It is better to use a Broker Or a foreign trade company Culture?

Friday, October 22, 2010

I had an interesting conversation with a client computer in my Office yesterday. He had just paid $ 5,000 at 3 p.m. for trading education (in foreign exchange in particular) and have come to me (not the provision of training) for clarity reasons some techniques that were taught. This article is a paraphrased editorial the conversation we had.

In commercial training providers; there are two kinds of external training providers (no ties with a House ship brokerage) or business education is an internal or external drive a broker. Each has positive and negative, and this article will discuss some of this and will seek to make recommendations.

Foreign education enterprises is generally working in this way, "come to us for trading education-will charge you X amount and will teach you a few things, which we will discuss today, but here are some testimonials.

Securities Brokerage firms usually work differently. Education (or often "promeletimenis") is provided free and broker then waits for you to trade with him.

Recently, several companies have bridged and external training, owning a business brokerage, charged for education, but still pushing to trade with them.

Training firms have the advantage that only make residual income (by selling further "sophisticated commercial courses) if satisfied students.The risk for these companies is that the education provided is not a "value for money" to encourage students to buy lessons back end; The inability of these companies is that usually teach in a bubble and not often instructors with real world trading experience.Is the old adage, those who can do, those who can't teach.

On the other hand brokers which are generally trained brokers do their training.Courses cannot as a structure, but they come by experienced market professionals who are on the day of their purchase methods for testing. negative with this kind of education is that broker may be encouraged to train in "high-frequency trading" that enhances or personal income, through the client during trading account.

In the Middle, the strategy hybrid, receive the best and probably worse than two worlds. Hybrid educator customers have the luxury to pay several significant resources to learn from a professional market which still can encourage the client to trade account.

So, what's the answer?

First, a larger question is whether the customer wishes to learn actually marketed, or however it wants to invest in the market. If the customer wishes to invest, you should try a managed or mutual Fund, or else find a good broker who trust them.

If the client truly intend to learn how to trade, I would say that the best strategy is to find, once again, a broker that you trust and open an account with them, using the money will be spent on education. makes it clear that this is the link you wish to have this broker is under no uncertain terms that the training given by European required.

And as if Find any other professional service (Doctor, lawyer, accountant), nothing will ever win a cross-reference.


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