Maybe this is a stupid question, so help me out here, but I’m wondering why brokers have so many so called ‘analysts’ working for them?
Isn’t the point of a broker to provide a service to people who are analysing the markets themselves?
I’ve just been watching a news video in the Reuters website, and they interview the ‘chief analyst’ form CMC markets. CMC are not betting on the markets themselves (unless they’re market makers - and even then aren’t they supposed to just take the opposite side of their clients trades?) are they?
So why do they care where the market goes, as long as their clients are taking positions?
Just wondering as I’m always skeptical of brokers that have loads of ‘analysts’ working for them!
Some brokers provide signal services & they also trading forex. So they need Analysts. They also use these analysts as an internet marketing strategy to promote the broker.
Yeah, it’s purely a marketing thing. They can attract more relevant users to their website if they provide services that related to their primary one. It’s for the same reason that you can go to some Home Improvement store websites and they will have articles on DIY projects and “Ask a Specialist” type things. More relevant users is better for Google means more opportunities to attract new customers.
I would suggest the “pundit” tag, it’s more appropriate. For example, two of my brokers, both Trader’s Way and FXCM do provide detailed analysis and what’s the bet they use multiple sources for the same?
And frankly, nearly every broker prefers to do the same, to cover all bases, provide additional services, etc.
The mistake that I have made in the past many times was that I would trade on the basis of their anaylsis, now I enjoy their analysis and view it for what it is - an opinion.
I do’nt really care whether I agree or disagree with their opinions, I just simply listen, by listening I broaden my understanding of the market, because I ‘enjoy’ the market then maybe my trading improves.
It’s like reading editorials on the same issue from different newspapers…each one gives a spin on the latest market news, impact, etc and we have to assimilate all the info and decide on our entry/exit options.