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What kind of traders that usually give reviews?

Discussion in 'General Forex Talk' started by canikizu, May 27, 2010.

  1. canikizu

    canikizu Recruit

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    I was just wondering that what kind of traders usually give reviews (good, bad) on each forex broker review.
    Are they day traders? Scalp traders? They don't have stoploss? their stoploss is 10 pips? 50 pips? 100 pips?

    It is kind of hard to know about brokers with all the mixed good and bad reviews from all kind of random traders. I don't know if my style of trade is suitable for some particular brokers or not.
     
  2. RahmanSL

    RahmanSL Major

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    From what I can gather from different forex forum sites, there are all kinds of forex traders whose trading styles and strategies suit them perfectly but which others will find unsuitable for themselves.
    Some traders will absolutely not trade without SL, and will be horrified to know that other traders don't set SL at all.
    You just have to learn more on forex trading and develop your own trading style that best suits you and that which you are most comfortable with.

    You have not indicated what your “style of trade” is, and so I don’t see how anyone here can advice you whether your “trading style” is “suitable” for some particular broker.
     
  3. Forexwatchman

    Forexwatchman Sergeant

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    We get this question a lot here and it's a great question to ask. I'm going to give you my honest opinion and hopefully it answers your question by giving you some insight into where these reviews are coming from. First off, I wouldn't put much weight into other traders reviews to begin with for many reasons. Mainly it's easier to come across negative reviews than positive ones because people who have had a bad experience are much more likely to go through the effort of writing a review than those who still use and enjoy the exact same service year after year (I've traded with FXDD for 2 years but still haven't bothered writing a review). The reason this also happens is because in most of those cases you have a really naive trader making some terrible money management mistakes due to their own inexperience and mismanagement and then over-exaggerate the frequency and duration of such mistakes in order to effectively get revenge on that broker. This is easier to spot when reading the review as an experienced trader than it would be for a novice one, but here's some examples of phrases or statements to watch out for as a red flag for a trader who just got burned from their own ineptness:

    1) anytime the phrase "blew up my account" or "the trade closed all of a sudden and I lost XXX amount" or "I made XXX amount and then one trade went against me and they wiped out my account"- this is also known as a margin call or over trading which is always your fault every time it happens, since proper money management prevents this type amateur mistake. Look for the keyword "stopped out" in the review.

    2) Any reviews written regarding just the demo account since who cares how well your fake account experience went... it's a demo!

    3) Claims that the broker is manipulating the price action are the most lame due to how easy this is to check into on your own. I always use more than one price feed from alternative sources and thus can cross reference a bad beat (a trade that went against me and stopped me out before reversing back in the original direction). If you see slippage of any considerable amount on a repeated basis and especially during low market volatility THEN you can claim the broker is manipulating the price feed.

    4) Reviews that look like they took less than 5 minutes to type up and sound more like a teenager with bad grammar than an educated trader can also be written off because if you truly had a case to make against a company that you claim took your hard earned money and you are now warning the masses about wouldn't you also have plenty of relevant facts to support your claims? If not, then what good is your review anyway?


    I'll stop there because my biggest point is that the reviews are just a superficial glimpse of the brokers at best. They should not be considered absolute fact, they aren't written by a professional trader most of the time, and like I said before it's easier to write a review when things go bad than when they go right. Ultimately you should investigate the broker's history and background, how much money do they have on reserve, are they an ECN broker, and who are they regulated by? From there, you should simply try them out by making a small deposit and small withdrawals as you see profits and see how that process goes; the more you get to know them the more you can deposit. There's no reason why you would invest a large amount of money into a broker you hardly know about. It's in the brokers best interest in today's forex market to build up a solid customer foundation and not to take your money and run. This industry is growing more now than it has before, so a wise broker will not simultaneously rip off one guy but not the other.
     
  4. jcris522

    jcris522 Duellatorus Representative

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    Nicely Put

    That was a most excellent response Forexwatchman, I agree with every bit. This is a great question because it is so relevant. I have read many reviews over the years especially of education programs and educators during my adventure in becoming a full time trader. Like everyone, I would look at all the 5 star rated companies and read through them and then go for it, I mean if that many people are giving such a good rating, it must be good right? Wrong, eventually what I found out was that 90% of the reviews were done by people who had just started the program, only a month under their belts, or had been doing the program for a while, but had not moved onto a live account, they were all still trading demo. Everyone makes money on a demo because they don't treat it like real money. The minute you open a live account everything changes. So be careful who you trust, ask a lot of questions, especially the hard ones.
     
  5. Pharaoh

    Pharaoh Colonel

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    I'll have to partially disagree with #2. If the demo has severe problems, reported, there's no way I'd risk money with a real account. On the other hand, glowing testimonials about demo trading aren't very helpful.

    Regarding the language and grammar, look at the country of origin. I wouldn't expect every review from a non-English speaking country to be perfectly written (although many are). When I see people who claim to be trading large accounts in from the USA or UK who can't put together a sentence, I do wonder if some of them really know how to use a forex platform.

    For complaints, look at how long they gave the broker to respond. "I filed a withdrawal 4 days ago and it's not here yet." doesn't make me want to run away. "I filed a withdrawal 4 weeks ago and the broker has given me 10 different excuses and promises, but no money has materialized." sets off all sorts of warning bells.

    Look for followups. People usually write a review when they are momentarily happy or angry. Someone leaving followups over a period of weeks, months, or even years is so much more informative than a one shot "I love/hate my broker."
     
  6. canikizu

    canikizu Recruit

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    Thank you Forexwatchman, I understand it now.

    I guess in the end, it just depends on us to determine who is the right choice. I will try what you suggest: deposit small amount of money to some brokers i'm interested in. I guess I have to experience it by myself.
     
  7. forexnet

    forexnet Recruit

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    web based forex brokers


    Earnforex.com has a lot of information on brokers and what is available with a lot of feed back from others

    example: Forex Broker Interviews
    earnforex.com/forex-broker-interviews

    example : Forex Brokers with Web Based Platform with feed back from others
    earnforex.com/web-forex-brokers/

    This helped me find web based forex brokers where i could compare them
     
    #7 forexnet, Jul 15, 2010
    Last edited: Jul 15, 2010
  8. Butscher

    Butscher Recruit

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    this are all kind of traders. to be not lonely, you have to write a bit in forums. thats the reason. but also many other reasons. here you see an <a href=http://www.broker-vergleichen.de>Aktien-Depot Direkt-Broker</a>
     
    #8 Butscher, Jul 29, 2010
    Last edited: Dec 7, 2010

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