BLOG Forex Brokers Read This Before You Blame Your Broker!
Let’s get one thing out in the open – not every negative broker review means that that broker is an ultimate scam. We can all agree that about 80% of beginners in trading fail miserably due to their lack of experience and an undisguised eagerness to make the first million next week!
You will also agree that in most cases people only post about their bad experiences. Why? Because while we are happy, we take it for granted and don’t see a reason to share the happy news with the rest of the world (unless, of course, it’s your beer buddies to whom you just have to brag on Friday night!!)
Other important factor is that we, humans, do not like to accept failure and deal with the consequences. It is in our nature to point the figure at someone else, whenever we have a chance.
So… based on the ideas presented above it is possible that some percent of negative reviews which portray certain brokers as the Pandora box of all the evil, are actually the product of a trader’s own strategy failure and the lack of ability to accept his or her mistakes.
Below are the classic broker conspiracy theories:
1. My broker is intentionally manipulated the prices and caused the losses.
2. My broker is stop hunting the positions I have placed.
3. I always have slippage on my orders and it’s never in my favor.
4. The market keeps going the opposite direction as soon as I place a trade.
Before purring all the dirt on the broker, it might be a good idea to analyze what actually went wrong. If you are a professional forex trader who keeps a journal of each trade, idea and emotion presented during the day, it will be a piece of cake to spot a mistake and try to avoid it from now on.
A newbie, who doesn’t keep a journal and relies mainly on a lucky guess, hunting for strategy mistakes doesn’t sound like a great option. It is much easier to blame the broker instead of at least back test the trading plan before you invest any money in real trading.
Sometimes the mistake is not even technical but rather emotional. Have you been overtrading? Are you in front of the computer all the time trying to justify every single possibility to enter a trade? I said TRYING because sometimes there is no trade, but a hungry-for-more-money trader would create an delusional reasons just to enter the market again.
In other cases, a beginner might freak out and miss a move. Sometimes you hit a wrong button – buy instead of sell… sell instead of buy. Sometimes the order is not executed at the price you have technically “clicked” on. Great reason to blame a broker? Not yet. Maybe you missed the button? Maybe your internet is slow? Maybe you need to buy a new computer with more than 1G memory!!!!!
Forex trading is not a game. You have to take some time to understand the market and the price movements before jumping in. Without learning the basics none of the brokers will be good enough for you. All of them will seem like a scam and the market will look like an enemy.
Not all brokers are saints and there are times when it is indeed the broker’s fault. There are scam brokers who manipulate quote rates and activate stop orders. It is true, it is out there and you need to be extra careful not to fall for it.
When choosing a broker, go for something well-known, with years of experience, bulky capital and large amount of trading accounts. Regulated broker definitely overweighs a broker without regulated authority, even if that second offers the best welcome bonus available online!
