Description: Your trading system may be underperforming because of your choice of forex brokers! Here is why!
Today, there are numerous forex brokers that are reliable and financially sound scattered all over the internet. With the stringent laws in place in various countries regarding the minimum assets for a broker, it is safe to say that no one should lose sleep regarding losing funds to any single broker as most of them are now safe to work with. Unfortunately, many traders spend too much time trying to find a reliable broker and they ignore the important part of trading, which is choosing a broker that supports their forex trading strategies. This is why it is relatively common to find traders having to take trade signals off a demo account on another platform because they can’t use their tools on the broker they signed up with.
Scenarios showing how forex brokers affect forex strategies
Traders (especially those on the metatrader 4 platform) often feel that all platforms are the same. This is not true. Even the metatrader platforms forms that are created by the same company function differently sometimes. For instance, if your forex trading strategy is based on fundamental analysis and thrives on riding big releases, then it is very important for you to find a good broker that offers an in-built news feed on their platforms. Of course you can easily look for the outcome of release from external sources but that 2 minutes lag is enough time to miss out on heavy market moves.
Secondly, if you are a heavy technical analyst, your focus will have to be on choosing a broker that will support all the technical tools you will be using in your trading. This is even more important if your tools are based on proprietary technology. Several brokers offer independent charting packages for a fee but it may not be necessary to pay for this if there are other brokers offering something similar free of charge. So, regardless of the bonus or additions you are being offered by the broker, it won’t be advisable to sign up with them if using your forex trading strategies will be a lot of hard work.
If you are among the school of thought that preaches automated trading, then it is important for you to find a broker that allows use of expert advisors. Today the metatrader platform is the most popular in this regard. There are a handful of specialised platforms that support this too but it is easier to find experts that will code your trading system for use on a metatrader platform than on any other platforms. This means that if your strategy is an automated one, brokers that offer the metatrader platform may be the only ones you should be taking into consideration.
Similarly, there are trading strategies that fail as soon as the Sunday candle is taken into consideration. If your strategy is one of these then stay away from brokers that have Sunday candles on their charts.
So in summary, your trading strategy will only work if you pick a broker with a platform that supports it. When you find such a broker, don’t forget to spend time demo trading to see how your forex trading strategies holds up.
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