The Forex Noob

Currently I have demo accounts with four forex brokers. I’ll post capsules of what I find with each. Here’s a run down of what this forex noob with ForexMeta.

 

ForexMeta

 

Why I chose to test them

 

I stumbled on forex trading through the FAPturbo web site. I signed up for their newsletter, a bunch of sales pitches, and in one ForexMeta was mentioned as welcoming traders using FAPturbo. If I am going to invest in this forex robot I want to use a broker that will welcome it.

 

What I have found the positives

 

ForexMeta uses MT4 and I like it. They offer trading in Gold and I like that. Funding is easy. Live customer service via chat is nice and my experience has been positive.

 

I love the daily FXDD reports that show up in my interface mailbox! Nice touch and ForexMeta is the only broker I have found to offer it.

 

What I don’t like thus far

 

Withdrawals are a pain. Check mailed and only four per month. Seems archaic in today’s electronic world but hey, they are trying to keep the money as long as they can. Understood but poor customer service.

 

Their quotes are the lowest of the four I have going. That’s not necessarily a bad thing, they could be the most correct but it raises a red flag in my world.

 

They have a dealing desk, not ECN (Electronic Communication Network) or STM (Strait To Market).

 

I haven’t found ForexMeta listed on many forex broker review sites. They are included in few lists which makes me wonder why.

ForexMeta Quick Review

Currently I have demo accounts with four forex brokers. I’ll post capsules of what I find with each. Here’s a run down of what this forex noob with REALForex.

 

REALForex (Straighthold Investment Group)

 

Why I chose to test them

 

I was looking for ECN forex brokers and REALForex was listed as not only being an ECN broker but offering Gold as well.

 

REALForex is interesting in that it offers extremely low entry into forex trading. You can open an account for as little as $1. LiteForex offers trading in cents to help forex noobs get their feet wet without loosing their shirts.

 

Both REALForex and LiteForex  are part of Straighthold Investment Group hqed in Victoria, Mahe, Seychelles. Their offices are in Eastern Europe and Russia.

 

What I have found the positives

 

• REALForex offers a low entry into forex trading. Trade is done in dollars while LiteForex  offers a low entry and trade done in cents maximizing learning while minimizing risk.

 

• MT4 trading platform.

 

• REALForex is an STP broker. A Straight Through Processing forex broker sends orders directly from clients to the liquidity providers. The more banks and liquidity in the system, the better the fills for the clients.

 

Or are they? One forex broker comparison site lists them as an ECN broker, another STP and yet another a Market Maker. This is yet another confusing part of entering the forex trading realm. Inconsistent information.

 

• No disconnects or lags in orders thus far. Never a context is busy notice!

 

• They offer trading in Gold, Silver and a wide range of currency pairs.

 

What I don’t like thus far

 

• I emailed customer service Monday and have yet to receive a response. It’s Friday. That alone causes me to worry but I know how email is so I’ll reserve judgment ‘till I have a few more experiences.

 

• No live online customer service. You either email or call. It is so easy to add live support why would a forex broker not do it?

 

• Payments are via bank wire, they may charge as much as $20 for a wire under $500.  Other options include e-Bullion, WebMoney, CashU but no Paypal. No credit cards.

 

• The News that comes in on their interface is not English. Useless for me.

 

Reports are that REALForex  (LiteForex ) had some issues in the past have apparently remedied them. I have seen them listed highly on a number of “Best” lists, not at the top but in the 7, 6, or 5 spot.

 

 

 

 

 

 

A REALForex Experiance

Well, I just experienced a very unfavorable incident with FxPro. The connection with their server is atrocious! I have been kicked continually for 15 minutes right as action heated up with Gold. I went form being up over $240 to being down over $350 in seconds while trying to reconnect.

 

If this is typical I’m not sure I want to play with their toys.

 

10 min pass

 

I got out with a profit of $142 but lost a hundred bucks. Still had trouble with my action, received the context is busy notice three times before closing my position.

 

In two weeks of testing seven forex brokers FxPro is the first to give me a context busy. If this was real money I’d be very pissed.

 

FYI, I’m on a T1 with great connection. No other brokers is giving me disconnects.

FxPro’s Poor Connection

I am currently testing the forex broker FXPro. I like the interface, MetaTrader 4, you generally see it written as MT4.

 

I am testing FX Pro because they have MT4, because they reportedly welcome clients who use the FAPturbo and I am seriously considering purchasing it, I want to fund via bank transfer or Paypal, I want quick electronic withdrawals  and because the other night I had four different demos going from four different forex brokers and they had what appeared the truest charting.

 

Yea, all for brokers had different quotes of the three trades I was working on. FxPro quotes were 15 pips higher than the next and 25 pips higher than the lowest.

 

Why would brokers have four different quotes? That’s one of the troubling areas I’ve found in forex trading. Who can you really trust?

 

Unfortunately FxPro is not an ECN broker, meaning they have a dealing desk and a human fulfilling your orders. The worry here is that some dealing desk brokers have reportedly held customer orders if their positions were opposite the brokers. You lose money if they are trading against you.

 

Thus far here is what I’ve found with FxPro:

 

• A nice MT4 interface
• They offer gold and silver trading
• This morning a lot of disconnects
• An issue with Trade Context Busy notices when placing an order. (What the hell is that?)
• Swap expenses reducing my profits (we’ll investigate swap soon)
• I hate their web site. Confusing to navigate hard to read grey on white text.
• They are not in the USA which may not be important but I’d like my broker to be

 

I’ll get with the FxPro customer service today and test them out with some questions.

 

All in all FxPro seems to be a decent forex broker bus since I have only been testing them for two days I’ll reserve my final rating and money for a later date.

An FxPro Experiance

So I’m looking for a Forex Broker. I’ve played with a few demos, six, and have found a platform that works with my mind and know that I am interested in not only trading in currencies but also gold.

 

I’ve found choosing a Forex Broker more challenging than choosing my online broker. There are more variables that can be manipulated and therefore cost you money in Forex. Spreads and how most forex brokers get paid differ between brokers and currencies. Some forex brokers have a trading desk manned with people who actually place your orders. Apparently some are unethical and will hold your order if their position is opposite yours or trade against you costing you money.

 

Some unethical forex brokers reportedly skew quotes to their favor and manipulate their charts so that your position is negatively effected.

 

Scary!

 

There are ECN, Electronic Communication Network, brokers that utilize computers not people to fulfill your orders thereby guaranteeing you a fair trade. But does it?

 

I understand that an ECN broker is the only way to go but some nonECN brokers are highly rated by satisfied customers (we’ll talk about this in the near future).

 

Other things to look at in a forex broker are payment/withdrawal methods, Customer Service and accreditation.

 

One forex broker I was interested in only sends withdrawals via paper checks and will only send four per month. If you want a fifth they’ll charge you for it. Others will transfer money electronically with no limitations.

 

Some brokers make it easy to make a deposit with bank wire, credit card or Paypal, one I wanted to test uses bank wire but charges $20. Other payment methods are Paypal like services that I am unfamiliar with.

 

The key to choosing a forex broker, do your research and a lot of it.

 

I’ll name a few brokers here in the near future and share what I’ve found. I’ve been waiting 3 days for a customer service response from one, not a good sign.

 

Thanks for your time,

 

Jeff, the Forex Noob

Searching for a Forex Broker