bytrend Promotion

We can probably compare current prices and swaps between brokers to find which is the fairest of them all, but we cannot do so all the time.

That's why it cannot be totally avoided.

Continue Reading at Can ECN Brokers Cheat on You?

Legitimate brokers may decline withdrawal requests if traders have an ongoing trading position, often called a floating position.  Additionally, many brokers prohibit withdrawals with floating positions because removing funds can significantly reduce the free margin in your account, leaving you more vulnerable to a Margin Call (MC).

Continue Reading at Top 3 Forex Broker Rules Most Violated by Traders

Market makers are the parties that provide liquidity and quote both the buy and sell rates. They can be individuals, brokers, banks, hedge funds, and other financial firms. Large banks in particular are the master market makers.

One simple example of the market-making practice is a foreign exchange transaction in a local bank. This is very similar to the business activity of market makers in forex trading. Let's see the illustration below.

Dolan is in need of USD currency for a trip to the USA. He carries the local currency EUR to Bank Z to be exchanged with USD. In this case, Dolan wants to buy USD and Bank Z makes the market by selling USD and buying EUR.

One month later, Dolan returns home and wants to exchange his remaining USD with EUR. He visits Bank Z again, and this time Bank Z makes the market by buying USD and selling EUR.

Here, Bank Z generates profits from the differences between the sell rate and buy rate.

Continue Reading at Are Market Maker Brokers Always Bad?

The issues that are often mistaken for broker problems are interrupted trading orders, slippages, requotes, spread widening, and withdrawal issues.

In fact, most of these issues can be caused by market volatility.

Continue Reading at How to Deal with Problematic Brokers in 6 Easy Steps