The Musings of Faith

Now that FXCM and Gain Capital (GAIN) have released earnings there is a new wave of banter demonizing forex trading. As a forex trader, it is hard to disagree with it. The leverage in this market is both scary good and scary bad. The hours can be long. The volatility, when present, breath-taking. And then there are the brokers.

I have ranted about brokers before. When the CFTC decided to save us from ourselves (that’s another rant), my broker was swallowed by GAIN. I was given the option to roll my account over. I opted to close it.

I’ve been trading long enough to have traded with both brokers and know to stay far away from market makers. FXCM and GAIN are the largest and worst of the lot. The IPO of both firms raised my eyebrows at the time. But now I love that they went public. What I’ve been saying is now supported by their very own numbers:

Very scary, yes. But FXCM and GAIN are 2 of hundreds. There plenty of good brokers out there but it will require time to find them. The most crucial decision you will make in your trading is who you decide to trade with. There are many brokers out there who are far fairer and better performing than FXCM/GAIN. Your most successful traders are not trading with these guys. Yet FXCM and forex.com (GAIN) are recommended again and again as a forex broker with which to place your money. I don’t make broker recommendations but I will say this:

DO YOUR DUE DILIGIANCE.

The decision to trade with any broker is one you, and you alone, can control in a business wrought with uncontrollable factors. If you are not happy with your broker, in addition to your complaint or rant, MOVE YOUR MONEY. It is assinine to trade with any market maker. Find the brokers who are not. Do the research necessary to find the broker that fits your trading style. Your trading style has broker requirements in order to be successful. Figure out what those are and find the broker who can deliver on them.

Forex trading is fantastic. Sure, it is treacherous but if you know what you are doing and willing to work HARD, it is the only way to trade.

Read also:

• Confessions of A Forex Trader: I HATE Changing Brokers (The Musings of Faith)
• CFTC Finalizes Regulation for US Retail Foreign Exchange (StockTwits FX)
• Retail Forex On The Media - The Message Is Clear, No Place For Amateurs (ForexStreet.net)
• Foreign Currency Trading or an RX for Retail FX (Points and Figures)