Forex trading: Why you should always read the T&C

When signing up to a new Forex broker, it’s common for people to want the registration process to be as quick as possible. If we find a website that we think looks good, has a good starting offer and a reliable trading platform, we just want to register and deposit as quickly as possible. Think about it, how many times have you downloaded something, and when a screen with terms and conditions pops up, you just click the accept button without even glancing at the content? Sure, I get how you can do that if you’ve just downloaded the latest flash player, for example. It’s a free software after all. But when it comes to a service to which you will deposit your own money, in some cases pretty large sums, do you really want to accept set of terms that you haven’t even looked at? To me, that’s just plain stupid.

Yes, the terms and conditions, in most cases, are long boring and time wasting. But the fact that you might miss out on important information if you don’t reading definitely makes it worth the time it takes reading, at least in my opinion.

Keep in mind that different forex brokers have different withdrawal procedures for example. Whereas one broker might accept an unlimited amount of withdrawals, another broker might only accept one withdrawal a month, which might suit some players but not others. This will be described in detail in the terms and conditions, and might affect your choice of actually opening an account with the broker or not.

Another common thing to create tension between a forex broker and a trader is a disagreement over deposit bonuses. This is usually the result of the client not having read through the requirements for the bonus when he accepted it, and he then gets disappointed when he can’t withdraw money from his trading account as the requirements of the bonus have not been met. It’s not uncommon for people to state that a broker has tricked them, when in fact it is themselves that have done wrong. The vast majority of brokers are not out to scam you of your money, and as long as you read through the terms and conditions of a bonus you will know exactly what is expected from you when you accept the bonus, and this way you can avoid any future misunderstandings. To avoid “rouge” brokers, however, a good idea is to choose a broker listed at a forex trading portal. One of my personal favorites is forextrading.pm as well as www.cambiodivisas.eu, which is a spanish forex website.

So, to conclude this article, make sure to always read through the terms and conditions for any service that you are going to spend money with. Although it might seem like a long read it shouldn’t take you more than 15 minutes to read through, and spending 15 minutes reading in order to avoid any future problems that might take you days to solve is definitely time well spent, wouldn’t you agree?

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