Even rookie forex traders know about hedging. You know, limiting your risk and searching for a breakout move by going long and selling short the same currency pair at the same time. This is an especially useful strategy to implement with your forex robot once you’ve gotten comfortable with it and gained the necessary knowledge to fiddle with the settings.

You can truly put the odds in your favor by grooming your forex robot to go long and sell short the same pair at the same time, but can every trader legally do this? Unfortunately, the answer is no and let’s take a look at why.

Pack Your Robot’s Bags For England?

Unfortunately, US regulators went and stuck their noses where they didn’t belong and have eliminated hedging for retail traders with accounts with registered US brokers. The National Futures Administration seems to believe that retail traders don’t belong in the forex market and as such haven’t banned hedging for institutions, but either way, this puts your forex robot at a big disadvantage of you’re a US-based trader.

So what are your options? You can either trade with a US broker that isn’t registered with the NFA, but don’t worry, the NFA is trying to make sure all forex brokers catering to US clients are registered, so your options are limited there. Or you can transfer your brokerage account to a European or British broker. Think along the lines of going to FXCM UK from the American FXCM version. Your forex robot can get back to hedging by making this account switch.

There Are Some Disadvantages Of Going Offshore

The problem for forex robot is user isn’t just the fact that US regulators have banned hedging, additional problems arise from the fact that you expect you to sit idly by and keep your account with a US broker. If your account is too large, usually a nice problem, and you move it offshore, you can become subject to state taxes and regulations as set by the Commodities Futures Trading Commission (CFTC). In other words, not only do regulators want to impair your forex robot’s ability to make pips for you, they are basically eliminating brokers choices as well by making it punitive to move your account offshore. Sounds like a raw deal for traders and forex robots alike.

Explore Other Options

The bottom line is every trader wants to have as many weapons in his arsenal as possible. Some forex robots have excellent hedging skills and it pays to maximize these benefits to the fullest, so why not take the time to explore some of the more reputable non-US brokers. Your forex robot will be glad you did.

Checking Your Forex Robot List, Check It Twice

There are few things that should be on your list when shopping for a forex robot. What are the reviews saying about the forex robots you’re considering? Is your forex robot easy to use? Does it come with a money-back guarantee? Is the customer service good? How many pairs does it trade? How often does it trade? These and other factors are the things that smart forex robot shoppers know BEFORE they buy. So put yourself in the class of the smart forex robot shoppers and do your research and you’ll end with a forex robot that can deliver some pips to you.

Author Bio: Francisco Pizarro G. made a career from Forex and left my profession as a Translator almost 4 years ago; Cialis Professional since then I work from home in my small office trading the Asiatic markets during night time, where I found a good niche. I am a fan of Forex Robots

Category: Finances
Keywords: Forex Robots, Day Trading, Forex, Forex Brokers, Finacial Advisors, Expert Advisors