Similar to stock trading, you need a broker account to be able to trade particular securities. For example, you need a stock trading account to trade stock. You need a Forex Trading account to trade Forex.

There are many Forex brokers available in the market. Some could be very famous and for some, others might not have heard of it at all. All Forex brokers will have broker’s risk even the most reputable one. No matter how famous are the brokers, there is always a chance of winding down due to various reasons. For example, Lehman Brothers, which was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), with about 25,000 employees worldwide, was founded in 1850 and filed for bankruptcy in 2008. You must believe that anything is possible in this world.

Manage your Broker Risk

However, if you want to perform trading, this is the risk that you have to take, you just need to ensure you have a good approach to handle and mitigate the risk. You won’t stop driving because you worry about accidents. You should also not stop trading because you worry about your broker’s winding down.

To manage the broker’s risk, our approach is to have strict selection criteria to select our broker and also diversification.

The following are the strict selection criteria that we used to assess our broker.

  • The broker must have a long enough history, at least 10 years and above.
  • We tested ourselves to ensure no issues on deposit and withdrawal.
  • We assess the trading condition of the broker to ensure they are competitive compared with other broker’s offers.
  • We will only recommend the broker that we are using ourselves.
  • We recommend brokers that can work well with our Expert Advisor.
  • We look for brokers that provide a unique competitive advantage.

As of now, we have 3 recommended Forex Brokers, with each having its unique competitive advantage.

  • FBS – our most recommended broker. It provides a swap-free account for Malaysian and it provides accounts with leverage up to 1:2000. Very fast withdrawal. We normally receive the funds in the bank within hours after we send in a withdrawal request. They also work closely with us to provide extra benefits to our clients. We have just organized a 2023 Year End Lucky Draw with them.
  • FPMarkets – Reputable Forex Brokers from Australia. It can provide leverage of 1:500 for accounts with large capital.
  • Admiral Markets – The only broker in the Market can provide a Trade Account and Invest account using MetaTrader Platform. Invest account allows our client to buy Assets ( not CFD) and hold them for the long term. Allowing our client to perform profit recycling to get Dividend Income.
Come to my page!

Lastly, some tips to reduce your broker risk.

  • Diversify – Once you are comfortable with one broker, start to assess another broker and open a secondary broker account or even a third one if you don’t mind.
  • Control your capital in one broker – On and off withdraw your profit to your bank. Don’t put all your eggs in one broker.

Hope this helps all of you to manage your broker’s risk. Happy Trading!