Definitely not! As long as forex industry remains above the law and unregulated.
I know the enticements are too many:
I can start an account for just $1 or for no dollar. A few firms even allow me to trade $1.
And they graciously lend me money up to 400% margins - a generosity even my dad never showed.
But strangely, if I try scalping quick profits the smaller firms will close my accounts.
My stop-losses are always hit. And if I trade without stops, at least two of them engineer false spikes after secretly lowering my margin without my asking for it.
Unfortunately, the false price spikes find their way into the global price quotes giving it legitimacy.
They refuse to provide volume data claiming difficulties due to a global market and 24-hour trading. But that excuse doesn’t hold in this era of fast computing.
Price slippages, which are things of the past in stocks and commodities, are still shamelessly practiced in this so called trillion dollar industry.
So the truth is that no-commission taking retail firms are not part of that global industry but just parasites feeding on the crumbs left by the real players.
And ironically, the money for taking positions against own customers are provided by the same customers.
In books on stocks and commodities, they say only 20% of traders break-even. Then in an unregulated industry like forex trading the break-even may be 5% or even less.
May be the small investor should wait till the purely commission-based firms bring down their capital requirements.
