In the continuation of the topic about the myths of Forex, we decided to share more about the forex brokers. If a novice trader asks a question: Are Forex brokers honest or crooks, then he will most likely find a lot of biased information online!
Related: Top 8 Forex Trading Myths
On the forums, brokers are constantly scolded, contributing to bad clients’ perceptions. Not all brokers are ideal (among them there are often scammers, because this area is still poorly regulated) but most of the stories that you can find on the forums are just nonsense!
We are not going to talk about a particular forex broker right now. We will simply focus on the question if forex brokers are honest or crooks. Just a couple of years ago we were also very worried about how to start making good money on a real account and whether the forex broker will interfere with us.
Will we have problems with withdrawing money?
Firstly, let’s see why there are so many stories about “scam brokers”. Pay attention that almost all of them are being told by beginners. In most cases, they have incorrectly opened a trade, or they have incorrectly closed it, or the price went wrong. It’s always easier to blame someone from the outside than yourself in your own failures. The broker does not even need to do anything.
Statistics don’t lie
According to statistics – 95% of beginners lose. Sometimes, you laugh to tears, when you read that a beginner trader thinks that behind his every step on a demo account or on a micro, mini, an evil broker is watching. Do you know how many accounts large brokers have? Hundreds? Even thousands! Where do they get so many people to keep track of your strategies?
for brokers – Reputation is everything!
If the broker has been established in the forex business for a long time, then he will take care of his reputation in every possible way. Currently, there many good brokers on the forex market who have been working for a long time and have proved themselves well. They constantly develop their services, add more tools and simplify the work of traders. They also have problems, as in any other kind of activity, but generally, these minor problems do not greatly affect our work.
Traders cannot work without brokers, and brokers cannot exist without traders.
This is the link that connects us to the great world of the Forex market. Therefore, to choose a broker, you must approach with all responsibility. You need to carefully check all the conditions of the broker that you have chosen. Make sure that there will not be any additional conditions or commissions. The more you know about your broker, the better!
The first thing you need to check is the support service. During trading, problems may arise, so the broker must provide quick and professional support in the form of a chat or telephone line. The broker should answer all questions quickly and clearly. You can also check the technical support on the demo account. If the broker does not care about potential customers, then the situation is unlikely to improve when you become a real customer. A professional broker will provide quality support, especially for technical issues.
Leverage and Spreads
Next, you need to check the leverage. Do not get carried away with a big leverage, since you can easily fall into the trap. Also check the spread, the higher the spread, the more points you will need, until your position goes to zero. If the spread is large, it is better to look for another broker. Another important issue is the procedure for depositing and withdrawing money. It does not have to be very simple, but at the same time you do not have to spend much time and effort. It is worth starting with a small amount in order to check the whole procedure.
In conclusion, we would recommend to all of you to make inquiries, read, and check the broker before opening an account. Also, do not forget to check what is written in the small tiny spaces on the bottom of the site so that there are no surprises. Work with reliable companies that are in the Forex market for a number of years.