It must be mentioned that sometimes some brokers can trade against their clients, but for making their own profit. Nevertheless, the brokers’ activity is regulated by such organizations as CFTC and NFA, and now they are imposing stricter requirements on forex brokers’ business, which has led to the unreliable and questionable brokers leaving the market.

Still, the taking into account the number of inexperienced traders entering forex market in the pursuit of quick money, the amount of forex brokers appearing to be cheats remains high enough.

So, what are the features by which a reliable good forex broker can be distinguished from a scam? There exist some pieces of advice helping to choose the right forex broker who will manage a trader’s money properly and profitably.

Firstly, when a forex trader starts seeking for a forex broker, he/she inevitably turns to the Internet as the largest and most available source of information. At the same time it is very important to be able to filter trough the loads of information about the forex brokers that turns out to be false. This happens due to the fact that some forex traders whose trading strategies appeared to be initially wrong and unprofitable tend to blame their forex brokers for that.

However, often the key reason of losses is not the forex brokers’ fault, but the trader’s inability to grasp the forex market dynamics and the lack of knowledge and skills. Forex market is a very rapidly changing phenomenon, and, what is more, it is very susceptible to many outside influences, so, we do not always get the price that we want, and this is due to the external factors and not to the broker’s lack of professionalism.

A good forex broker is supposed be able to provide all the necessary explanations to the client and be always available for communication. What is more, a client must always be able to withdraw funds for the trading account. Failure to carry out at least one of the above mentioned conditions points to the fact that a forex trader should be wary of such forex broker and consider refusing his/her services.

Of course, before choosing as broker a certain research on his/her reputation and trading documents should be done, and if the results are satisfactory, then it is still recommended to open the mini account or just to put a small amount of capital on an ordinary account. If the trading goes well over time, more funds can be deposited.

On the whole, it should be kept in mind that not all forex brokers turn out to be cheats and in fact good forex brokers are primarily interested in establishing long-term relationships with a client and thus making a profit.

So, if you want to trade on FOREX (on any forex platforms), you should realize that it’s very important to have an effective strategy of management. Working with margin trade, money management guarantees secure existence for a trader. Parity between average profits and losses should be strictly observed. In this case, trader doesn’t play with his equity, his works with it! Success of each person depends on individual features of each trader on FOREX. Therefore, every trader makes his own trading strategy, based on FOREX money management.

Considering money management, let’s see the main fundamentals of this process and practical advices on formulating your own money management system on FOREX.

1. Necessary reserve, needed for unusual situations, should be not less than 50% from invested equity. It’s the first rule of margin definition for opening of orders. However, many analysts advise even less 5%-30% from invested capital for safe operation.

2. One principle helps to avoid bankruptcy: try not to invest more than 10%-15% for one market and not to invest more than 15% into one order.

3. To consider the norm of risk as 5% of invested money. In these case trader losses small part of his equity with the unprofitable order.

4. Don’t forget to use optimal investment of the fund, it should be diversified in some degree. In this case, losses of one order can be covered by profits of another.

5. Money management should be executed with the concentration and diversification. If you open orders on some different markets at the same time you can reach the safe allocation of funds.

6. Definition of stop loss and take profit levels. When you are offline, put your stop orders, in order to avoid huge losses or even bankruptcy or get additional profit. Making it, analyze the situation and predict the future movement of price, according to the indicators and valiality of the currency pair.

7. The definition of possible loss or profit. Consider the chance to get profit against loss as 3:1. If you can’t do it, don’t open the order.

Realizing FOREX money management, should seek to bring profit to the maximum, keeping profitable orders as more as possible. Therefore, making some profitable orders you can have goods results.

8. Try to follow the rules of opening and closing the orders.

9. Don’t try to revenge. In this case, you are impressed and can’t analyze the situation. There is a well-known joke: “dad didn’t scold his son that he’d played cards, but about, he revenged.”

10. Timely rest. Don’t work when you are exhausted, no matter how tempting the situation may seem.

Considering these rules and advices, you can trade profitably on FOREX and try to develop your own money management strategy, that possibly give you good profit in the future.

Every day more and more people find out about FOREX or try it. Everybody wants to trade and have profit. However, little know that to be a good trader it’s necessary to know basis of analysis, to consider all the conditions and to analyze the situation professionally.

However, even if you have all the basis knowledge, your trading not always can be profitable. As usually it’s connected with the unfair work of broker company, which sometimes “help you to trade”. Giving to his client another prices( different from market prices), don't allow to trade when clients want( because it's not profitably for a company at this time) or make him a "kitchen"( when the client think that he trades, but really he trades only virtually).

So automatic forex trading system is one of the ways to prevent it. System works faster than a broker can control your trading, and makes more transactions than trader. As the result, more orders, more profit.

Another main precondition is that FOREX works 24 hours, while a trader can’t do it physically. So he can sleep when FOREX automatic trading system earns money.

FOREX market also can provide you the opportunity to make lots of money, you have to consider the fact that the risks are equally great as it is with the potential in making a lot of money. This means that you will have as many chances in losing money as well as making money in the FOREX market. Also, because the market is so large, individual traders aren't able to maximize its full potential. They simply cannot handle the amount of data that is constantly changing every second of the FOREX market located all over the world.

However, it is important to keep in mind that no method can be always right and provide flawless results in all conditions. The same is with the moving averages method that has both advantages and disadvantages: on the one hand, it allows seeing quickly if the price is above or below moving average. On the other hand, if to make a constant use of this method in order to identify entry/exit points, there will certainly be false forex signals.

However, if the major trend in the forex market is identified correctly, sticking to it helps a forex trader to concentrate on the best forex trading opportunities and to take advantage of them.

However, though the opportunities for money-making that forex market provides are great, the novice traders face a lot of decisions they have to make if they want to become successful in it, for example, one of the major decisions is when to enter and exit the trading process. Certainly, some learning and becoming aware of the basic concepts and trading methods has to be done before starting actually to trade on forex.

In the Line with the Rest

It is considered that the best forex trading option for the small individual forex traders is to trade on a short-time basis, since it reduces the amount of time when their capital is at risk. The next choice for the trader is to choose the currency pair he/she wants to trade and decide whether he/she will be bullish or bearish, that is, he will either sell or buy the currencies. It is here where the experienced forex traders unveil a small secret: “the trend is your friend”, as the saying among them goes.

The key thing for forex trading is to define the major trend in the forex market as far as a certain currency pair is concerned and to keep in the line with it. If the market is heading down, it means that the forthcoming fall of prices is in store of the traders, so the market will be bearish and the best option will be to sell the currency. However, on the other hand, if there is an uptrend in the forex market, it is characterized by an enthusiastic buying (this is a bull market).

Definitely, it is much simpler to gain profit if to follow the direction of the major trend in the market than against its direction.

The great thing about automatic trading systems for FOREX is that it is able to see and handle data in the FOREX market that changes every minute. Of course it’s difficult to do manually.

Another benefit that you can have with automatic forex trading systems are that you will be able to execute numerous orders at the same time. This means that you, as a single trader, will be able to trade in different FOREX markets in different time zones at once. It’s almost impossible to do manually. However, with automated forex software, you will be able to trade easily in different FOREX markets located in different parts of the world.

Automated FOREX trading systems give you the great ability, just be sure that system that you want to buy is really profitable and comfortable for you.