? This is the case with some firms so make sure you are aware of the policy.

Find out more about the spreads, specifically whether they are different according to the size of the ticket? Also find out whether all clients are offered the same spreads? Does the broker offer any rebates or volume discounts? What are the typical spreads for the various currency pairs?

Something else which is useful to check out is to see whether the firm has a discussion forum for their clients. If they do and the forum postings are open and uncensored this can give you an excellent indication of what it is like to be a client of this broker.

Most brokers offer a demo account facility which will enable you to try out the service without risking your own money. You need to check if it is different to the real account in terms of functionality, available spreads and execution.

If, having checked all of these points, you feel happy with the service being offered, check how much you need to open an account and go ahead! Once you have found a good broker you are well on your way to success in the Forex market.

It is a good idea to establish what your buying and selling style is – or what it is likely to be, then you can look for a broker that suits your needs. Ensure that their software is easy to use by trying out the demo version and that there is adequate customer support available. A good broker does not discriminate on account or trade size, or the type of customer that you are. Establish what the spread policy is, ensuring that all restrictions and trading conditions are made very clear to you.

Check to make sure that the broker is registered with the appropriate regulating authorities such as the NFA or CFTC in the USA or the FSA in the UK. If they aren’t registered with one of these bodies then you should proceed with caution as they will not be bound my stringent rules and regulations that are a condition of registration and are designed to protect the client. If your broker is based in another country then you should find out the name of the regulatory body for that country and ensure that the broker you are considering is registered with them.

Before delving into the list of the Best Forex Brokers we need to answer certain questions about Forex trading and the facilities these brokers offer. Before opening an account with a broker we need to know certain facts about Forex trading.

Forex Brokers are generally of 3 types:

Crucial points to identify a suitable Forex Broker:

1. Easy accessibility.
2. Minimum trade size.
3. Customized service regarding margin, spread, minimum margin, trade size.
4. On your feet – Market Maker/NDD/API.
5. Governance of Regulatory Authorities.
6. Spread – easy or tight, varies for larger and standard accounts.
7. Slippage.
8. Platform to trade in number of currencies.
9. Rollover Policy.
10. Broker/Commission.

Below You can find my list of the Best Forex Brokers:

The bottom line is that a good Forex broker – and the best broker for you, is one who wants to help you make money. This means that you should feel comfortable with them, if you have questions they should be able to answer them for you and they should make you feel that they really care about whether you are making money from your trades.