What are the advantages of trading Forex through a bank?

To begin with, my acquaintance with Forex started with the fact that a friend suggested trying to trade on a no deposit bonus from one bank. A friend said that all this is a scam, but here it’s like a broker bank - everything should be reliable, protection from fraud, all things.

From here the first plus actually follows. A real bank that you can visit, which has real investors, is more credible than a virtual DC. More likely that you will not put sticks in the wheels and will steadily withdraw profits. Having a bank of our own huge money by our standards allows us to believe that it is not interesting for him to rip us off with our copecks, but to increase the number of customers and earn commissions is enough.

The second plus of working through a bank is legality. You can safely trade, knowing that everything will be in order with taxes. Most likely, taxes will be paid by the bank immediately from the profit. Either the information will be transferred to the tax, but in any case, you will know exactly how much tax according to existing legislation you need to pay, and your conscience will be clear.

The withdrawal of your transactions on the interbank market, that is, real trading, with real market entry and real profit. Not all brokers can boast of this.

The disadvantages of trading through a bank include the features of the device of each bank:

1. The likely presence of its own platform, as a rule, is different from the MT4 familiar to us, again with some features of transaction execution.

2. Special conditions for the contents of the trading account. This can be its minimum volume and payment for services, and high commissions when transferring money from a trading account to a savings or current one.

3. Small leverage. Here you will not see the shoulders of 1: 1000 or even 1: 2000. In the best case, it will work from 1: 100. For some it’s a minus, for someone it’s a plus, but coupled with a higher level of stop-out and margin stake, you don’t have to groan. The bank simply appreciates its money and insures against slippage so that it does not happen to be in the red.

While we operate with small amounts, we dare to hope that the broker will pay us all the profits without any problems. As soon as the amounts become larger, most likely we will think about starting to trade part of the funds through the bank, as the bank is still associated with stability.

In general, if you summarize a little, then we, ordinary traders with a couple of cents on the account, are no good at sticking to the banks, and they won’t rush around with you like a written bag, since you will not be a large client. In the appendage you have to pay taxes, from which you can try to evade trading with an online broker.

But if you have substantial enough capital, it is better to choose a bank, since there will already be higher security, the chance of fraud is lower, if you can really go to court, and do not forget that if you pour a huge amount to an online broker, then you’ll also be cut off your leverage, and you’ll look and some slippage, freezing of the terminal and so on will begin.

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Damian

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I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....