Dmitry Savchecnko, InstaForex deputy director gave an interview to the traders’ online-magazine “Stock exchange leader”. We have translated it for our blog-readers.
Is Forex broker a casino, and is MT4 a new form of roulette wheel?
SEL: The number of dealing centers amounts to tens and always increases. Traders’ opinion concerning a broker as about a group of businessmen, who bought MT4 trading terminal (“roulette without risk of loss”) and collect money with the only aim to share it between each other, is not a secret for you. 97% of traders lose their money themselves, 3% are helped by dealing centers, those who succeed to earn are not given with their profit by brokers. There are already 5 cases of profit not paid by different Forex brokerage companies among the Academy audience. Is traders’ opinion about dealing centers and Forex-brokers correct or not?
DS: It is rather true. Forex-brokers are reflection of our life, which has everything in, and it is important to distinguish one from another. There are dealing centers and brokers in Russian Federation as well as abroad, which fall under the described scheme. Every trader should be able to pay his/her attention to nuances, which really can help to tell a safe broker from a “bucketshop”.
How can trader tell respectable broker from a “bucketshop”?
DS: All criteria of a trustful broker, which you can find in the Internet (paid hosting, analytics and so on), became obsolete – all have paid sites and almost every broker provides analytics. Search an answer to your question in 2 directions:
- who, when and why has established his/her dealing center?
- how much has he/she invested in the business?
If you see ads, how “a group of experienced traders” left trading with no reason and decided to felicitate people by opening a new brokerage company… or how quite new dealing center suddenly announces about unexampled trading conditions, I doubt whether it is something serious. However, there are so many traps in our live, so it is hard to remember, which one you have not been lured into yet.
SEL: Ok. Let’s consider an exact example. I am a trader, who would like to open 1000 US dollars account with you. What does happen to my money, especially if I start making profit?
DS: Nothing really will happen to your funds. They will be at your balance and be increasing or reducing in accordance with the effectiveness of your work. InstaForex is a major international Forex-broker with more than solid investments. We make profit only by spread. We came into the market not for 1 month or 1 year. We are going to stay there as long as it will be possible. That is why it is inexpediently for us to apply “dirty schemes” or play with trust management. We have formed client’s portfolio, that is why we successfully develop due to the only and absolutely transparent source of income – spread from deals.
So I would like to advice once again all active and potential clients to separate the wheat from the tares.
Why does InstaForex gift Hummers to the best traders?
SEL: Who established InstaForex Company and what for? I watch you for a long time. At first, big prizes for contests among demo-accounts, then the greatest campaign in the Internet “Hummer H3 to a jammy fellow”. Are the costs repaid in circumstances of the global financial crisis?
DS: You hit the mark, the sense of our company and its difference from other world brokers is work for future. InstaForex Companies Group is a group of investment companies from different corners of the Earth, understanding well that investments as distinct from currency speculations are LONG-term projects.
Why did we come to the brokerage service market and start occupying it intensively? Because we saw who and what for launches brokerage companies and what services are provided to traders. It looks terrible from the inside. Our style is unique, we first started investing in traders, who need to be brought up. The majority of dealing centers (in contrast with investors) absolutely don’t need it.
SEL: We have noticed this by InstaForex relation to Masterforex-V Academy. While some companies prohibit any mentioning of MF, your staff even send traders to us for education.
DS: Relation to your Academy is also evaluating criteria for Forex-broker – which brokers need experienced traders and which don’t. We do not only recommend Masterforex-V to the most talented traders, but in the nearest future we will make the next step within our strategy of trader and investor interests’ combination. Now we are carrying on talks with MF regarding organization of wide-ranging contest among the Academy members during 1 – 2 months with big prizes.
For example, the first prize-taker in the demo-contest among the MF Academy audience will get 3 thousands USD in cash and 30 thousands USD as initial deposit to trust management account. If trading is profitable, an investor account will not be limited by volume. There are no investment problems in the world (even under the conditions of the global financial crisis), there are other problems (traders’, investors’). We are planning to held such contest (with checking stop-out and other criteria by our investment department) regularly.
SEL: Describe the main steps of your company’s development. What is done already, and what do you have to do?
DS: Our first step as respectable company – creating the biggest in the world network of branches with providing services from micro-accounts to the highest investors’ deposits – is already done. Branch network is opened in 30 countries of the world and it will be increasing. Moreover, an important constituent of the company’s growth is valuable providing micro-real accounts services. In InstaForex Company 1 lot can be diminished to 10000 units of account, what in its turn allows a client to have several accounts in one at once. Also a trader easily can trade using different volumes from 0.01 lot. Therein lies an advantage and a popularity of micro-accounts. Our company works with micro-accounts during long period, and it may safely be said that the company’s micro-real accounts are much sought after, what makes us one of the leaders in this area.
The second InstaForex step is our own investment in successful traders. Serious investors require experienced traders, who need to be brought up, selected and combined with investors, then sign a contract with severe conditions and control finance. It is not necessary to convince investors of putting up money (like government officials do, not understanding the investors’ logic). You should better demonstrate them benefit by the example of profit-making traders results. In our turn, we guarantee qualitative service for investor to be able to overlook and choose trustful manager for himself within a work of PAMM-account system.
The third InstaForex step will be more surprising. So and in no other way you can take and keep the leading position in the brokerage service niche – providing the services, which no one could or did not want provide before you.
SEL: Thank you. It is pleasant to see the brokerage company of a new type, trying to combine the interests of traders and investors, as well as to write in short time, that InstaForex Company became the certain world leader of micro-accounts. What would you like to wish traders-beginners?
DS: Thank you. First of all “learn, learn and learn again”. There are no investor’s funds problem in the world, but there is a serious problem of experienced and stably making profit traders deficit.
Source is “Stock exchange leader”
The interview was obtained by Darika Isakova,
interpreter-translator of InstaForex