Don't Blame the Broker
|It’s just too easy to blame the broker – you lose a trade and blame the broker for stretching the market in order to stop you out. You try to exit a trade at a busy moment and you blame your broker for freezing the platform in order to prevent you from making a profit. You put your money and your trust with the broker and you feel that you’ll leave without them. But before wasting your time in complaining, there are quite a few things to do.
Well, in some cases you could be right. There are some problematic brokers out there and they do such tricks in order to turn your deposit into their revenue.
But if you’re trading with a broker that has no dealing desk, or an ECN / STP platform, that’s unlikely to happen. Such a broker passes your order to a larger liquidity provider and doesn’t play with your order. In such a case,the broker genuinely profits from the spreads, meaning that your interests are aligned with the broker’s interests. More trader success = more trades = more profit.
But also when your broker is a regular market maker, it doesn’t mean he’s stealing your money. if you’re trading with a regulated broker, there’s a smaller chance that this is the case. And if you’re trading with a regulated NDD / ECN / STP you should sure look for the blame elsewhere.
No matter what broker you trade with, you should first check out what went wrong: did you follow your trade plan? Were the Stop Loss and Take Profit orders carefully placed? Did you try to make an impossible trade?
It’s important to remember to first check yourself out. Complaining to friends or on message boards may be a great way to release the pressure, but it sure won’t bring your money back. Checking out what went wrong and learning a lesson will definitely help you make money in the future.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.