There is not much competition when it comes to success in the currency market. There is undoubtedly a significant disparity when 95% of traders lose money while only 5% profit. Perhaps you’re wondering why that is. If you are among the 95%, I’m confident that’s what you’re thinking.
Some people believe that intelligence is the most significant factor. that the 5 percent are somehow just that much smarter than the other 95%. that just 5% of Harvard MBA graduates are in finance or economics. Just laughable, this. The reality is that MANY successful forex traders didn’t even complete high school.
Another widespread misunderstanding is that only the most expensive “state of the art” software is used by the most successful traders. In all honesty, the Forex trading competition you use isn’t all that important. Usually since businesses are in the business of selling you goods you don’t need; you don’t hear that too frequently. But many successful traders earn a career by trading the forex market using totally free tools like Meta trader.
Success truly has little to do with the instruments you employ. It just comes down to having the right market knowledge. The 5 percent – 95 percent disparity would narrow if most traders invested the effort to better understand how the markets function. The truth is that there is absolutely no justification for such a large gap.
Therefore, it is no longer a matter of whether brokers earn from forex trading competitions or not. The appropriate query is as follows: How do they turn the information heaps into actual cash at the end of the competition? From what do they derive their profits?
Naturally, nothing is as straightforward as it first appears to be. Nobody knows it better than us, who have probably previously tested dozens of different forex trading strategies. Anyway, it should be evident that after the trading rally is over, the company’s sales personnel begin calling, emailing, and otherwise contacting the rival traders. They must act swiftly, as traders may opt to switch brokers and move their cash to the new company that they have just had a positive experience with if the service offered during the trading competition was of high quality. The majority of traders use emotional reasoning to decide which broker to use.
The sales team probably won’t be able to close every trader who entered the forex trading systems contest, and they won’t be able to convert every contestant into a paying customer. And let’s be honest: It is a foregone conclusion that the greatest offers will also be rejected for a wide range of reasons; nonetheless, brokers will naturally delay accepting rejection until later. They will target the customers, and as a result, a marketing campaign is launched with newsletters, exclusive deals, savings, instructional materials, and so on. To attract new customers, they will stop at nothing.
Okay, so the primary motivation behind brokerage firms holding forex trading competitions is client acquisition? Even though this is a fantastic chance for the broker to grow its customers, my response is still NO. However, in this instance, it is reasonable to wonder what else may spur a brokerage firm to hold similar contests for forex trading systems. I’ll now share the actual information.
Brokers, rivalry, and ranking Although not just for the clients, but also for the brokers themselves, these are all crucial ingredients in the success formula. But if client acquisition is the main goal, why would a broker care about the ranking? In actuality, brokers employ trade competition as a fantastic filter for the best forex trading strategies. They observe each and every transaction, each trading balance, and the reasoning behind each trader. Throughout the entire competition, they are in complete control of everything and can witness it.
And after the competition is done and the final rankings have been established, the brokers will begin having in-depth discussions with those who earned the most pips during the game. They observe the trades regardless, but frequently they do not comprehend the Forex trading competition, so they offer the user of the successful approach a job or money in exchange for disclosing his strategy.
Sometimes, strategies are extremely simple to decode, but brokers are more likely to encounter a potent but difficult forex trading method that they are unable to understand, leading them to believe that having a personal conversation with the user would be a good option. These discussions could be advantageous to both parties or they might be a complete waste of time.
Therefore, in my opinion, it is equally vital for the brokers to run these competitions that the finest forex trading strategies be documented. Competitions are seen through the eyes of a broker as a large gaming room where many traders try to enter and some of them have a secret that brokers would like to employ in the future. The time and effort put into setting up the competition will be well worth it if the broker discovers a reliable forex trading strategy among the tumultuous, erratic, and insane traders.