Octa, a global broker since 2011, surveyed
more than 2,000 traders from Indonesia, Malaysia, South Africa, and Nigeria to
discover their most glaring concerns regarding choosing a financial broker.
What are the most suspicious brokers’ traits, according to traders? How do
traders identify potentially unreliable service providers in the highly
diversified e-brokerage landscape? Below is the breakdown of Octa’s research on
brokers’ red flags.
Every experienced trader knows a handful of
tell-tale signs indicating an unreliable broker. This awareness can come from
personal experience, common sense, or secondhand accounts. In any case, these
red flags define traders’ choices. They are essential knowledge for those
starting their journey in the financial markets or seeking an opportunity to
engage with a new broker.
As a trusted broker focusing on building
long-term, mutually beneficial client relations, Octa regularly researches
traders’ behaviours. Here’s what traders think about brokers’ red flags.
Realistic
expectations
First and foremost, Octa’s survey revealed a
strong interest in brokers’ promises. It turns out traders are highly
unappreciative of murky, evasive, and overly optimistic messages. This kind of
false assurance and misleading self-positioning on the part of a broker can
turn them off even before their trading journey begins.
When asked about major red flags in brokers’
advertising and positioning, South African and Malaysian traders indicated the
most concern about companies that promise easy and unrealistic gains: 62% and
60%, respectively. 36% of Indonesian traders also said this type of
misrepresentation was enough to scare them off.
Guaranteed profits declared by the broker are
also a major red flag for traders in various regions. This is especially true
about South Africa, where 40% of survey participants said they wouldn’t engage
with a broker promising bulletproof positive outcomes.
Chart
manipulations: a universal red flag
Unsurprisingly, more than half of the
respondents in all countries indicated that trading chart manipulations like
creating artificial gaps or manipulating candlesticks would be a major concern
and would most probably lead to saying goodbye to a broker, regardless of other
factors.
There is almost no discrepancy between
different survey countries regarding this red flag: between 54% and 61% of
traders stay away from brokers that allow such malpractices.
As a regulated and trusted broker, Octa works
with independent, third-party liquidity providers to offer its clients
non-distorted market prices. Octa also provides access to historical chart data
so that traders can verify that the broker’s prices align with actual market
conditions and that there were no chart manipulations or price slippages at any
given time.
Fast
withdrawals as a recognised sign of reliability
A surprisingly high percentage of participants
said they had encountered serious fund withdrawal issues in their trading
careers. As many as 27% of respondents in South Africa indicated they had had
this problem at some point in their trading journey.
21% of Indonesian and 19% of Malaysian traders
also had insoluble problems with the cash withdrawal process when engaging with
various financial brokers. Nigerian traders were less exposed to this negative
side of the trading experience, with only 14% reporting unsolved withdrawal
issues.
Octa recommends testing a broker first-hand
and forming your own opinion instead of mindlessly believing optimistic
promises. Among other advantages, the broker offers a fast and efficient
withdrawal procedure that can easily be tested by any trader who engages with
Octa, regardless of the country.
High
fees can be a deal-breaker
When asked what broker’s flaw is most likely
to stop them from becoming the broker’s client, most survey participants
highlighted the following two main reasons:
● high
spreads and hidden trading commissions (from 29% in South Africa to 39% in
Indonesia)
● slow,
non-transparent, or unfavourable cash withdrawal procedures and rules (from 13%
to 29%, depending on the country).
These results show that traders highly value
full transparency and fair trading conditions in addition to fast and efficient
withdrawals. Indeed, when it comes to intraday trading, high spreads or hidden
fees can turn a profitable trading session into a losing one. Such an outcome
can come as a shock to a trader if the real-life commissions and fees differ
from those indicated by a broker in terms and conditions.
Wrong
moves
The Octa’s survey was not limited to brokers’
red flags and made a foray into traders’ self-reflection. When asked what
trading mistakes led them to significant losses, survey participants indicated
the following reasons as the most prevalent:
● trading
when affected by strong emotions
● forgetting
about management tools
● placing
orders intuitively, without any specific strategy in mind
● executing
strategies without trying them on the demo account first.
Other reasons for making bad trading decisions
include trading when feeling fatigued. Overall, it is safe to say that
emotional behaviours are among the most dangerous negative factors affecting
traders’ performance.
Conclusion
The research established that Indonesian,
Malaysian, South African, and Nigerian traders prefer to work with brokers that
provide a sense of security and transparency. They look for clear, predictable,
and honest procedures that avoid hidden fees or complex withdrawal conditions,
which can help establish long-term relationships with brokers based on mutual
respect and clarity.
Disclaimer:
Trading
involves risks and may not be suitable for all investors. Use your expertise
wisely and evaluate all associated risks before making an investment decision.
About Octa
Octa is an
international broker that has been providing online trading services worldwide
since 2011. It offers commission-free access to financial markets and various
services used by clients from 180 countries who have opened more than 52
million trading accounts. To help its clients reach their investment goals,
Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive
network of charitable and humanitarian initiatives, including the improvement
of educational infrastructure and short-notice relief projects supporting local
communities.
Since its foundation, Octa has won more than
100 awards, including the ‘Most Reliable Broker Global 2024’ award from Global
Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from Global
Brand Magazine.
Octa, a global broker since 2011, surveyed
more than 2,000 traders from Indonesia, Malaysia, South Africa, and Nigeria to
discover their most glaring concerns regarding choosing a financial broker.
What are the most suspicious brokers’ traits, according to traders? How do
traders identify potentially unreliable service providers in the highly
diversified e-brokerage landscape? Below is the breakdown of Octa’s research on
brokers’ red flags.
Every experienced trader knows a handful of
tell-tale signs indicating an unreliable broker. This awareness can come from
personal experience, common sense, or secondhand accounts. In any case, these
red flags define traders’ choices. They are essential knowledge for those
starting their journey in the financial markets or seeking an opportunity to
engage with a new broker.
As a trusted broker focusing on building
long-term, mutually beneficial client relations, Octa regularly researches
traders’ behaviours. Here’s what traders think about brokers’ red flags.
Realistic
expectations
First and foremost, Octa’s survey revealed a
strong interest in brokers’ promises. It turns out traders are highly
unappreciative of murky, evasive, and overly optimistic messages. This kind of
false assurance and misleading self-positioning on the part of a broker can
turn them off even before their trading journey begins.
When asked about major red flags in brokers’
advertising and positioning, South African and Malaysian traders indicated the
most concern about companies that promise easy and unrealistic gains: 62% and
60%, respectively. 36% of Indonesian traders also said this type of
misrepresentation was enough to scare them off.
Guaranteed profits declared by the broker are
also a major red flag for traders in various regions. This is especially true
about South Africa, where 40% of survey participants said they wouldn’t engage
with a broker promising bulletproof positive outcomes.
Chart
manipulations: a universal red flag
Unsurprisingly, more than half of the
respondents in all countries indicated that trading chart manipulations like
creating artificial gaps or manipulating candlesticks would be a major concern
and would most probably lead to saying goodbye to a broker, regardless of other
factors.
There is almost no discrepancy between
different survey countries regarding this red flag: between 54% and 61% of
traders stay away from brokers that allow such malpractices.
As a regulated and trusted broker, Octa works
with independent, third-party liquidity providers to offer its clients
non-distorted market prices. Octa also provides access to historical chart data
so that traders can verify that the broker’s prices align with actual market
conditions and that there were no chart manipulations or price slippages at any
given time.
Fast
withdrawals as a recognised sign of reliability
A surprisingly high percentage of participants
said they had encountered serious fund withdrawal issues in their trading
careers. As many as 27% of respondents in South Africa indicated they had had
this problem at some point in their trading journey.
21% of Indonesian and 19% of Malaysian traders
also had insoluble problems with the cash withdrawal process when engaging with
various financial brokers. Nigerian traders were less exposed to this negative
side of the trading experience, with only 14% reporting unsolved withdrawal
issues.
Octa recommends testing a broker first-hand
and forming your own opinion instead of mindlessly believing optimistic
promises. Among other advantages, the broker offers a fast and efficient
withdrawal procedure that can easily be tested by any trader who engages with
Octa, regardless of the country.
High
fees can be a deal-breaker
When asked what broker’s flaw is most likely
to stop them from becoming the broker’s client, most survey participants
highlighted the following two main reasons:
● high
spreads and hidden trading commissions (from 29% in South Africa to 39% in
Indonesia)
● slow,
non-transparent, or unfavourable cash withdrawal procedures and rules (from 13%
to 29%, depending on the country).
These results show that traders highly value
full transparency and fair trading conditions in addition to fast and efficient
withdrawals. Indeed, when it comes to intraday trading, high spreads or hidden
fees can turn a profitable trading session into a losing one. Such an outcome
can come as a shock to a trader if the real-life commissions and fees differ
from those indicated by a broker in terms and conditions.
Wrong
moves
The Octa’s survey was not limited to brokers’
red flags and made a foray into traders’ self-reflection. When asked what
trading mistakes led them to significant losses, survey participants indicated
the following reasons as the most prevalent:
● trading
when affected by strong emotions
● forgetting
about management tools
● placing
orders intuitively, without any specific strategy in mind
● executing
strategies without trying them on the demo account first.
Other reasons for making bad trading decisions
include trading when feeling fatigued. Overall, it is safe to say that
emotional behaviours are among the most dangerous negative factors affecting
traders’ performance.
Conclusion
The research established that Indonesian,
Malaysian, South African, and Nigerian traders prefer to work with brokers that
provide a sense of security and transparency. They look for clear, predictable,
and honest procedures that avoid hidden fees or complex withdrawal conditions,
which can help establish long-term relationships with brokers based on mutual
respect and clarity.
Disclaimer:
Trading
involves risks and may not be suitable for all investors. Use your expertise
wisely and evaluate all associated risks before making an investment decision.
About Octa
Octa is an
international broker that has been providing online trading services worldwide
since 2011. It offers commission-free access to financial markets and various
services used by clients from 180 countries who have opened more than 52
million trading accounts. To help its clients reach their investment goals,
Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive
network of charitable and humanitarian initiatives, including the improvement
of educational infrastructure and short-notice relief projects supporting local
communities.
Since its foundation, Octa has won more than
100 awards, including the ‘Most Reliable Broker Global 2024’ award from Global
Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from Global
Brand Magazine.
