This
is
especially
true
of
e-brokerage
services,
where
the
entire
trader’s
journey
depends
on
the
broker
and
the
trading
platform.
Any
misstep
on
the
part
of
the
broker
can
be
detrimental
not
only
to
the
client’s
experience
but
also
to
their
funds.
So,
what
are
the
most
common
red
flags
in
brokers,
according
to
Malaysian
traders?
The
signs
of
unreliability
When
asked
what
signs
are
most
indicative
of
a
broker’s
unreliability,
survey
participants
named
the
following
red
flags:
-
chart
manipulations
(54%)
-
slow
deposit
or
withdrawal
transactions
(51%)
-
price
slippage
and
non-execution
of
orders
without
any
visible
underlying
market
reason
(36%)
-
the
broker’s
quotes
significantly
differ
from
the
quotes
of
other
brokers
(34%).
These results show that a predictable and fair trading environment is a crucial factor determining Malaysian traders’ willingness to engage with a certain broker. As things stand, the broker is responsible for providing complete transparency and adequate proof of value to its clients.
As a trusted and highly experienced broker, Octa works with independent, third-party liquidity providers to offer non-distorted market prices to its clients. In turn, liquidity providers aggregate prices using data from multiple sources, including banks and large financial institutions. As a result, chart prices are beyond the broker’s control.
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.
Fair
commissions
and
fast
withdrawals
are
top
priorities
When
asked
what
broker’s
flaw
is
the
major
deal-breaker,
Malaysian
traders
highlighted
three
main
factors:
-
high
spreads
and
disadvantageous
trading
commissions
(36%)
-
slow
deposits
or
withdrawals
(25%)
-
non-transparent
commission
model
for
deposits
and
withdrawals
(18%).
It is safe to say that withdrawal-related issues come to the fore for Malaysian traders when considering brokers’ red flags. This is further substantiated by the fact that 47% of survey participants said they would stop working with a broker in case of unjustified delays in or blocking of withdrawal transactions.
Another 23% of respondents indicated they would immediately take their trading elsewhere if their broker charged higher withdrawal commissions than previously indicated.
At the end of the day, the only way to make sure your broker is trustworthy is by trying it out yourself. For example, Octa addresses this concern by offering a highly efficient and fast withdrawal procedure that helps traders establish a long and trusting relationship with the broker and focus on trading instead of background factors.
Whom
to
trust?
The
difficulties
in
choosing
a
reliable
source
of
insights
and
updates
are
a
well-known
issue
in
the
trading
community.
The
spreading
of
misinformation
and
the
proliferation
of
online
experts
with
questionable
credentials
can
cause
a
lot
of
confusion,
especially
among
less
experienced
traders.
When
asked
what
signs
indicate
that
a
source
of
information
can
be
fraudulent,
52%
of
respondents
highlighted
aggressive
advertising.
The
most
popular
answers
also
include:
-
promotion
of
scam
investment
projects
(37%)
-
trading
signals
manipulations
(37%)
-
lack
of
online
reviews
(31%)
-
unconvincing
member
success
stories
(31%).
This distribution of answers in Octa’s survey reflects a high demand for security measures on the part of the broker. Malaysian traders’ stance calls for thorough and efficient know-your-customer procedures that help brokers safeguard their clients from fraud and scams. Aggressive, self-imposing tactics in broker’s advertising also come across as a major red flag.
Safety
remains
in
the
limelight
As
the
previous
question
shows,
various
kinds
of
fraud
are
significant
issues
for
many
Malaysian
traders.
What’s
more,
when
asked
about
fraud
in
trading
education
and
mentoring,
23%
of
respondents
professed
to
know
traders
who
were
scammed
by
fake
educators,
coaches,
and
mentors.
What’s
more,
16%
have
paid
for
false
trading
signals,
and
14%
have
paid
for
a
useless
trading
course.
These results reflect a justifiably high dependency on efficient security measures and tools on the part of a broker. The modern cyber threat landscape is very complex, and keeping track of the best international practices is a must for any client-oriented broker. It is only natural that global brokers have a competitive edge in that respect. Their extensive reach allows them to absorb and integrate the most advanced security practices and tools from various regions, offering their clients the most efficient solutions.
Conclusion
According
to
Octa’s
survey,
Malaysian
CFD
traders
tend
to
view
the
ease
and
speed
of
withdrawals
as
a
direct
indicator
of
a
broker’s
trustworthiness
and
reliability.
A
fast,
hassle-free
withdrawal
process
allows
traders
to
feel
more
in
control
of
their
financial
decisions,
ensuring
they
can
access
their
profits
or
capital
when
needed.
The research also established that Malaysian traders prefer to work with brokers that provide a sense of security and transparency. They look for fair and consistent processes and want to avoid hidden fees or complex withdrawal conditions. If these requirements are met, brokers will have a much higher chance of establishing long-term relationships with clients 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.
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