This is what I was afraid of. We are going to lose competition and the perks that go with it. How long till there are no free practice accounts? How long until there are higher commissions or spreads?
Like the lending crisis of the US. We had a true lack of regulation so yes, the big banks got out of control. As a full time and successful real estate agent, I saw the other side. The stupid, foolish, reckless people that rushed into buying homes they could not afford. When I asked them to be careful or reconsidered...they would only get insulted and angry at me for trying to be the voice of reason. The funny thing is...it was not the poor people. It was the middle class and upper class types that did this. The lower income types were scared, cautious and sensible.
I suspect this is the exact same problem with Forex brokers. True, there are scam brokers out there and rip offs at every corner. There are also dumb people without patience to step back, relax, use a practice account while they take their time and research how to choose a broker, and do their due diligence as a whole. But no..they get excited think Forex = fast money. Greed clouds their mind and steers their judgment and 60 days later they are broke or scammed.
Meanwhile, the smaller, honest brokers trying to carve out their slice of the market, trying to grow, trying to provide competition, slip away. Partly because the average person cannot exercise some common sense and self control.
A fool and his money are soon parted. An old but wise idiom. This has not changed and this never will. No one can be protected 100% of the time from 100% of the harm. You must account for yourself as well.
Last edited by BrianSNJ; 10-03-2008 at 11:16 AM.
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