Many dealing centers want to give an interview. After 2-3 tricky questions dealing centers representatives take offence and leave. Probably, because advertising and adverse publicity have a very fine line when you ask questions which are interested for traders but not dealing centers. I introduce you a person who firmly and honestly stood this "pressure".
In opinion of "Stock leader" magazine specialists, brokerage company InstaForex is one of the most dynamically developing companies not only in the Russian Federation but all over the world. Today we will try to sort out the intricacies of brokerage mysteries with representative of international Forex broker InstaForex Dmitry Savchenko.
Forex brokers are casino, and MT4 is a new type of roulette?
J: The number of dealing centers comes to tens and constantly growing. It is not a secret that traders think about dealing centers as about groups of businessmen who bought trading terminal MT4 ("lossless roulette") and collect money from traders with the only aim – divide it between them. Collected ... and divided it (97% of traders lose money themselves, 3% of traders lose with the "help" of dealing center, those who take profit will not be allowed to withdraw it. There are already 5 cases among listeners of the Academy whom dealing centers or brokerage companies have not paid). Does traders’ opinion about dealing centers and Forex brokers correct or not?
InstaForex: This opinion is partly correct. Forex brokers are reflection of our life where you can see anything, it is important to distinguish one from another. Indeed, dealing centers and brokerage companies in the Russian Federation and abroad which can fall under described scheme. Every Forex trader should pay attention to the niceties which can really help him/her to distinguish reliable Forex broker from "bucketshop".
J: How can trader distinguish reliable broker from a "bucketshop"?
InstaForex: All criteria which you can find in the Internet (paid hosting, analytics, etc.) became obsolete long time ago – everyone has paid website, almost everyone has analytics. Search an answer for our question in two directions: - who, when and why established dealing center; - what investments were done. If you see an advertisement where "a group of experienced traders" gave up trading by unclear reasons and decided to make the world happy by their own brokerage company ... or where absolutely new dealing center suddenly announces unprecedented trading conditions, it can not be something serious. By the way, there are so many bricks so you never remember which you haven’t dropped yet.
J: Well, let’s consider exact example. I am a trader who opened an account with you for $1000. What will happen further with my money especially if I start taking profit?
InstaForex: Nothing will happen with your money. It will be in your account and will reduce or increase depending on the efficiency of your trading. InstaForex is a large international Forex broker with more than significant investments. We earn only on spreads. We entered this market not for a month or a year. We are going to stay here as long as it is possible. So it is inappropriate for us to apply grey schemes or "play" with trust management. We have already formed significant client base, so we successfully develop at the expense of the only and absolutely transparent source of income – spread. So one more time I want to offer all active and potential clients to separate the wheat from the tares.
J: Who and why established brokerage company InstaForex? Keep watching you for a long time. At first, good prizes in the contests on Demo accounts, then outstanding campaign "Hummer H3 to a jammy fellow". Do expenses pay off in the conditions of the world economic crisis?
InstaForex: You correctly noticed the essence of our company and its principle difference from other brokerage companies – it is work for future. InstaForex Companies Group is a group of investment companies from all over the world, which finely understand that investments as distinct from the currency speculations are LONG-term projects. Why did we enter the market of brokerage services and started its occupying? Because we saw who and why establishes brokerage companies and what service they provide. It looks terrible from the inside. Our way is unique - we are the first started investing in traders who need to be brought up ... most dealing centers (as distinct from investors) do not care about it.
J: We have noticed this by InstaForex relation to Masterforex-V Academy. While some companies prohibit any mentioning of MF, your staff even send traders to us for education.
InstaForex: Relation to your Academy is also evaluating criteria for Forex-broker – which brokers need experienced traders and which don’t. We do not only recommend Masterforex-V to the most talented traders, but in the nearest future we will make the next step within our strategy of trader and investor interests’ combination. Now we are carrying on talks with MF regarding organization of wide-ranging contest among the Academy members during 1 – 2 months with big prizes.
For example, the first prize-taker in the demo-contest among the MF Academy audience will get 3 thousands USD in cash and 30 thousands USD as initial deposit to trust management account. If trading is profitable, an investor account will not be limited by volume. There are no investment problems in the world (even under the conditions of the global financial crisis), there are other problems (traders’, investors’). We are planning to held such contest (with checking stop-out and other criteria by our investment department) regularly.
J: Describe the main steps of your company’s development. What is done already, and what do you have to do?
InstaForex: Our first step as respectable company – creating the biggest in the world network of branches with providing services from micro-accounts to the highest investors’ deposits – is already done. Branch network is opened in 30 countries of the world and it will be increasing. Moreover, an important constituent of the company’s growth is valuable providing micro-real accounts services. In InstaForex Company 1 lot can be diminished to 10000 units of account, what in its turn allows a client to have several accounts in one at once. Also a trader easily can trade using different volumes from 0.01 lot. Therein lies an advantage and a popularity of micro-accounts. Our company works with micro-accounts during long period, and it may safely be said that the company’s micro-real accounts are much sought after, what makes us one of the leaders in this area.
The second InstaForex step is our own investment in successful traders. Serious investors require experienced traders, who need to be brought up, selected and combined with investors, then sign a contract with severe conditions and control finance. It is not necessary to convince investors of putting up money (like government officials do, not understanding the investors’ logic). You should better demonstrate them benefit by the example of profit-making traders results. In our turn, we guarantee qualitative service for investor to be able to overlook and choose trustful manager for himself within a work of PAMM-account system.
The third InstaForex step will be more surprising. So and in no other way you can take and keep the leading position in the brokerage service niche – providing the services, which no one could or did not want provide before you.
J: Thank you. It is pleasant to see the brokerage company of a new type, trying to combine the interests of traders and investors, as well as to write in short time, that InstaForex Company became the certain world leader of micro-accounts. What would you like to wish traders-beginners?
InstaForex: Thank you. First of all "learn, learn and learn again". There are no investor’s funds problem in the world, but there is a serious problem of experienced and stably making profit traders deficit.
Magazine "Stock Leader", October 2009
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