Why don’t some promote certain brokers?
With the rise in both media and advertising interest in online forex brokers in recent years, moreover because the proliferation of websites specialized within the forex industry, some might imagine that the most effective brokerage firms are those who get a greater number of various ratings, or whose links are spread across many and lots of websites, under the idea that this spread is just geared toward achieving the interest of the trader. Unfortunately, the last statement isn’t entirely true.
Introducing Brokers (IB) within the Forex world
Many online forex brokers offer affiliate programs, which reward marketers with either a hard and fast amount for every client or a percentage of the brokerage firm’s earnings. Considering that the majority of the net forex brokers rely exclusively on the profit generated from the spread for his or her revenue generation, this suggests that the spreads offered by these brokers are above normal to offset the prices paid to the Introducing Brokers. This fact isn’t an enormous problem from the purpose of view of competition because the overwhelming majority of forex brokers already implement this mechanism to urge marketers to direct traders to their sites.
The problem with using these marketing methods, however, is that they’ll intentionally ignore a number of the trusted brokers who refuse to use these promotional methods in an endeavor to cut back the spread costs of the particular trader, thus offering better conditions to work within the market. This approach is predicated on not resorting to affiliate programs and these varieties of brokers seek to succeed in their clients themselves.
Oanda forex broker review
Oanda is one such company that doesn’t implement affiliate programs, but perhaps the foremost famous during this field. If you compare Oanda’s trading conditions with those of other forex brokers, we will say with all confidence that Oanda offers very competitive terms, far better than the quality terms available with many online brokers. The list of advantages includes:
Trade any parts of lots (up to 1 unit):
The ability to line stop and limit orders with extreme precision;
Offer variable spreads (note that this method comes with additional risks), but they’re usually below other brokers;
interest on money second by second;
Oanda provides a collection of the most effective trading tools like the economic calendar, currency converter tools, and plenty of more;
Even though the corporate provides the MetaTrader 4 platform, their original platform is more suitable for beginner traders, and therefore the average trader can use it as long as he doesn’t need any of the unique features of MT4.
The first three points are useful and important for all forex traders. But the question remains, why is not the talk Oanda circulating on the net with so few reviews about the company’s services? Certainly, an outsized a part of the solution to the current question lies in what we mentioned earlier, which is that the corporate seeks to scale back the spreads for its customers by not using IB programs, and thus there’s no interest for many forex websites to speak about Oanda.
There is a very important note that you simply shouldn’t miss during this regard: we never claim that Oanda is that the best broker ever because it really isn’t. It’s just that we do not think it gets the eye and rating it deserves compared to other brokers. To be objective in our evaluation of Oanda, we’ll list below a number of the shortcomings we noticed within the company’s services:
Oanda operates on a market maker model, which suggests that it acts as a counterparty to a minimum of a number of the deals it executes on behalf of its clients. Some traders see during this model a sort of conflict of interest that will negatively affect the credibility of the corporate. the choice option during this case is usually to trade with an ECN broker.
Some traders complain that Oanda stops working all the time.
Although the first Oanda platform is efficient, it’s often slow.
In recent months Oanda has start to launch an affiliate program for IBs, but it’s only available in some regions, and therefore the company doesn’t implement it within the US. that’s why it will be said that Oanda remains ready to offer low spreads, a minimum of for US traders.