Why is authentic user feedback critical when selecting an FX brokerage?

Back in the day, it took a lifetime of honest and fair dealings to gain a reputation of trustworthiness. Today, things have gotten a bit easier, as any client of pretty much any company can now get their voices heard through online comments. But as we shift from word-of-mouth “reviews” to digital ones, it has become clear that the need for accurate and authentic user feedback is a critical factor in choosing a reliable company or product. With scams, paid reviews, and other misleading information floating around every corner of the internet, one must be vigilant, and more especially when dealing with financial service providers.

The vast majority of brokers often want to make things look better than they actually are, and this is why Forex broker reviews and ratings can often be biased.

One 2021 study showed that around 70 percent of people who go online to find information about businesses, on average, read between one and six customer reviews before making up their minds as to the validity of a service or product.

While there is a general consensus on the need for authentic user feedback, the Forex market is one that we will be taking a look at to get a clear idea of the problems facing this industry and what might be done to improve it.

The issue with finding accurate feedback

There are a great many consumer review sites popping up in every corner of the internet these days, but very few of them have purely set their sites on tackling the complex world of Forex trading. While you can always head over to a site like Trustpilot to find FX brokers and read consumer reviews or share your thoughts, this kind of site is too much of a mixed bag. These oversized sites feature tens of thousands of companies, making it easy for unreliable user reviews to slip through the cracks and muddy the waters.

As a result, some brokers have taken to the practice of paying a 3rd party company to generate a positive image for them through positive user feedback, making them look better than they actually are. On the other hand, there are some shifty brokers going so far as to try and destroy the competition with an onslaught of negative reviews. This can be a very effective tactic, as shown through surveys that the award-winning customer feedback company ReviewTrackers conducted, in which 94% of consumers said that a bad review has convinced them to avoid a certain business in the past.

Another factor to consider is a lack of knowledge and understanding about the Forex market and how it operates. This has led some people to jump in blindly, have a bad experience, and then come out blaming the broker for their losses. This can be very damaging to the image of a legit broker, but there is an easy enough solution to this kind of problem.

The solutions: education, meditation, and moderation

Looking at the problems faced in the accurate FX user feedback space, there are 3 obvious things that can be employed to help fix the problem, but not all of them are very popular.

Education

This one should come as a no-brainer. A solid foundational education in the field of Forex trading will help most people to avoid scams or misunderstandings about what they will actually be getting. While it is always advised that you read the T&Cs before ticking the box saying that you agree, these are often long complicated documents filled with a lot of legalese jargon that the average Joe Citizen can not understand. As such, a broker should always offer clear info as to their fees and what they provide. If this comes with explanatory videos and lessons on how trading works, all the better.

Mediation

While this might not seem like it is directly involved in the user feedback experience if someone posts some negative feedback, there is a good chance that the FX broker will be more than willing to help that person sort things out. This can be an extremely useful tool, especially if the person misunderstood some aspect of trading and feels like they have been cheated even though everything was above board.

Moderation

Moderation has become somewhat of a dirty word over the years, as it has been dropped into the realm of censorship and coverups. But, when done properly, this can be one of the most useful things for keeping the user feedback industry free from the punters trying to manipulate the industry. This practice should not be seen as a way of weeding out those that try to swing public opinion through reviews. It is often easy to spot spam reviews that simply say things like “Good company” or ”Worst broker ever”. These kinds of reviews are not helpful at all, but can easily make a company look great as they keep getting 5 starts, or vice versa. It should be noted that in order to do this properly, a platform has to be dedicated to Forex and those running it need to be experienced enough to be able to spot the garbage before it starts piling up.

Summing it up

The best way to get around the issues facing FX brokerage feedback is to find a site that is dedicated to providing a platform for traders to voice their opinions, whatever they might be. Today there are many sites around that are dedicated to providing FX traders with educational resources, helping them to mediate with brokers, providing quality control, etc. Sites like investfox, BabyPips, and Forex Peace Army are all key players in different aspects of this industry and are helping FX traders from around the world to get the best quality information, authentic user feedback, and education.