· # The Forex trader opens a Forex account at our Forex brokerage house. Today there are various types of brokers and it will be a good idea for the potential Forex investor to research the different types of the Forex brokers and choose the one that will fit his or her investment needs in the best way. The broker account that the investor opens is owned and completely controlled by the investor.
· #The forex broker we have chosen is a non-dealing desk broker and should have an ECN (Electronic Communication Network) trading platform. This is very important to avoid brokers taking a different side of the market.
· #After Opening a forex account with the preferred broker, the investor then authorizes us to make trades on their trading account. A s a rule, the forex broker has to approve the limited power of Attorney which could be revoked at absolutely any time and in this case the trading will be stopped at the same moment.
· #The Investor empowers the forex broker to pay a certain percentage of new profits on investors account to the forex manager at the end of every month in the form of compensation. New profits are profits made above the previous high watermark of the account. In some cases the forex managers charge a yearly management fee 2% which is the form of a percentage to the total balance of the account.
· #The investor is providing a complete access and monitor of his or her account.
· #The investor is responsible for determining his or her own risk allowance and what they consider maximum draw down with advice from us. This is very important in managing your account balance.
