Do Online Forex Brokers Really Care About Traders?
Many new foreign exchange traders wonder: Are the forex brokers my pals? Do forex brokers really care about their clients or is it all about making money? The truth is, many amateur traders lose money. Are the brokers to blame for that?
Most good online forex brokers do care about the traders. These companies want successful traders who will continue to trade using their platforms for a long time to come. Good service should lead to increased profits.
On the other hand, if traders quickly lose money, they stop trading. No more business. This alone should answer the question: Are the forex brokers my pals?
It is, however, a bit different with binary options brokers. When you trade with them, you bet against the house.
You might wonder about what the forex brokers do to assist traders. One thing is that there are no commissions, just spreads (differences between bid and ask prices). Meanwhile, online stock brokers charge commissions plus you still end up paying spreads.
Another way that good fx brokers assist their clients is by providing great trading systems for free. Nowadays, these systems are equipped with real-time quotes and news.
There are economic calendars provided and, at some better forex houses, you get their analysts’ recommendations and comments. Many brokers also provide educational resources about trading in the form of videos and booklets.
It is also becoming more common for the currency trading houses to provide free demo accounts where traders can learn about forex, get to know the system, and test their strategies.
Currently, the charting systems provided to amateur traders are quite advanced. It’s easy to look up 1-minute, 5-minute, 15-minute, 1-hour, and day charts. This gives a good overview of prices and makes it easier to see trends.
What’s more, you can put moving averages, Bollinger Bands, Ichimoku CLouds, and Japanese Candlesticks on the charts to help with analysis. You can draw resistance and support lines, use Fibonacci ratios and fans, and much more. All included for free for being a client.
Overall, these are very powerful systems. Some allow you to trade directly from the charts and even automate trading by setting up forex robots.
All of this is due to technological revolution and resulting easy access to trading. This has lead to intense competition for clients. Now, to gain your business, your forex broker will be your pal.
But remember, as anywhere, there are rotten apples out there. To avoid mistakes when selecting foreign exchange brokers for your currency trading needs, you need to investigate them.
Search online to see how reputable the company is, read the house policies, test their system with demo accounts, check their spreads, and other costs you may occur. This way you’re much more likely to find your trading pal.