ThinkForex Is Why Im Broke

50 Words on – Why you can go Broke with ThinkForex?

Think Forex gets a lot of mixed reactions. Some traders warn everybody about the huge slippages and delays which occur too often, saying they only have fast execution when the market is very calm, while others say their experience with Think Forex was exceptional. It’s almost like every bad opinion is immediately countered with a positive one and vice-versa. However, I tend to believe that their slippages and delays are a bit too much and supporting my belief is a Forex Peace Army user who measured their spread and execution on XAU/USD with a commercial too which I will not mention here. The results are not so good: the biggest delay in opening a trade was 312 seconds and the biggest spread was 197 pips. The measurements were taken during the US Unemployment Rate according to the user. I know Gold has a bigger spread… but 197 pips are way too much. That being said, I cannot know for sure if the reading was accurate or if the tool is reliable and I cannot trust the user 100% since I don’t know him/her so take everything with a pinch of salt.

 

How to avoid going broke with Think Forex

  • Avoid trading during volatile times such as major news releases.
  • Keep track of the spreads and slippages. There are free tools which show you the spread in real time and some of them even give you historical data.
  • Some users complained that 90% of the time their Stop Loss was slipped by 1.5 – 3 pips and even in a quiet Asian session, slippage is present too often. I consider this unacceptable and I would advise you to look for another broker if slippages occur with the mentioned frequency.
  • Although I understand that slippages and increased spreads are part of Forex trading, sometimes it’s too much and could mean that you are dealing with a brokerage which has poor liquidity providers… or is doing it on purpose. Either way, it’s time to get out.
  • If these slippages and high spreads interfere with your trading strategy and ultimately with your profit, I think it’s normal that you get your money out and start looking for a new brokerage.
  • If you think about opening an account, at least make a low first deposit and test their service on your own. It’s the only way you will now if this brokerage is good for you or not.

 

Editor’s Note: Is Think Forex a Scam?

Although I don’t consider them one of the real leaders of the industry, I believe calling them a Scam is a bit farfetched. They are regulated by the Australian Investments and Security Commissions (ASIC) but there are people on the Internet who complain about not being able to withdraw from Think Forex; however, the reasons could be various and at the moment there is no hard evidence that Think Forex is a Scam.

 

Would I trade with Think Forex?

Nah, I wouldn’t. This brokerage is just not good enough for me. There are so many good brokerages out there that I don’t see the point of trying one that doesn’t come with anything innovative or more appealing than the rest. Besides, all the spread and slippage talk makes me stay away, but I am not totally against them so if you are looking for a new broker and you believe they fit your trader profile, give them a try.

 

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