Dealing With The Accusations: Forex Brokers

Posted by admin 05/11/2013 Comments are off 1003 views

dealing with forex brokers

If you look around the web today while reviewing forex brokers, you will find out that virtually all forex brokers have something bad labelled against them.  Even when you see brokers given 5 star ratings, there is always that one trader that is not happy with the broker. In 90% of the cases, most of the bad reviews left against forex brokers are nothing but a smear campaign embarked upon by traders who are not happy with their trading results.

Disproving the accusations of wrong doings against forex brokers

Widening of spreads

This is one major complaint against forex brokers.  It is common to find a complaint against a broker claiming that spreads got widened by as much as 10pips as they were about entering a trade. This is not a lie but what the traders fail to check is at what time the spreads were widened. It is common practice for spreads to be widened during the first few hours of market open, during minutes leading up to news releases just before the market closes for the week. No one is trying to cheat you of your hand earned money, it is just costly to open any trades during these periods.

Claiming to be ECN or STP when they aren’t

This is another common accusation. Unfortunately, there is no way for anyone to distinguish who is STP and who is not STP. It is basically the word of the broker against yours. So unless the trader has been able to institute a lawsuit demanding that the broker comes forward to talk about their mode of operation, the trader is basically clutching at straws in saying that a broker isn’t the type of broker they claim to be.

Poor quality of customer service

You may be surprised to see that many people claiming that a broker has poor customer service only came to that conclusion because it took the broker more than 5 minutes to reply to an email. Many people are just naturally impatient and they forget that it is not in the response time but in how well the situation has been dealt with. If you want a 60 second response time, you can always use the chat button.

Problems with withdrawal

This is one of the most talked about forex broker problems but if you look closely you will find out that traders are often to be blamed in majority of the cases. For example, it is common knowledge that 90% of brokers will allow you fund your account but you won’t be allowed to withdraw funds if you do not verify your account. Many people ignore this bit or don’t know what it means in the terms and conditions and they go ahead to trade and make profits only to turn back and cry wolf later. Some traders go to forex brokers that clearly do not allow hedging or scalping and try to cheat their way through.  When they get found out and thrown out, they will take to forums and blogs in anger.

So, in summary forex brokers cheat but only less than 5% of the time!

 

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