From time to time, the conditions of a Forex broker change. A reliable trade broker is:
- updating its platforms;
- changing their trading conditions due to some new regulatory conditions.
Others allow customer service to deteriorate.
Some of these changes may go unnoticed by traders, some will cause minor inconvenience, but other such changes will cause some traders to leave the broker and start looking for a new one. Let’s analyze the possible reasons for refusing the services of a broker.
Best Tips to Change a Broker
Delays in Deposit and Funds Withdrawal
If a broker advertises fast withdrawals within 24-48 hours, but you have to wait a week to receive your hard-earned profit from the company, then something is wrong with the company. Perhaps this is not critical – after all, it could just be some kind of bureaucratic mistake. However, traders, like any other people, prefer to receive their money on time, and any delay in withdrawing funds can cause emotional and material stress. Many traders often experience such delays at brokers, and rarely leave brokers because of this. Perhaps because delayed withdrawals are usually the exception, not the rule.
Slow Deposit Processing
When a trader deposits money into his trading account, he expects fast execution. Especially if it is done to open a specific trade at a specific time. It is very important to quickly execute with a decrease in the level of collateral. Any delays in the process can be detrimental in this case. Fortunately, most brokers process deposits very quickly so that clients can start trading as soon as possible.
Changes in the Technical Conditions of Trading
The addition of a new trading platform is often seen as an advantage for a broker. Unfortunately, it is sometimes added instead of some other platform that traders are already used to. For example, many traders would be shocked if their broker forced them to change MT4 to MT5.
Increasing the Minimum Trade Size
When a broker decides that it should move away from small clients and encourage large trading volumes, it may decide to increase the minimum traded lot size. This is bad for traders, but it’s hardly a disaster if you can’t afford to trade the new low. Another big downside is that you lose the flexibility to choose your position size, which is a requirement for a sound money management strategy.
Elevated Stop-out Level
The stop-out level is the ratio of your account equity to the margin you are using that forces you to close your positions. A higher-stop-out level makes it harder to hold large positions when the market moves against you. This can be critical in many situations and with many strategies, especially those that avoid a stop loss.
Usually, if you do not conduct risky trading experiments, and the broker does not raise the stop-out level above 100%, increasing this level will not hurt you. Otherwise, this is a good reason to start looking for another company to trade with.