Forex brokers, very simply can be described as your window to the largest currency market in the world. Thanks to these brokers, we are able to log in to a trading platform and participate in trading at the first place. Needless to say, discussions on forex brokers are to be found everywhere- the trading forums, social media and blogs. If there are different sources, there is a dizzying array of misconceptions as well. What are the most common myths as far as forex brokers are concerned? Read on to find out.
#Myth 1: The broker can actually make or break your trading career
NO! Let us tell you that a broker definitely facilitates the entire process by offering you accurate charts and graphs but your trading fortune is governed by your ability to strategize your trading moves – acing several odds (like quick market movement, your own mood swings and others) on your way. Yes, it is important to choose a broker that has earned a reputation for offering accurate indicators (one example of such a broker is https://www.easymarkets.com). However, it would be sheer imprudence to rely completely on their guidance as far as winning or losing is concerned.
Your forex broker is not your infallible passport to profit. It’s the traders’ tendency to think otherwise which leads to them to blame their brokers for their losses. In such a scenario, acquainting yourself with the responsibilities of a good broker only helps:
- Offer as tight spreads as possible
- Easy to access trading platform and 24 hour tech support
- Fund security
- Information security
#Myth 2: Forex brokers hunt stops
This is one complaint which is primarily made by day traders because their moves are subject to high volatility (as a result of which they are mostly on the losing side). Brokers don’t do that. They don’t “rig” the market as is often claimed by traders. You might think that they win big when you lose which is why they manipulate the market against your moves. The reality is – brokers are going the extra mile to make sure that their clients make profit because it’s their reputation which is at stake. It is all about establishing a “reliable” record. Short term gains are no means of sustenance, but reputation, inadvertently, is.
#Myth 3: Forex demo accounts don’t help because they don’t involve real money!
For every article or blog informing you about the benefits of practicing with demo accounts, there is that peer of yours telling you that it doesn’t help because they don’t involve real money. No real money. No real emotions. As such, no real information about how to cope with mood swings while trading. These are points that cannot be dismissed in their entirety. Similarly a demo account is a great means to familiarize yourself with the world of trading because though you aren’t trading with real money you’re trading with real graphs and charts. Your broker will insist you to continue on demo account as long as possible!
