The Foreign Exchange (forex) market is a non-stop money market where foreign currencies of nations from around the world are traded, usually through brokers. The reality is that no trading strategy will work unless you find an honest broker.
The forex market is very liquid and exciting. That’s why millions of people, just like you, invest in this market and the majority who do not want to spend years learning how to trade for themselves prefer a professional to trade on their behalf. Unfortunately forex is also full of manipulation and greedy dealing desk brokerages trying to deliberately stop you out if price nears your stop or widen the spread on your exit so you can’t reach you pre-set target! In other cases your broker will slip, where you click a price but you are filled at a completey difference price or your stop is hit a long way from where you had it placed as in the case of a market order.
Forex is also full of manipulating and greedy dealing desk brokerages trying to deliberately stop you out if price nears your stop or expand the spread on your exit so you can’t reach your pre-set target! Dealing desks are notorious for this.
There are some very important factors that you must know if you want to successfully invest into a managed account.
Today, we will focus on the actual forex broker.The reality is that no trading strategy will work, unless you can find an honest FOREX broker. This is the hardest part of trading and much more of a challenge than the actual trading system itself.
There are two types of brokers. Dealing desk (DD) or ECN/STP. An ECN/STP broker will not interfere with your trades as they make their money on commission on every trade that is taken win or lose.
STP = Straight through processing. What this means is that your trading order will be placed straight through to the liquidity pool provider rather than being placed through a dealing desk.
So when you join any managed account program you want to make sure the fund manager trades the managed account through a true ECN/STP forex broker.
All of our managed accounts are with a very reputable ECN/STP brokers with segregated accounts and a proven corporate solid track record.