respected guru ,

my question to is that how can i trade with out risking much money? where can get the accurate prediction, strategies, and tips.

i am going to trade in live account.

Thank you for your questions, but I'm not able to help you here, since your request is basically asks me to select a broker and give you a strategy to trade and make profits. Neither condition can be achieved with my help, I'm afraid, because I don't recommend brokers (it is against the website policy to give advantage and promote any of the brokers) and I certainly can't help you become a trader right off the table, because it is evident that you are a beginner to Forex, and, therefore, there is a lot of learning for you ahead before you can trade with real money.

My best advice would be to start learning Forex step-by-step by opening a demo account with any Forex broker. You can trade Forex while living in India. Traders all over the world can pick a Forex dealer not only from their own country, but from any country in the world, while the laws, as well as religion, is never a barrier, because the needs of all traders are met and respected by many brokerage companies.

Take it one step at the time, learn about Forex trading and currency technical analysis in particular and you'll be on your way to modeling a trading system and starting your trading career at first on a virtual account, and later on a live account.

Dear BG,

Thank you so much for your sound analysis of the 3 brokers I am considering as my Live Broker.
Another (-) for MB Trading is they also don't allow hedging.

Since MB Trading invalidated both my Demo trading accounts that leaves me with only 2 brokers which I am still (at this moment) demo trading with.

On both Demo accounts over a 3 days trading, in Tadawul I managed to bring the Demo account from USD1,200 to slightly over USD1,400, and in FXopen, from USD2,100 to over USD4,700. Both platform execution are behaving well, and so I will flip a coin and see who will be my ultimate broker.

Thanks again, BG, and all the best.

RahmanSL - Malaysia

Hi Ibrus,

thank you for a good question.
It depends on a broker, but here are the main pros and cons to consider:

When opening an account with an introducing broker (IB):

PROS: you may get the same conditions as with the prime broker.
CONS: but, you also may not, and the most unpleasant of all would be when spreads with the IB are higher than with the prime broker. This is explained by the fact that an IB earns a commission from his prime broker in the form of the pip difference quoted to traders.

PROS: deposit requirements to open an account with an IB could be lower, also it is possible to get a higher leverage.
CONS: deposit requirements could be higher than with the prime broker, depends on an IB.

PROS: as a rule, with an introducing broker you are going to get the best customer support, almost like VIP support, which is not always achievable with the largest prime brokers, who have thousands of clients and can't dedicated an extra time to each client.
CONS: none. If an IB can't provide an exceptional support, there is often no other significant benefits to choose an IB instead of their prime broker.

Prime Forex is a dealing desk broker, not regulated.

Client Agreement Quote:
"As a result of acting as Principal Customer should realize that Prime4x maybe acting as your counter party and that Prime4x maybe placed in such a position that a conflict of duty occurs."

Also, if you want to scalp, this broker won't allow scalping much, although initially scalping is allowed.

The rest is similar to other brokers: small deposit and micro accounts, fixed spreads & familiar MT4 platform.

10 Questions to Ask Your Broker

If you don't know the answers to most of these questions before opening an account with an FX market maker, chances are that you are not making the right choice. There simply aren't very many brokers out there with good answers to these questions; therefore, unless you are lucky enough to have arrived at one of the better ones, you are probably paying too much for something below average.

1. Are you regulated?
If so, by whom and in what jurisdictions?
What is your NFA number or other regulator ID number?
Do you have any regulatory citations? If so, explain them.

Why this Matters:

Regulation is the single largest determinant of the security of your funds, assuming they are not insured. Thankfully, the number of unregulated forex firms is falling. However, there are still a number of loopholes that companies use to avoid regulation. All of them leave the client unprotected in many ways.

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2. How large is your company?
What amount of capital does your firm have above its obligations?
How many client accounts do you have currently trading?
How many client accounts have you serviced?
How long has your company existed?
How many languages do you offer service in?
How many office locations do you have worldwide?
How many employees do you have?

Why this Matters:

This is a much more important factor than most retail clients realize. If your funds are held in the name of your broker, which is normally the case, then your funds are at risk if your broker goes bankrupt. It's size and capitalization/solubility are direct factors in determining how likely it is to fold (go under).

Size isn't everything, however. Case in point:

One of the largest retail FX market makers around--RefcoFX Associates LLC--froze client funds for several months and returned a small percentage of client balances due to the bankruptcy of Refco LLC. Which means that you should seek, and in the current environment, demand, that your broker is as regulated as possible, holds funds in your name rather than the its own, and best of all, offers government- or bank-sponsored insurance on client funds. If your funds are not protected from bankruptcy on the part of your broker, what is the point in focusing on making good trades?

Many brokers will claim that Fidelity 14 bonds protect your funds. Look closely here: most firms have these, but to our knowledge they only protect against fraud on the part of your broker. They do not protect clients against bankruptcy on the part of the market maker. RefcoFX (see above) posted F-14 bonds and they did not protect client funds.

As a rule of thumb, multiple layers of protection is best.

If you have a large broker, great.

If you have a large, regulated broker, better.

If you have a large, regulated bank, better.

If you have a large, regulated bank or broker with a bank guarantee on funds, even better.

If you have a large, regulated broker with a government-guarantee on funds, best of all.

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3. What is the legal name of the counter-party to my trades?
Is this the same as the name I am depositing funds under?
Is this the same as the name of the regulated entity?
If your platform links me to various banks or liquidity providers (i.e. "no dealing desk") how do you control the quality of execution?
Do you allow investigations of disputed trades? If so, how do you handle them?

Why this Matters:

This may seem like a minor point. However, this is as important as the spreads you are offered. Why? Because a firm's policy on crediting client's accounts in the event of a trade error on their part can mean a difference of thousands of dollars in a single trade.

If you deal with a multi - bank or multi-counter-party platform, it is very likely that your account will not be credited if something goes wrong with a trade (even slippage of 50 pips). If you deal with a large, reliable, single counter-party, it is more likely that your voice will be heard, although the process of trade investigation is time-consuming and in many cases frustrating.

Be sure that the legal name of the counter-party to your trades matches the name of the party you are sending funds to, the entity listed in the regulator's records, etc.

One more thing: getting a "match" is not enough. Make sure you understand where your trades are routed to, and do not allow any broker, bank, or ECN to avoid the question. If you are dealing on a no-deal desk platform, chances are high that your trades will not be investigated to your satisfaction. Keep in mind that this is appropriate for many clients, who prefer the lower-cost solutions over the long term and are willing to give up other factors in exchange for lowest price.

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4. What exactly is protecting my funds?
Are they held in the broker's name, or in my name, at the bank?
Are they segregated, or only separated, from other client funds and from company funds?
Is there any specific insurance protecting my funds?
What happens to my funds if your company becomes insolvent (bankrupt)?

Why this Matters:

This one should be obvious. Foreign exchange is becoming more and more regulated, but until it is illegal for a forex firm to open up shop without being regulated (particularly in the United States), it is best to investigate exactly what measures your broker or bank has taken to ensure security of funds, so that your funds are not compromised or placed at more risk than necessary.

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5. How are my trades executed?
Do you have a dealing desk?
Are all trades executed automatically, or does a dealer monitor execution at times?
If you do not have a dealing desk, who are the liquidity providers and how many are there?
Are you opposed to certain styles of trading such as scalping (ultra-short term), picking (attempting to improve your entry price based on multiple price feeds)?

Why this Matters:

To understand why brokers and market makers have practices like dealer intervention (confirming a trade for price and size prior to filling the order) you have to think about things from the standpoint of the market maker. They are of course a business, and nearly every policy they implement is arranged so that they are able to make a profit. With things like customer satisfaction and special features, this can work in the client's favor. With execution, however, the broker's gain can be your loss, and vice versa.

If you are in and out of the market in seconds or minutes, and your broker is not offsetting that risk in the meantime, then it's very likely they are losing money on your volume. If that is the case, it is to be expected that they will institute a practice (dealer intervention, re quotes, slippage, entry order restrictions, stop/limit restrictions, increased spreads) to ensure that they remain profitable on your trades.

The solution: find a broker who does not penalize any type of trading, or who at least is not opposed to your style of trading. Bear in mind, however, that this issue is one which is rarely discussed in complete openness with a sales representative. Most representatives have incomplete information or are only allowed to reveal part of what they know about their firm's execution practices. In the end, the only surefire way to judge whether a broker will punish you for your trading style is to test it on a live account--hopefully in very small amounts and without risking a large amount on your trades.

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6. How does your level of support and service compare?
Can I trade over the phone if necessary? At what cost, and are there any restrictions to doing so?
How fast is your response time to phone calls, emails, and instant messages (ask, then test this yourself)?
What are your service hours? Can I contact you quickly and easily during market hours? On the weekend? (test this)
How qualified are your service and sales representatives to answer my questions (test this)?
How fast do you process paperwork, account changes, deposits, withdrawals?
What types of changes to my account can I process or request online, what which require signed paperwork?

Why this Matters:

Prior to opening an account, funding and withdrawing, experiencing an issue with technology or a trade, and working with a broker as a client rather than as a prospect, it is difficult to answer this question.

One of the best ways to do so, however, is to act like a client, contact (phone, email, instant message, voice mail) a firm, and see what their response is. Service is a factor that seems as though it can be sacrificed, until it actually comes into play. See how fast a message is responded to, whether a firm's representatives are available and knowledgeable at odd hours or on weekends, and whether they process your application paperwork in a timely fashion, prior to sending funds.

Don't let this one become a deal-breaker, but be sure you understand what you are getting into in terms of support quality before making a purchase (that is what opening an account is).

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7. What are your spreads on spot pairs , forwards, options, and swap rates?

Are your spreads variable or fixed?
Do you provide historical data showing your spreads?
How do spreads differ based on trade size? What changes when I execute 1K, 10K, 100K, 1mio, 10mio, 50mio?
What are your spreads on overnight swaps (i.e. positions rolled over to the next trading day, positions held open long-term)?
How is interest on positions held overnight calculated?

Why this Matters:

On spreads:

This is one of the most hotly debated areas among clients and brokers. As a rule, all parties overweight spreads in any discussion. Brokers overweight them in their pitches and marketing materials, and prospective customers overweight them in their choice of a broker.

One does not know the quality of the spreads one is getting, the liquidity (size) available on those spreads, the consistency of the spreads, or the actual spreads themselves until one trades LIVE with a broker or bank.

To truly analyze spreads, open more than one live account and observe spreads during all market conditions over at least one month.

Then begin trading in small size, and eventually increase size to ensure that the quality of execution and the liquidity available is adequate for your trading needs.

The market environment has changed drastically thanks to traders' intense scrutiny of spreads. This means that a firm can attract clients by offering seemingly razor-thin spreads, without any scrutiny of other factors that matter more. Witness Crown Forex (http://www.crownforex.com) and Dukascopy (http://www.dukascopy.com/) both of whom are relatively new entrants to the market yet offer spreads as low as .5 pips, with several hundred million of apparent liquidity the case of Dukascopy.

How is this possible? Is it plausible? One cannot know until one witnesses their spreads in a funded account during diverse market conditions, and eventually trades increasingly large size on those spreads, again across diverse conditions.

On swap rates:

There are a few different ways that brokers and banks account for the interest they charge on positions held long-term or rolled over to the next trading day. Without going into a detailed explanation, suffice it to say that the main factor is the spread between the bid and the ask (just like in the currency pairs themselves). If your broker charges $6.00 per night for you to hold a trade open, and pays you $5.00 per night on the exact opposite trade, then the spread is 20%. $1 / $5 = .2 or 20%. If your broker charges you 7.00% to hold a position, and pays you 5.50% to hold the opposite trade, the spread is 27%. 1.50% / 5.50% = .2727 or 27.3% rounded.

While it is difficult to make a true apples-to-apples comparison in this area, the better brokers provide up-front information on how much their swap rates are marked up relative to inter-bank levels.

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8. Fees, etc.: List all your fees.

Do you pay interest on unused funds, or unused margin?
At what rate, and how can I keep track of it?
What is the cost of withdrawing funds?
Do you offer any free methods of withdrawal? Any restrictions on them?
What other fees do you charge? For opening, closing, maintaining the account?
Are there any other requirements to avoid additional charges (i.e. minimum trading volume per month)

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9. Does your firm have Introducing Brokers (IBs)?

Why this Matters:

Market makers often pay other firms to bring them business. This is not at all unusual, rewarding others for referring your firm business is a common practice in many industries. In FX, however, it results in a massive hidden cost to you, the trader. The biggest portion of the market maker's profit comes from the bid-ask spread. Some firms are able to make only a portion of a pip per trade. Others may aim to make a full pip, two pips, or even several pips.

If a firm introduces a client to your broker, your broker must compensate that firm. Normally, brokers give up a portion of the spread--a so-called rebate--to the IBs. For very large or important IBs, the firm might give up as much as a full pip. This means that if you are not getting additional, and very valuable, services from an IB, then your broker is making a full pip more than they otherwise would.

Think of it: every trader with a modicum of sense realizes the importance of cost to his bottom line. Why pay 3 pips on EUR/USD if you can get it for 2? Most fail to realize that the biggest and fastest way to reduce spreads substantially (by a full pip or more) is simply to trade with a firm that doesn't pay IBs to bring it business.

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10. What features or benefits does the company provide?

What is special about this broker?

Contests, charts, relevant news, trading advice, education, technology, trading platform, analysis, and anything providing a better trading experience do affect the quality of your experience trading.

Why this Matters:

Small things can make a big difference. Some companies have trading platforms that only compatible with PC computers, and not Mac or Linux. Some companies have poor charting and news. Other companies just simply offer nothing extra to give to the user experience.

Take a look at this list of features each firm can offer, but can vary in quality:

- Web Based Trading Platform
- Downloadable Trading Platform
- Contents to win extra prizes
- Trading advice
- Trade Signals
- Charts
- FX Related News
- Currency pairs beyond the majors
- Easy reporting
- Trade strategy programming