Undeniably, there are many valid reasons to leave a broker and join another, especially if you are an active Forex trader. At the same time, sticking to one company can also be beneficial in a way — you build up trust, you get used to all their small peculiarities, and with years it becomes harder to close that account.
At least a third of this blog’s visitors traded Forex for more than a year. According to one of the polls, about 80% of readers used at least two or more brokers. Which means that there should much diversity in how long traders stuck to trading with the same company. I think there are 5 major reasons for why traders stay with their brokers for a long period of time:
Reliability and trust is not something that can be easily discarded or gained in the world of online Forex trading. The fact that a trader has a long-term relationship with a broker will reinforce both factors and will make moving to another company a less likely choice as time goes by. Even bad reviews from other customers or a significantly better acclaim of some other FX broker will have hard time inclining such a trader to leaving his trusted company behind.
Service quality should probably be the first in the list, but traders, however clever the most of them are, are rarely that rational in their preferences. Regardless, the responsive customer support, extra fast deposit and withdrawal processing, seamless order execution, and low spreads will result in a satisfied trader. A satisfied trader will be reluctant to seek a better place to hold a live account and will spend more time with company that provides a high level of quality.
Platform and conditions specifics may sound like a minor unimportant issue. However, those little nuances is what makes your personal trading style work. You might no know that, but as you have already traded with them for so long, you have gotten used to them. For example, your broker could be one of the few to offer some rare exotic currency pair or a metal-based account that you cannot live without.
Funds’ security is also a serious concern. Withdrawing funds and then moving them to a new account involves fees, risks, lost time, and missed trading opportunities. Such perspective alone could kill a trader’s desire to swap brokers.
Laziness is rarely considered by brokers themselves when they develop marketing strategies and invite an established trader to transfer his or her live account to them. In reality, many traders are just too inert to go through the hassle of registering a new account, sending all the verification documents, making big withdrawals and deposits, getting used to new trader’s cabinet, etc. It is very hard to sway such a trader into abandoning a broker even if the trading conditions there are subpar.
One of the brokers I trade with holds my live account since August of 2005. The broker is AGEA, which was called Marketiva when I had opened an account there. That is more than 10 years of relationship with the same company. I still use them because I am satisfied with the service and my account size there fits the requirements of the trading strategy I employ. And how about you?
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If you want to tell us more about what broker did you stay with the most and why, please feel free to do so using the form below.
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