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Honest brokers

  • #1
  • First Post: Apr 21, 2012 7:06am Apr 21, 2012 7:06am
I've been reading through this forum looking for brokers who have treated their customers wrongly or refused to comply with withdrawal requests. I've found some good arguments, but it's so much it is difficult to find.

I am wondering if any of the administrators could make a sticky thread here where people having issues can post their problems together with relevant evidence so that it is easy to find straight away entering this area of the forum?
  • #2
  • Apr 21, 2012 12:19pm Apr 21, 2012 12:19pm
The spirit of what you are asking is good... but sadly such a thread would just encourage people to smear brokers and spread fear needlessly.

Take a site like ForexPeaceArmy for example, most popular brokers will have tonnes of negative claims against them that are unfounded...some even fabricating 'evidence' or twisting events to make the broker look bad.

Since people get very skeptical and suspicious when it comes to money, spreading fear about a broker is an effective weapon against them... and it's too often used by losing traders looking to blame anyone buy themselves (or even the broker's competitors.)

That's not to say that all brokers are good... plenty are bad apples, but I'm just suggesting that if you give people an easy way to flame a broker, they'll use it if the broker deserves it or not.


I've been looking for alternatives to rate brokers for a long while... the online community needs a better tool that isn't rife with misleading information. If there was an easy solution, I'd speak up... sadly I haven't found one yet.

A couple of rules I go by when assessing a new broker:

 

  1. Stick to well regulated brokers who operate out of known safe economic zones.
  2. Observe the broker's marketing material and how they present themselves, are they making claims that are too good to be true? Are they promising great trading conditions only to find out such features require huge deposits or volume and you gotta start off with a cruddy account?
  3. Observe the broker's promotions, what are the terms? Are they acting like a casino by offering deposit bonuses? (this is a negative in my books, shows the kind of clients they are trying to attract and their business model's intentions)
  4. Observe how their support reps know the company and the industry... get on a live chat or call them and ask a million questions, listen closely to the answers, do they sound like they can take ownership of your problem and solve it for you should there be issues with your live account?
  5. Find out the process for contesting errors in your account, and look for evidence of them making good on past problems... (every broker has issues, no technology is perfect, what matters is how they handle it.)


Finally, even if one passes your assessment, DON'T JUMP RIGHT IN... test the broker slowly. Give them a chance to win more of your business as they do the right things. Start with a small account, even if you plan on trading with more, just to see how the broker handles execution and account issues that arise.

Be skeptical and be critical, it's healthy as a trader.. but don't just listen to fear / praise online and let it lead you from one broker to another blindly... do your own, first-hand, assessment.

FXGears.com
  • #3
  • Apr 21, 2012 1:28pm Apr 21, 2012 1:28pm
Quoting Jack_Larkin
The spirit of what you are asking is good... but sadly such a thread would just encourage people to smear brokers and spread fear needlessly.

Take a site like ForexPeaceArmy for example, most popular brokers will have tonnes of negative claims against them that are unfounded...some even fabricating 'evidence' or twisting events to make the broker look bad.

Since people get very skeptical and suspicious when it comes to money, spreading fear about a broker is an effective weapon against them... and it's too often used by losing traders looking...
Very well said!
The only way not to think about money is to have a great deal of it
  • #4
  • Apr 21, 2012 5:08pm Apr 21, 2012 5:08pm
I've noticed, all the brokers have bad reviews, and I would assume a lot of those bad reviews are made by traders who are not able to make money trading.

It was just a suggestion anyway, I'm quite happy with my broker. They are one the NYSE and thus publish an annual report for investors every year, which gives me some extra sense of security.
  • #5
  • Apr 21, 2012 6:17pm Apr 21, 2012 6:17pm
Now, that would seem to be a fair suggestion but given the way some brokers operate, would not be surprised to learn they pay others to smear their competition so that actual complaints gets lost in the mix..
Yes, while your suggestion does sound good, it is bound to be misused by traders who lost money to brokers out to smear their competitors..
  • #6
  • Apr 23, 2012 8:21am Apr 23, 2012 8:21am
now days its hard to find a honest broker, there are too many out there and they all can play on promotion and ads card so they just can fool any one by appearance and when the harm is done it can be to late, and there are some decent brokers who are not promoting them selves like crazy so not much people can find out they are that good ! =)
  • #7
  • Apr 23, 2012 9:05am Apr 23, 2012 9:05am
I stand corrected. After reading your posts I understand that even though it would be nice to have such a place, it would be impossible to keep it from being corrupted.

Thanks for all oppinions.
  • #8
  • Apr 26, 2012 1:58am Apr 26, 2012 1:58am
Quoting Jack_Larkin
Take a site like ForexPeaceArmy for example, most popular brokers will have tonnes of negative claims against them that are unfounded...some even fabricating 'evidence' or twisting events to make the broker look bad.
Forex Peace Army is not a "last instance truth". A lot of posts over there made by unfair competitors.
  • #9
  • Apr 26, 2012 3:24am Apr 26, 2012 3:24am
It's a matter of fact that to one person one broker can be good and for another the same broker is not a fair one. From my own experience I can tell that different brokers treat each of their client in a different way. Besides, many brokers lead aggressive promotion campaigns. So, you want it or not but you're gonna to love this broker.
  • #10
  • May 15, 2012 1:03am May 15, 2012 1:03am
Quoting Jack_Larkin
The spirit of what you are asking is good... but sadly such a thread would just encourage people to smear brokers and spread fear needlessly.

Take a site like ForexPeaceArmy for example, most popular brokers will have tonnes of negative claims against them that are unfounded...some even fabricating 'evidence' or twisting events to make the broker look bad.

Since people get very skeptical and suspicious when it comes to money, spreading fear about a broker is an effective weapon against them... and it's too often used by losing traders looking...
I agree and it is a good answer. If you have doubts, you should not join. Because it is your money not belong to traders who suffered losses or gains from the broker.
  • #11
  • May 15, 2012 4:25am May 15, 2012 4:25am
Quoting G-Boomerang
Forex Peace Army is not a "last instance truth". A lot of posts over there made by unfair competitors.
How did you check this?? did the same??
very nice, good price..!
  • #12
  • May 15, 2012 8:48am May 15, 2012 8:48am
While I was surfing on net I found some nteresting story related to this thread check this out folks
http://www.ehow.com/how_2072980_find...ockbroker.html
  • #13
  • May 23, 2012 9:51am May 23, 2012 9:51am
Quoting G-Boomerang
Forex Peace Army is not a "last instance truth". A lot of posts over there made by unfair competitors.
+1
  • #14
  • May 23, 2012 11:59am May 23, 2012 11:59am
"Stick to well regulated brokers who operate out of known safe economic zones."

You would think this would be commonly followed advice. Sometimes traders go with brokers just because they offer 200:1 or 400:1 leverage. They may wonder if they will have problems withdrawing their money. When you choose a broker you have to consider that if the broker goes out of business, you will most likely lose your money.

So where do you want your money to be held? The U.S. forex market is the most heavily regulated market in the industry. People complain about only being able to trade with 50:1 leverage. Well here's a news flash, if you actually trade with over 50:1 leverage, you probably won't be profitable in the medium to long term. Good traders risk a very small percentage of their equity on each trade so the fact that they are capped at 50:1 leverage is irrelevant to them.
  • #15
  • Last Post: May 23, 2012 12:10pm May 23, 2012 12:10pm
"Finally, even if one passes your assessment, DON'T JUMP RIGHT IN... test the broker slowly. Give them a chance to win more of your business as they do the right things. Start with a small account, even if you plan on trading with more, just to see how the broker handles execution and account issues that arise.

Be skeptical and be critical, it's healthy as a trader.. but don't just listen to fear / praise online and let it lead you from one broker to another blindly... do your own, first-hand, assessment."

So true! A lot of people only consider spreads when signing up with a broker... Where you get filled and how much you get slipped is incredibly important in trading. People should be examining their overall trading experience when evaluating brokers.
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