As forex traders multiply across the web, third parties are also multiplying. Many of these third parties are offering very important tools that can make forex trading easier and more convenient. This also means that the information about forex is expanding rapidly. This is most obvious in the proliferation of e-books, websites, videos, and third party providers.
What is a third party provider? A third party provider is another trader that trades that will get applied to your account. You can have several third party providers for your forex account. How many you have is completely up to you.
Using a third party provider sounds like a great idea. However, just as with everything else, it can have its downsides. There is always the possibility that the third party trader will lose everything you’ve already learned. To avoid this, there are a few simple rules for picking a third party provider:
1. Look at the potential provider’s history. If they haven’t been making profits for themselves, then it is unlikely that they will be capable of making them for you.
2. The next rule is consistency. You want a trader that has made money over a longer period of time. If they have only been making money for a short period, it could be a scam or beginner’s luck. Make sure they have a track record.
3. Review their trades. Why have they been successful? By analyzing their individual trades, you can most effectively see how and why they’ve been successful and figure out if that can work for you.
4. Honor your own trading style. Everyone has individual financial needs and you need to choose the third party provider who is most likely to help you meet your goals. This doesn’t mean just your goals for this week, but your long term goals as well.