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Why We Use Disclaimer in Our Funds Management Agreements

Posted In: Forex Trading   Posted On: 2020/06/04 12:16 PM    Posted By: ituglobal




Great brokers like Deriv.com. Tickmill.com, FXopen.com, etc. give disclaimers. It’s not because they will steal you money or force you to lose. It’s something legal, and it’s also to make the public ware of important facts about trading.

 

I know a popular CFD company in the UK who says: "87% of traders will lose their initial capital." This is part of the disclaimer that pops out when you visit the website. I cannot mention the website URL here. But they are good statisticians, mathematicians and data scientists. They can see what most of you cannot see. It's not a good thing to be talking as if trading is easy.

 

We use disclaimers because of uncertainties – which are our ally anyway. We don’t know what the markets will do next, but we know that we will always survive.  How many legitimate companies can say in advance how much they will make? Good companies declare profits only after it has been made (usually on a quarterly basis). We live in an uncertain world, but with good business strategies, certain companies usually come out triumphant. Only scammers will promise you big profits over a short period of time.

 

That is why many people get it wrong. No-one knows what they market will do next but we have found a way to stack the odds in our favor and mitigate risks. We're are grateful for whatever the markets can give us. We cannot say how much it is going to be. The profits are known in hindsight, not in advance. Airlines, theaters, artists etc would be wrong now if they thought they knew what they would make in advance.

 

Do you need guarantees? I have seen too many “funds managers” who give guarantees of certain amounts of money – but only for them to lose investors’ money and run away. Yet, investors keep on looking for guarantees, which are not even sensible in real life.  

 

When the government requires us insure our cars, it doesn’t mean because we must have accidents. Even some accidents occur without the fault of the driver. E.g the driver parks in a normal area and another drunken driver rams into him and damages his car. But many cars don’t actually have serious issues like this.

 

When you’re rearing 45 chickens, considering yourself an expert of poultry, could you give a guarantee that none of the chickens would die before they’re fit for sale? Or could you predict in advance how many of them will die? Or could you predict how many of sick chickens would recover and survive? Why do we think we can predict the market that we cannot control?

 

Only scammers give guarantees; but legitimate business gives disclaimers. Scammers can give you 100% guarantees that you will get 40K within 45 minutes if you send N20K to them now. But you know that that kind of guarantee often fails.

 

NB: Like I said, the disclaimer is only about what brokers and banks put for you to agree to, when you open accounts with them – it doesn’t really mean we’re going to lose money deliberately. It’s just formality

 

 

To fund and withdraw with Neteller, please visit: www.instantforex.com.ng

 

 

 




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