Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Why Forex Brokers Lie?

May 12, 2010 by

Why do Forex brokers or, more exactly, their representatives lie? I don’t mean the “usual lies” with the misleading ads or a plain scam when some broker just stops paying or removes parts of the balance. I am talking about the lies when the broker sends its information to be included to the listing on my site.

When some company wants to add a description of their broker to the list on my site I ask them to answer a list of questions, which would help me to categorize the broker and to set up the actual parameters and description. Of course, even after I receive the answers I make my own check, especially regarding their site’s age, regulation and spreads. From my experience, 9 out of 10 brokers reply untruthfully to at least one of the questions. In all cases they tried to “improve” their look — mainly by inflating the age of their website or by saying that they are registered with some authority when, in fact, they weren’t.

This behavior looks strange to me, because it’s hard to believe that they really think that risking their reputation is justified to get some minor advantage in relation to other Forex brokers. Can’t they understand that the serious Forex site owners will always double-check any published information? I’m afraid the reason for such behavior can be that they’ve just got used to lying while doing their everyday business and that scares me a lot. Knowing that the vast majority of Forex brokers is used to hiding the truth or misinforming the traders isn’t very inspiring.

I hope that there is some rational reason for such behavior but traders should be careful. I’d suggest checking the brokers that you are dealing with before trusting them too much money. A good way is to start looking at what their site states and what’s in reality. Don’t be too lazy to download their demo platform and check spreads, check their site’s whois record and their regulatory/licensing documents. Don’t be shy to ask their user support questions that are disturbing you. It’s better to spend some extra time on due diligence than later be sorry about your lost money.

If you have an opinion or comments regarding the matter of the lying Forex brokers, please, feel free to reply using the form below.

Leave a Reply

required
required (will not be published)
optional