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I think it's fair to say that most forex traders have at least one or two issues with their chosen forex broker. In fact most people will probably have a love-hate relationship with their broker. However it's still a good idea to stay in their good books because otherwise you risk losing your trading account completely.
So what kind of things are most likely to upset your forex broker?
Well the obvious answer is to mention the fact that they hate traders who consistently win money from them. This is a natural assumption to make, but it's not always as clear-cut as that because if you do happen to develop into a highly profitable trader, the broker you use to trade with can simply hedge your trades elsewhere, and maybe even profit from them as well.
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As long as you are trading independently, you probably won't face any problems if you do start to make some decent profits. What they do not like, however, is for you to use a forex robot on their trading platform. This is especially true if hundreds of other traders are also using the same robot.
Of course if it's losing money then they may not have a problem with it. However if it's a top quality expert advisor that's actually generating consistent profits for it's users, then you may find that it's only a matter of time before your broker bans this robot completely. They may even ban you as well in extreme cases, which is not something that the sellers of these robots will warn you about before you start using their robots.
Another way you can upset your broker is to place lots of short-term trades, particularly if they turn out to be profitable ones. This is because if you are trading in and out of positions within a matter of minutes, the broker does not have any time to hedge your trades.
Therefore you will usually find that if you continue trading this way, your broker will either give you a warning, close your account, or start to make things difficult for you. For instance they may ensure that the trading platform freezes or is very slow when you come to trade, and they may widen the spreads as well to try and limit your profits.
So the point is you really don't want to get on the wrong side of your forex broker. As long as you don't try and scalp the markets all the time or try and generate profits using a highly profitable forex robot, you should have no problems at all, even if you are successful.
About the Author:
Click here for a full list of forex brokers and to discover lots of free tips and strategies relating to currency trading including the exact 4 hour trading strategy that James Woolley uses to trade the markets.
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Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation. |
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