Why Brokers Aim for the Long Term: Octa Broker’s Expert Explains

However, the trick is that positive outcomes in the long term are only possible if the relationships between a broker and its clients are mutually beneficial. Experts at Octa, a globally regulated and trusted broker since 2011, explain why, for a broker, aiming for reliability and client trust is more profitable in the long run than questionable business practices that may bring fast gains.

The Role of Reputation for Brokers

For most global financial brokers, the entire business model depends on clients’ ongoing participation. The higher the volume traded by clients, the higher the broker’s profits. This is why, in the world of trading, reputation is everything.

A broker that operates according to best practices in terms of fairness and transparency establishes a high level of trust from the get-go. This is a significant advantage that can’t be matched by dubious tricks or chart manipulations, such as price distortions or slippages. In turn, traders who suspect that price charts have been intentionally changed or that information has been presented in a misleading way will not engage with such a broker for long.

Moreover, suspicions of unsound practices often spread rapidly among trading communities, damaging the broker’s reputation. By contrast, a broker providing clients with reliable price feeds, transparent trading conditions, and clear information on market mechanics builds credibility, translating into consistent long-term profit.

Brokers cooperate with regulatory authorities to avoid various manipulations and establish sustainable and ethical practices in the trading industry. By meeting the requirements of regulatory bodies and obtaining the respective licences, brokers show that their processes are on par with the benchmarks, and their clients can safely trade with them.

Why Engaging in Manipulations Doesn’t Pay Off

While questionable practices like price slippage and chart manipulations may provide a temporary gain, it is a shortsighted approach for any experienced and large broker. Altering price graphs or creating misconceptions about execution speed and spreads can result in short-term revenues from clients who lose more quickly. Yet such practices guarantee high client turnover, regulatory scrutiny, and the eventual collapse of trust.

Transparency, on the other hand, creates a steady flow of trading activity. Clients who know they are operating in a transparent, regulated environment are more likely to trade successfully and remain with the broker for years. It is the key consideration for any broker, since the broker’s profits come not from exploiting clients, but from fostering their growth and encouraging their continuous engagement with the platform.

KYC and AML Procedures

To achieve transparency, trustworthy brokers use the processes of know your client (KYC) and anti-money laundering (AML). At this point, both of these protocols have become the golden standard of the financial industry—and for a good reason. These are not simply requirements imposed from the outside, but core pillars of reliability.

The KYC process ensures that the broker understands who it is dealing with and confirms that the trader’s identity and source of funds are legitimate. This set of measures protects the broker from fraudulent activity while assuring traders that the community they are part of is genuine and secure.

In turn, AML procedures safeguard the trading platform from becoming an exchange for criminals. By strictly monitoring deposits and withdrawals, the broker reflects its stance on maintaining integrity. When traders see these processes handled responsibly, they understand that the broker values legality and security over quick, unscrupulous gains.

Conclusion

At the end of the day, successful brokers easily decide between manipulation and transparency. The latter is legitimate and fair to traders and is more sustainable and profitable in the long run. Manipulative practices may generate short-lived income but always lead to reputational damage, client mistrust, and legal consequences. On the other hand, transparent, fair, and well-regulated e-brokerage practices foster long-term trading activity, client retention, and steady profits.

Disclaimer: This article does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences.

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 61 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities.

Since its foundation, Octa has won more than 100 awards, including the ‘Most Reliable Broker Global 2024’ award from Global Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from Global Brand Magazine.