Forex Trading With or Without a Broker
There is a myth making the rounds in the Forex universe. This rumor that’s whispered and spread from keyboard to keyboard over cyberspace states that in order to take part in Forex trading, you must have a broker.
A rumor is all this is because there’s no truth in the must part of the rumor. You can do your Forex trading with a broker if you choose to do so, but it certainly isn’t a must. Many traders act without a broker and conduct their trading business successfully.
Even if you don’t have the first clue about how Forex trading is done, and you’ve never done it, you still don’t have to have a broker if you don’t want one. Can you gain from having a Forex broker in your corner?
Yes and no. It depends on whether or not your Forex broker is smart about trading and whether or not he’s going to be smart about trading for you. Some Forex brokers look at those who want to partake of trading currencies as another zero on their own paycheck and they will actually work against you in a practice known as sniping.
Sniping is a practice committed by some Forex brokers who in effect cheat you out of profits. Yes, it’s dishonest and no, you have no recourse whatsoever to protect yourself from sniping done by a Forex broker bent on taking advantage of you.
There are decent Forex brokers who do help those are involved with Forex trading or want to get involved with Forex trading. These are professionals in the trading world who value both their customers and their own reputations.
They would no more think of cheating you than they would themselves. Most Forex brokers are legitimate in the trading world but it’s the actions of a few bad apples that tend to spoil the bushel.
You can learn about Forex trading and you can trade without going through a broker if you’re afraid you might encounter one who isn’t what he claims to be. But on the other hand, an honest broker brings to the table his expertise with the Forex.
While Forex trading with a broker has the advantage of using his expertise to aid you in making trades, sometimes this leads to a tendency on the part of the trader to ignore getting a Forex knowledge on his own. If you’re not knowledgeable about Forex trading, then you wont know if the moves your broker are making are for your good or his.