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The potential to generate profits with CFDs and FX trading is far greater than online gambling, whether you love a local football team or hope for luck spinning the roulette wheel.
On the other hand, however, there’s nothing wrong with online gambling, as long as it’s for fun and you go in knowing you are very likely to lose money. Gambling is just that: you bet money, hold your breath and hope for the best.
Obviously, there are no guarantees with any type of trading, but trading is much more than just a random bet. The sense of accomplishment in closing a profitable position result from smart analysis and timing, which only an educated trader can do.
There are at least two areas where a good broker can help traders succeed by avoiding the temptation to gamble with financial transactions.
The first is regulation. A good broker, like Libertex, is regulated by CySEC (Cyprus Securities and Exchange Commission). This regulator covers European traders with all the rules and practices to ensure that users are treated professionally, accounts are safe and all trades are executed fairly.
The second is education. Any broker that doesn’t offer constant, consistent education or provide market news to its clients is not providing excellent service. Indeed, Libertex provides a vast array of instruments to teach new CFD and FX traders about market analysis and risk management.
Bradley John Alexander, Libertex Senior Analyst and FX and CFD trading expert, says:
“I can’t claim to have ‘seen it all,’ but I’m happy to recount the incredible evolution that the world of retail trading has experienced over the last few years. When I first got involved in trading, the sales tactics aimed at aspiring traders were akin to aggressive time-share pitches, get-rich-quick schemes, unrealistic bonuses, ridiculous leverages and the idea that you could become an expert trader by spending thousands on an intensive two-day course. To add insult to injury, the world was full of unregulated brokers who were ‘slipping’ quotes and making it difficult for good retail traders to make a profit. This was backed up by aggressive ‘customer support’ executives, whose only job was to encourage you not to cash in your profits and deposit more of your money into your account”.
In Europe, it’s well known among traders that reputable brokers under CySEC or FCA regulations must restrict or suspend trading in highly volatile market conditions once in a while. The conditions of these limitations are regulated, set out in the Terms and Conditions section and designed to protect any account and ensure that the broker maintains financial compliance.
Recently, the international media has been drawn to the world of CFD trading in the United States, where the industry is quite different than in Europe. Indeed, a large group of retail traders, stuck at home under lockdown, many with government stimulus funds to fund their accounts, took on Wall Street. Driven by chatter on social media, these traders sent the markets into a frenzy.
Unfortunately, when some US reputable platforms were forced to suspend trading on a few equities, retail traders and politicians simply didn’t understand the concept (or the law) and cried about the restriction of trade and civil liberties.
Moreover, it doesn’t even look like some trading platforms handled the situation very well. This wasn’t just bad customer service; it was a clear indication that they have no desire to educate their clients.
The moral of the story? Education is the key to giving traders new skills and the ability to trade professionally instead of gambling. Let’s make the best of the journey into CFD and FX trading with a reputable, regulated broker that offers proper education: Libertex. It provides convenient, fast and secure access to the financial markets, over 250 tradable assets, exclusive Trading Signals, a €50,000 demo account to practice with and payment methods such as PayPal, debit and credit cards, wire transfers and many more.
Libertex also provides a very comprehensive financial and trading education programme available for free so that both expert and beginning traders can Trade For More on their smartphone with the Libertex app or their computer browser.
