Why Go Local?

forex local broker
If you've been browsing personal finance sites (or even just news sites - or almost any site, really), you've undoubtedly come across ads about Forex.

It's a high-rick investment and before getting into it, you should definitely learn more about it. And today, guest blogger Bwayan Jordison is here again to share more info about forex trading

A lot of what I write here can make it seem that forex trading is something just about anyone can get into and be successful at. If you’ve noticed most of the forex ads that pop up on the side of whatever website or forum you’ve been browsing, most usually comes down to the same thing: if you invest with so-and-so, you’ll be making tons of money in the forex market.

Now, is it possible? Yes.

But is it probable?

I’d be lying to you if I told you that most people who invest in the forex market make money. While I believe in the forex market, I don’t want anybody getting the illusion that it will make you rich, or even that most people who invest in it will see profit. The truth is that majority of people who enter the market will likely exit the market a little less rich, and probably a little bit wiser.

I’ve already written about the most obvious reasons why forex traders lose their money. Approaching the market like it’s a game, not bothering to learn the technical and fundamental aspects of forex trading, not doing your homework – all these are very valid reasons why majority of traders aren’t successful at it. But I’d like to add one more factor into the mix: your broker.

When I first started looking for a broker, the first thing I ever did was to read reviews. I read reviews on the popular brokers, as well as the not-so-popular ones. I read reviews on local brokers and international brokers. Basically, I read reviews made by individuals that covered the whole spectrum, from veterans to online marketers.

What clearly stuck with me after all this time were not the good reviews, but the bad ones. The complaints were as varied as the types of people who made them. Some were simple complaints about customer service; others accused certain brokers of outright fraud. My first thought was that a lot of these sounded too outrageous to be true.

I talked to an industry veteran recently about unscrupulous brokers and he had this to share:  A large number of “brokers” in the industry are actually unlicensed and unregulated. Most of these brokers aren’t out to get you, he mentioned to me, but that fact that nobody will hold them accountable allows them the leeway to get away with some pretty unscrupulous things. In other words, they won’t scam you, but they also won’t give a damn if you lose money – as long as they keep making more of it.

I mentioned that one of the reasons I wanted to go with a broker that had a local presence was because I wanted to support the local forex industry. Well, that’s only part of the story. The other part is that I needed a broker with a tangible presence. A company with an office I could visit and brokers that I could communicate with. While a large broker like OANDA could have sufficed, I’d feel better if my broker was someone I knew on a personal level. I can get a better feel of who I was dealing with, and being based locally means that I could, at the very least, bring my grievances directly to my broker rather than shoot e-mails and pray for an answer.

About the Author:

Bwayan Jordison is a gamer, toy collector and a forex trader at Metisetrade Inc.. He often writes articles to help and educate everyone about the foreign exchange market

Personally, it's always good to be able to deal with a company "face-to-face" so to speak. But if you;re going to choose a broker, aside from location, it's at least equally important to know that they are licensed, highly regulated, by whom, and how to contact the regulator/authorities should the need arise. But in the end, making and losing money likely depends more on your expertise than with your broker.

Please subscribe to my feed, like me on Facebook, circle me on Google+, or follow me Twitter @thePFApprentice. It's free, you won't miss new articles, and you'll also get my free ebook: the Super Savings Guide.

Enter your email address for your free subscription

No comments:

Post a Comment