Hi Y'all,
Getting around broker tricks can be tough. We all know that brokers can (but not all) use some tricks to woo new customers into trading with them. But ask the following questions and insist that they email the responses. As they can change their website without a trace, and once it is in writing it is very hard from a legal view point to take a different stand. If they refuse to answer this in writing, they are probably a dodgey broker and you won't want to deal with them. Because they know that if its in writing they are accountable, they are not accountable for their words unless it can be shown in writting.
Obviously some questions need to be orientated towards that specific broker. Like forex.com have 3 different styled trading accounts and obviously the questions below would not determine the answers unless an account type was specified.
Also in writing you can then cut and copy to this post for everyone to view.
Just replace _-_-_-_-_-_-with a name like IBFX or IBFX's and hopefully you are ok to go.
PROFORMA
Hi _-_-_-_-_-_-,
Interested in opening a small live account, but I need to know the answer to a number of questions first.
1) What is _-_-_-_-_-_-'s minimum account size?
2) Besides spreads what other commissions or fees does _-_-_-_-_-_- charge (sometimes the broker may have a range of account types make sure you specify what account type you are looking at)?
2a) If so, how much per 1 lot traded? Or how much per trade?
2b) Are there any other commissions or fees?
3) Does _-_-_-_-_-_- allow all trades to be hedged?
4) Does _-_-_-_-_-_- allow all trades to have trailing stops?
5) With _-_-_-_-_-_- demo prices, are they identical to the live trading prices at all times?
6)Do spreads at _-_-_-_-_-_- widen ever?
6a i) If so, how do they differ? (a variable spread or a fixed wider spread)
6a ii) If a fixed wider spread do you have a table of expected changes?
6b) If so, when do they differ? What GMT time do they usually differ in? Or is it only during news?
7) Does _-_-_-_-_-_- offer re-imbursements or spread reductions for high volume traders?
7a i) If so, at how many lots traded per month, do spreads get reduced for traders? What size are the spreads?
7a ii) If so, at how many lots traded per month, do re-imbursements start to occur? What size are the re-imbursements?
8) The currency pairs that I can see on the demo account, are they the only pairs that _-_-_-_-_-_- make available when live trading?
9) Does _-_-_-_-_-_- allow all indicators, EAs and scripts for MT4 to be used at all times?
9a) If not, can you give me a list of indicators/scripts/EAs that you ban or control the use of?
10) With deposit currencies, what deposit currencies does _-_-_-_-_-_- allow?
10a) If different to minimum account size do you have a minimum deposit size, for each respective currency?
11) How often and when are _-_-_-_-_-_- trading servers closed down?
12) Does _-_-_-_-_-_- have an automated instantaneous execution of all trades, or is there a need to go through a trading desk / operator?
13) What is the standard leverage for each of _-_-_-_-_-_- accounts?
13a) OR Does the leverage change as trade account size increases / decreases?
13b) OR Do you have different lot sizes for so called 'Standard' and 'Mini' accounts? Such as some brokers have 1 lot moves $10000 for accounts that they term as mini-accounts.
14) In which countries are _-_-_-_-_-_- regulated? Which websites and authorities can I check this with?
15) Which country are _-_-_-_-_-_- servers based in? Security of your info can depend on where the servers are based.
16) What is _-_-_-_-_-_- policy on margin call?
Happy trading...
Getting around broker tricks can be tough. We all know that brokers can (but not all) use some tricks to woo new customers into trading with them. But ask the following questions and insist that they email the responses. As they can change their website without a trace, and once it is in writing it is very hard from a legal view point to take a different stand. If they refuse to answer this in writing, they are probably a dodgey broker and you won't want to deal with them. Because they know that if its in writing they are accountable, they are not accountable for their words unless it can be shown in writting.
Obviously some questions need to be orientated towards that specific broker. Like forex.com have 3 different styled trading accounts and obviously the questions below would not determine the answers unless an account type was specified.
Also in writing you can then cut and copy to this post for everyone to view.
Just replace _-_-_-_-_-_-with a name like IBFX or IBFX's and hopefully you are ok to go.
PROFORMA
Hi _-_-_-_-_-_-,
Interested in opening a small live account, but I need to know the answer to a number of questions first.
1) What is _-_-_-_-_-_-'s minimum account size?
2) Besides spreads what other commissions or fees does _-_-_-_-_-_- charge (sometimes the broker may have a range of account types make sure you specify what account type you are looking at)?
2a) If so, how much per 1 lot traded? Or how much per trade?
2b) Are there any other commissions or fees?
3) Does _-_-_-_-_-_- allow all trades to be hedged?
4) Does _-_-_-_-_-_- allow all trades to have trailing stops?
5) With _-_-_-_-_-_- demo prices, are they identical to the live trading prices at all times?
6)Do spreads at _-_-_-_-_-_- widen ever?
6a i) If so, how do they differ? (a variable spread or a fixed wider spread)
6a ii) If a fixed wider spread do you have a table of expected changes?
6b) If so, when do they differ? What GMT time do they usually differ in? Or is it only during news?
7) Does _-_-_-_-_-_- offer re-imbursements or spread reductions for high volume traders?
7a i) If so, at how many lots traded per month, do spreads get reduced for traders? What size are the spreads?
7a ii) If so, at how many lots traded per month, do re-imbursements start to occur? What size are the re-imbursements?
8) The currency pairs that I can see on the demo account, are they the only pairs that _-_-_-_-_-_- make available when live trading?
9) Does _-_-_-_-_-_- allow all indicators, EAs and scripts for MT4 to be used at all times?
9a) If not, can you give me a list of indicators/scripts/EAs that you ban or control the use of?
10) With deposit currencies, what deposit currencies does _-_-_-_-_-_- allow?
10a) If different to minimum account size do you have a minimum deposit size, for each respective currency?
11) How often and when are _-_-_-_-_-_- trading servers closed down?
12) Does _-_-_-_-_-_- have an automated instantaneous execution of all trades, or is there a need to go through a trading desk / operator?
13) What is the standard leverage for each of _-_-_-_-_-_- accounts?
13a) OR Does the leverage change as trade account size increases / decreases?
13b) OR Do you have different lot sizes for so called 'Standard' and 'Mini' accounts? Such as some brokers have 1 lot moves $10000 for accounts that they term as mini-accounts.
14) In which countries are _-_-_-_-_-_- regulated? Which websites and authorities can I check this with?
15) Which country are _-_-_-_-_-_- servers based in? Security of your info can depend on where the servers are based.
16) What is _-_-_-_-_-_- policy on margin call?
Happy trading...