Hello there!

I am Andrew from FxCompany and I am about to start blogging here. Welcome!

What I wanted to talk about today is the vision of the ideal broker, as we seek for it. From my experience I see traders expect it to look this way:
- Minimum fixed spreads
- Maximum fast auto-execution
- Bonuses!!! More bonuses!!
- Super-microlots (0.01 or even less)
- Wide deposit/withdrawal options

Cool, isn't it? Why doesn't it happen? And if it does, it turns out to be just a marketing stuff to attract customers. When we start trading there we rapidly realize there are serious drawbacks like withdrawal problems, spikes, etc, etc...

The answer is simple. None of the stuff is actually profitable for NEITHER brokers nor traders. Let's take a close look. Why would a person need a fixed spread and auto-execution? For news trading, aka scalping. Well, everyone knows, that if Forex is a high-risk investment (ever read Risk Disclosure statements? Read it, you will learn a lot of interesting stuff), news trading - is a very.. VERY high-risk investment.

You just open an order, put the whole deposit there, forget about both Money Management and common sense... and then it actually works like a Russian Roulette. Nice way of suicide, isn't it?

Why is it not profitable? Because any trader with such a strategy EVENTUALLY will lose his deposit. Trust me, without any help from outside, he will do. Why do people go on trading like that? Well, they expect to earn fast and more. Like it was said somewhere out there "Show me a trader having a stable 30% yearly profit within 20 years, I will put him to a Guinness record book".

So what would be the solution? Simple. The money management. Risks consideration. Reasonable trading. Brokers do not work against traders, they work FOR the traders. That's what actually happens - they provide better and better conditions, services, etc, etc. But broker's understanding of a better conditions is somewhat different.

That can be real, DIRECT interbank spreads. That can be warranties and reputation. That can be licensing and regulation. That can be professional customer care team. Do you see my point? That is what brokers consider better. Try to listen to them, maybe it makes some sense?