In Forex trading, you pay commission on the spred. There is no add on commission but you pay the amount of the spread. Three pips equals $30 on a full sized pair. That’s $50. On a five pip spread.

Forex brokers do not remain open the entire time the market trades. They can set their own hours. Some brokers close before the market stops trading on Friday and open after the market begins trading on Sunday. Not to mention Holidays when trading is still going on. During this time your stuck in the trade if you didn’t exit it before the broker closed. Phone calls, the trading desk is not manned all the time during business hours and you’re always able to access their system or orders execution.

Forex trading is not centralized. Each broker has their own separate data feed and set their own highs and lows.

FCM registered? Make sure they are. Make sure you know what your brokers reserves are, that they hold segregated funds. They should give you their registration number. Make sure it’s valid and current.

Never trade Forex with a broker who doesn’t allow contingent stops and limits when placing an order. Many, many brokers won’t allow you to place a stop and limit until your entry order is filled. This will cause you grief, frustration and money. Their charts do not always correspond to what you expect your fill price to be because their getting their data feed from someone else.

Your broker isn’t there for you. They’re there for themselves. Every broker takes the other side of every trade. This means it’s you against them. Think of Las Vegas. The house is positioned to win. Brokers have ways to hunt out stops and not filling limits. This isn’t a problem when the market blows through a stop or limit. It’s clearly evident on those frequent occasions where the broker seems to miss those call limits on your profit by a pip or two but seems to always be able to execute a stop exit usually on a lose before it swings back the other way.

Back testing can be good but market conditions change. Thus back testing then becomes irrelevant. You can’t always trust back testing. Insist on a trial before you put money up front. Perception in Forex trading is not always the reality. It can be profitable but it can also wipe you out fast and easy if you don’t know all the aspects of your broker and the in’s and out’s of the idiosyncrasies.

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