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Should you trust forex broker reviews?
Written by: PaxForex analytics dept - Thursday, 28 May 2015 0 comments
In order to be able trade forex everyone needs to have a trading account with a forex broker otherwise you will not be able to access the forex market online. You do not need to have a forex trading account for old school forex trading where you go to your bank and exchange real cash in one currency for another one. This is the type of forex transaction many holiday goers often do, but it is not trading as they do not speculate on the price movements.
Everyone interested in online forex trading needs to find a forex broker they can trust as they will have to make a deposit before they can start trading. Most new traders often go to forex broker review sites in order to get more detailed information about forex brokers. The site administrator often features a review and others leave comments about the forex broker. One of the biggest questions remains: Should you trust forex broker reviews?
While every forex traders needs to make that judgement call, there are several factors one should consider. First of all you need to be aware of who conducts the reviews and what their motivation is behind
positive and negative reviews. Is the reviewer an affiliate or is the review a paid review by the forex broker who received a positive review? You may never know, but have an objective mind and you will likely figure it out if you compare it to other reviews.
Next, beware of comments which can be very misleading. You don’t know the motivation behind comments and most negative comments often come from two sources: other forex broker who try to talk down their completion or new forex traders who accepted some sort of bonus. While other forex brokers often have their employees leave false negative reviews, the bigger threat comes from forex traders who leave negative reviews despite being at fault.
You can fine negative reviews just about for every broker which is one reason why in general you should ignore reviews. You do not know why they were left and why trust someone you do not know who is disgruntled because they did not read the terms and conditions, made a mistake and then blames the forex broker? Do your own research, contact the broker or even go and meet them to get a much better picture of how trustworthy they really are.