Forex brokers myths are many: some people believe that totally all the forex companies are bad, that in our country it is difficult to find a single decent and reliable dealing desk or brokerage. Traders having significant experience of trading and co-operation with the brokers can find a trustworthy company; however, if you are just a beginner, you’re going to have a tough time. Making a choice of a forex company you may be afraid of being cheated and feel wary of anything. On the one hand, this is normal, because swindlers are not a few; however, despite of all the myths about forex brokers, reliable brokers do exist.
…despite of all the myths about forex brokers, reliable brokers do exist.
Major forex brokers myths
The first and foremost myth is that a broker wants a client go down and out and always plays against him.
Just think about it – a broker is an intermediary making money on you. When you make a deal, you pay him a commission, that is the more deals you make, the more money the broker earns. Why would a brokerage work against you to deprive themselves from the benefits in the form of earnings, especially that you’re not the only client. That is, if you accept this myth as truth, brokerages do not earn anything and work for a sole purpose of doing you harm.
In case of a large company or a bank, media hype will lead to its bankruptcy, as it will lose credibility.
Brokers and inaccurate quotes
Another common opinion, yet again fundamentally wrong. Allegedly, a company does this for the purpose of taking off the stops. However, in such case a company would have framed itself. This is a criminal offence as in fact it is a fraud, and regulatory authorities won’t ignore complaints of the clients. In case of a large company or a bank, media hype will lead to its bankruptcy, as it will lose credibility. Nobody needs that.
Of course, there exist fraudsters possibly capable of such action. None of self-respecting brokers will ever venture to do so. Once you have chosen a large company with good reputation (e.g., having read reviews on Forex Club) you certainly opt for a trusted company.
Dealing desks are corporations with subsidiaries in different countries. They have all the necessary licenses
Brokers work illegally
Brokerages are “registered in the offshore zones”: in case of contingency your money will be gone. Many brokers are engaged in illegal activities. – This is wrong! Dealling desks are corporations with subsidiaries in different countries. They have all the necessary licenses, and their activity is under regular control and supervision of specially authorized bodies. You can assess the current level of customer confidence by reading reviews on RoboForex and other brokerages.
Myths about fx brokers should not be a hindrance in trading. Choose a well-known and reputable company and make money with it!