Forex Brokers - 2 Ways You Can Quickly Lose Your Account

Most forex traders have a love-hate relationship with their chosen forex broker. Nearly everyone will have at least one or two issues with their broker, however despite all this it's still vitally important that you stay on the right side of your broker. If you don't you may well end up losing your account and having to go elsewhere.

So what kind of things can upset your broker?

Well a lot of people will say that they hate winners. That may be true to an extent but in most cases you won't have any problems if you consistently generate decent profits. Indeed if you are really successful you may find that in some cases they may copy your trades and place them elsewhere as a kind of hedging strategy.

What they don't seem to like, however, is for you to employ a forex robot on their trading platform. This is particularly true if thousands of other traders are also using the same robot. They won't mind if it's losing money in the long run, but if it becomes successful they may not be so accommodating. Indeed they may even close your account as a result.

This is something that a lot of the sellers of these commercial robots will never tell you. It's hard enough just to find an automated expert advisor that consistently generates profits, but it's just as hard to find a broker that is willing to accept these robots.

The second way you can potentially lose your trading account is by scalping the markets. In other words placing lots of short-term trades that may only last a few minutes. This is a common problem that a lot of short-term traders run into at some point.

Unless you are using a broker that provides you with direct access to the forex markets, you will often find that most brokers do not approve of scalping simply because they do not have sufficient time to hedge your trades. So you will often find that they will only allow you to keep on scalping the markets for so long before they start making your life more difficult. For example they may widen the spreads, freeze the platform when you want to open or close trades, or close your account.

So to sum up, you really should try and resist using forex robots or trying to scalp the markets because otherwise you are at serious risk of getting your account closed down completely.

Forex Brokers
A comprehensive list of forex brokers.