Forex Guru’s And Brokers Partnerships: The New Worrying South African Forex Industry Trend

Brokers are not a trader's best friend. Period. The whole business model of most brokers is to profit from losing traders. It is a well-known fact that 90% of traders lose in the market, so it is in the best interest of the broker to accumulate as many users of their service in order to make money. They have a number of marketing tools out there that they use to recruit users, however, their latest tool up their sleeve is the use of well know Forex Gurus to push their agenda.

Forex Gurus are supposed to act as the teachers who are helping people learn how to trade. Most of these gurus charge for trading courses so it is in their best interest to help traders grow. This partnership with brokers however exposes the truth of the courses they offer and the success of their students. These brokers offer these Gurus affiliate programs whereby these Gurus get a 40-50% slice of the profit a broker makes off of each trader who signs up to the partnered broker using the link provided by the Guru. This is worrying because the very Gurus who are meant to be teaching others to trade and succeed are now shifting their model to just getting as many people/students to sign up to the broker they are partnered with and continuously milk these people. It is no longer necessary for the guru to have successful students thrive.

What makes this worse is that the very money which these gurus earn from the partnership they show it off as market profit withdrawals from the broker. This just motivates more people to sign up for their trading course and just be funneled along to the slaughterhouse. Some of these gurus are not real traders at all. The trading result they post is demo accounts made by the brokers. There are many instances where students have complained that a guru gave one signal yet posted results of the opposite when the trade turned against them, which just shows how shady the whole broker/guru partnership can get.

It is best that you watch out for these traders. If you come up to a social media page of a forex guru who is heavily pushing the agenda of a broker it is best to watch out for this individual and be careful how you associate with them. The best thing to do is always use WikiFX when you are looking for a broker. This app is connected to every regulatory board worldwide so you are able to find the best regulated and verified brokers. They also keep a list of all the known scam brokers so you can already avoid the bad broker before you lose your money. For any broker that any person recommends, make sure to look them up on WikiFX.