Expectations vs. reality in trading: Octa broker's perspective

In trading, success greatly depends on your ability to take a step back from a situation and assess it without bias. This is much easier to do when your understanding of financial markets is not influenced by overly optimistic or downright false expectations that you bring with you to each trading session. Octa, a globally regulated broker since 2011, breaks down some expectations traders build up when starting trading and explains why these starting points are better left behind.

Expectation #1: All brokers offer transparent conditions

Depending on their experience with various financial services, some traders may naturally assume that what they see in a broker's ad is precisely what they will get when engaging with this broker.

Reality: Unfortunately, not every broker diligently applies the fees and conditions specified in their marketing communications. What's more, in some cases, a new trader may encounter hidden costs that were not specified in the broker's terms and conditions. In the same vein, other opaque brokers' practices, like introducing additional costs in case of market turmoil, may transpire over time.

To make sure the broker you want to engage with can be trusted, always scrutinise online reviews before making your first deposit. Octa also recommends starting with a modest sum and ensuring the spreads and fees are what you expected. Another factor that significantly contributes to a broker's reliability is extensive market experience and global reach. For example, Octa uses its successful track record of more than 14 years across multiple regions to ensure fast order execution, secure data processing, and better quotes for traders.

Expectation #2: All brokers provide instant withdrawals

When starting to engage with a financial broker, an emerging trader may assume that withdrawing their gains is always as fast and easy as making a minor cash transaction during regular business hours.

Reality: Withdrawal time depends on the broker, varying from several minutes to several weeks. Octa's surveys show that up to 50% of traders have experienced serious issues with cash withdrawals, such as being unable to make the transaction through a preferred payment channel or facing unexpected fees.

As a globally regulated and trusted broker, Octa recommends carefully reading online reviews first to verify that the vast majority of a broker's clients are happy with their withdrawals. It also helps to test a broker's withdrawal process before depositing a more significant amount—this will allow you to confirm that your broker of choice scrupulously follows its terms and conditions and doesn't introduce any hidden costs. On its part, Octa draws from its experience in engaging with various payment systems worldwide to provide an efficient, fast, and reliable withdrawal mechanism.

Expectation #3: 90% of success is finding a good strategy

When forming their perception of financial markets, many traders rely way too heavily on social media and advertising content. For example, internet gurus often promote 'winning' strategies that are supposed to pretty much guarantee you consistent profits.

Reality: Any strategy, no matter how time-relevant and sophisticated, requires customisation and backtesting. Financial markets are constantly changing—albeit according to certain historical patterns—and seasoned traders are always looking for news and insights. This way, they can timely fine-tune their strategy and take advantage of major market fluctuations.

To sum up, every strategy needs to be adjusted to specific market conditions, timeframes, and instruments. Mindlessly copying strategies is a recipe for failure.

Conclusion

The most significant mismatch between expectation and reality in trading is underestimating some less-than-obvious nuances that must be taken into account to maximise your potential. By customising your trading strategy of choice to your specific environment and choosing a reliable broker that offers fair and transparent trading conditions, you make a decisive step towards better outcomes.

Disclaimer: trading Contracts for Difference (CFDs) carries a high level of risk and may not be suitable for all investors. Emotional trading can increase this risk. Always trade within your means and understand the risks involved.

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 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.