How to Avoid Losing Money to Forex Brokers

Forex brokers are hated by most forex traders. At the same time, a forex trader couldn't be a forex trader without the broker.

Kind of weird, eh?

Well, it's not unfounded. I know of some good brokers, but many forex brokers are crooked. And they are dangerous to your success as a forex trader.

So, how do you protect yourself from the brokers?

1) Use a USA based forex broker. These brokers are more licensed and controlled than other brokers.

2) Search online. If you just use google you will find many reports of brokers. Now, I'm not saying that you should believe everything you read on the internet (obviously not!), but, if you get a lot of reports of some forex broker being crooked or even questionable, then perhaps you want to think twice in that regard.

3) Try trading with them. Yeah, really. Open a small account. Perhaps as small as they will let you, and trade it.

You can tell better than anyone for yourself if you trust the broker. Actually trade them and see what happens.

4) Interact with there customer support. Email them, chat with them, call them. How do they respond? How fast? Do you feel good about them? This isn't a good test by itself, but taken with all the others, this can tell you a lot about them. Are they a good company? Well, how do they treat potential customers?

5) That leads right into number 5, after you have an account with them, deal with customer service again? How are they now that you are an actual customer?
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