Trust Line between Trader and Broker

Trust Line between Trader and Broker

Submitted by adil on Tue, 03/19/2013 - 05:03

The rise in popularity of Forex trading has been tremendous over the last few years. More and more traders are investing their money in this line of business. Similarly hundreds of brokers have also entered the market to meet the rise in demand for service. The increase in the number of brokers has upped the competition in the industry making it tougher for brokers to stay in business. Due to this a few not so honest brokers have resulted to using dubious methods to stay afloat, the result being, soiling the good name of the brokerage business.

The reputation of brokers has been dented by many malpractices that are normally highlighted in the media. Some people who are not already active in the Forex market generally view the market as a scam. This is because of the sentiments that are being expressed by customers who have had the misfortune of being cheated by malicious brokers.

The Forex market, being a decentralized, does not have a central authority to confirm the real price of currencies. The lack of a central authority to look into such matters makes it difficult for traders who operate mini account to accept the trades made by their brokers. A conflict of interest exists in such accounts as the trader wins when the broker loses and vice versa. Traders think that brokers are able to manipulate the price in their favor.

The year 2012 was a very difficult year for the American economy. The economic difficulties made things harder for brokers in various fields including Forex. Trading volumes on the US exchanges suffered, reaching an eight year low in 2012. The situation was also mirrored on the European markets. This situation only complicated relations between traders and brokers.

However to avoid the mistrust, clients are advised to examine the brokers before opening an account. There are some awesome and highly reputable brokers in the market who are out to make the trader win. The best type of broker who provides the highest level of transparency is the regulated Electronic Communications Network (ECN) broker.�Intellitraders�also provides not only trading education but also the most reliable brokers ( Forex brokers and Binary options brokers) to its users. Signup free with Intellitraders to get opportunity to trade with best reliable brokers.