Important Questions to ask a Forex Broker

Podcast:

#389: Important Questions to ask a Forex Broker

In this video:

00:22 – Joined by Ben Clay at Blueberry Markets

01:05 – How safe are your funds?

02:13 – Order types and hedging

03:30 – Can EU traders work with Blueberry?

03:56 – Can we get our money back if the broker goes bankrupt?

05:18 – What happens when you get sudden fluctuations in the market?

07:06 – Can some trades missed being filled?

08:19 – What makes Blueberry Markets different?

10:08 – Email me if you’d like to ask Blueberry Markets another question

Andrew Mitchem:

Today, we're going to be answering your questions and the number one question that you want to ask a Forex broker. Let's get into it right now.

Andrew Mitchem:

Hey, traders, it's Andrew Mitchem here at the Forex Trading Coach with video and podcast number 389.

Joined by Ben Clay at Blueberry Markets

Now, something a little bit different today. We're joined by Ben Clay at Blueberry Markets over in Australia. Hi there, Ben.

Ben:

Good day, Andrew. How are you?

Andrew Mitchem:

I'm fantastic and hope you are well too.

Ben:

Thanks, mate.

Andrew Mitchem:

Good. We've got something different. And last week, I asked a lot of questions to people and said, look, I want to know from you what's your most important thing that if you could ask a Forex broker directly and we had a lot of questions come through. What I've done, Ben, I've just listed the main important topics. And if we can, I'd like to ask you those questions and just get your feedback on that so we can help people when deciding who to look for for a Forex broker.

Ben:

Absolutely. Absolutely, mate.

How safe are your funds?

Andrew Mitchem:

We'll start with this one is from a guy called Percy over in the United Arab Emirates. And Percy said, and this is a very common question. How safe is my money if the broker goes bankrupt, even if they're regulated?

Ben:

Very good question, Percy. It's one that I get asked very often as well, and is a question that you should be asking your broker, in my opinion. When it comes to any financial institution, there's risks no matter where you hold your funds. Even if it's in with the bank, there's always risks holding funds at any financial institution.

Ben:

However, in Australia, we're regulated by ASIC, the Australian Securities and Investments Commission, which enforced the Australian Client Money Laws. This is something that's been in place over the last 10 years or so, I believe, and very strict and diligent. Basically, it states that client's funds are segregated and kept separate from our daily operating funds, can't pay for staff wages, company losses, anything along those lines. But having said that, again, I cannot say the funds are 100% safe, but we are overly compliance here at Blueberry and follow these laws very closely to ensure that client funds are as safe as they possibly can be.

Order types and hedging

Andrew Mitchem:

Perfect. Thank you, Ben. Second question from Antonio over in Barcelona in Spain. Do you allow pending audit trading with expert advisors, robots? And do you also allow hedging?

Ben:

Oh, okay. We allow any expert advisors. That's no issues at all and they can place pending orders. We have the four basic types of buy limit, sell limit, buy stop, sell stop, and we do allow hedging. I actually would like to touch on that a little bit because hedging is something I think there's a little bit of misconception around where clients can hedge a trade and it's used as protection.

Ben:

Whereas, I think a common misconception is a good thing to know is if you go 10 lots short, 10 lots long on the Euro, you still have double that exposure in the marketplace, whether your margin requirement is zero. It's definitely something to keep in mind is that if spreads it to wide and outs, you are long and short on either side. 10 lots long, 10 lots short,