Dear clients of our company and website visitors!
We have gathered frequently asked questions in this section and hope you will find the information you are interested in. Should you have any questions, ask us and we will answer them as quick and competent as possible.
Hello, Mr. Gerchik. CFDs, change in the price with a broker. If I buy a CFD on Apple’s stocks, this implies that I am concluding a contract for difference with a broker. How does a broker get insured and does the purchase of CFDs have an impact on the change in the price of real stocks?
The answer is no. Broker gets insured for sure. The first thing I would like to point out right off the bat is that we do not make CFDs. This is a product purchased by the company from a liquidity provider. I don’t really care how they overlap or what risks they are taking.
But does purchase of the CFDs affect real stocks? No, it does not. Because it comes from the real price that, in turn, comes from the stock exchange. This is similar to Forex. It comes from the Chicago Stock Exchange or from the middle of the area (00:00).
I have asked my manager to reduce my leverage on the contest account to 25 and enable the Risk Manager, but he refused to do so, having explained that these are the Contest Terms. Is it really so and what are they caused by?
I’m not sure that this is a question for the crowd. You can personally check out the rules. If the manager told you that they contain this specific provision, then this is how it is. The problem is, there are thousands of people like yourself, and each one reads and interprets it differently. This is why, the manager refers to the Contest Terms which are the same for everybody.
Margin requirements regarding Turkish lira and indices have been recently increased. What's causing this?
We get the figures from liquidity provider, so this is something beyond Gerchik & Co control. These changes are most likely explained by certain risks of the provider. However, we are doing our best to get the most favorable conditions.
I would like to deposit a big sum of money but the idea of it going to the other side of the world is terrifying. If something happens, there is nowhere to run. When it comes to a deposit in the bank, you have a contract, so if the bank crashes, with insurance coverage you can expect to get at least $1,400,000 back. With all due respect, in case of Gerchik & Co we just deposit the money somewhere and they are not protected in any way.
I fully understand your concerns. It’s a matter of trust. If you are trading, say, with a European broker, your money is protected, for example, for $20,000. If you deposit the money in Cyprus company, there will be $20,000 compensation fund coverage but $150,000 simply would go down the drain. Let’s recall what Cyprus banks did four or five years ago. They just returned $120,000 to all those who had more than $120,000, while the people lost tens of millions. Even the bank has a certain threshold, beyond which it won’t compensate you.
Gerchik & Co has a regulator. We are a participating member of the Financial Commission which continuously audits us. We are one of the few companies who received Verify My Trade Execution Certification. You can see it for yourself by checking out the Financial Commission’s official website. Our company pays annual fees and has completed certification regarding five thousand trades. This proves that we are indeed a transparent company and do bring the trades onto the market. On top of that, we undergo audits.
We do have certain ideas which I’m not going to reveal just yet. When we obtain a European license, we are going to try to work with certain insurance companies so that our customers feel more secure.
Everyone has the same counterparties. These include Deutsche Bank, HSBC, Namamoto, all top banks. There is one liquidity aggregator, a counterparty that is working with these companies. We work with a large number of banks through one liquidity provider.
What should we do if your website is down and the hotline's number doesn’t respond? How can we be sure that we will get our money?
Why would the hotline’s number not respond? I understand that you it’s a hypothetical question, but we haven’t started this business to have any «ifs» like that. Your money is on the bank accounts, and we cannot withdraw it just like that. Gerchik & Co is working with the banks and has a bank account opened for it.
What if one day the Federal Supervision Agency for Information Technologies and Communications blocks the website of Gerchik & Co? We are based in Russia, you are based in Belize, where will we find you? Can you guarantee that every trader will be paid what he earned and his deposit?
Everyone knows where to find us. E.g. if a website with .Ru domain gets blocked, it simply implies that there will be no access to it; however, this does not mean that you will not find us or that our page won’t be functioning. We have been operating for three years now and have no issues with deposit withdrawal. What’s more, we have traders like Aziz Khalikov who makes hundreds of thousands and makes withdrawals without a hitch.
According to you, which trait does a trader need to possess to trade in the market, and which one should attempt to get rid of?
To become a good trader, you need to be consistent. Now, what does a «consistent trader» mean? This is such a slippery concept. Consistent trader is someone who is able to follow the rules of the system. It is self-discipline, it is sufficiency, this is when your head tells your hands what to do, and your hands do just that. Trading is an extremely diligent work, that’s all there is to it.
Excellent trader is a person with two people living within. The first one does homework, writes the script, and the second one executes it. What do I mean by this? For instance, you wrote a great script, and the other half of you should simply execute it. So, basically, if you want to figure out who the perfect trader is, it is the person whom you can give your script to and who will take it and execute it, no questions asked. When you are teaching someone to drive a car, the first thing you say is, «Get in the car, close the door, buckle up, turn the ignition key on, release the parking brake, and press the clutch».
I am not sure if the sequence of steps I’ve mentioned is correct. Anyhow, this sequence remains when the driver-to-be gets behind the wheel and follows your instructions, doing it automatically. «Steer around the obstacle, turn left, now make a U-turn…». If these two people – the one who writes the scripts, and the other one who executes them flawlessly – can coexist within you organically, that’s what «abiding the system» essentially is. In that case, you have every chance to become a pro.
The United States Congress keeps threatening to adopt new sanctions on Russia, including the banking sector. My question is, to what extent can the sanctions - if they are to be theoretically imposed - impact the reliability of work and the safety of the funds of Gerchik & Co’s clients?
Gerchik & Co does not keep the money in Russian banks. We remain a regulated company and keep the money in Europe. Our money is neither in the United States nor in Russia. So, basically, there is nothing to worry about. In addition, keep in mind that all of the sanctions are against certain companies involved in the sale of weapon, or people who are close to the president.
Now, guys, who are we? Gerchik & Co is just one of the many brokers offering its services. As it has been mentioned previously, our customers’ money is kept on European accounts, so neither I nor our company have anything to worry about. The fact that we speak Russian doesn’t mean we are a Russian company. We have a lot of customers in the CIS countries. There is no need to worry about it, I cannot stress that enough.
If I entered the trade at a breakout of the daily level, I was knocked out according to a stop loss order on the same five-minute bar I had entered. How can I re-enter? Should I wait for the five-minute bar to close or place an order again, once I was knocked out?
You can’t re-enter right away, especially if you are trading on a five-minute bar, since if you were knocked out, the instrument breaks out this level right away. Most probably, you will have to wait for a consolidation or for the instrument to draw a clear picture. This is the key factor. That being said, I personally never re-enter on the five-minute bar.
Can a broker who trades with me open and close trades for me if I have attached him to my account? What does a broker get when I lose my money? How can I get my money back?
I don’t know which broker you are trading with. We do not open or close the trades for our customers and they can confirm this. I am not sure what you are talking about, to be honest. If you have connected TIMA or PAMM account, or something else, it’s a different thing.
Hello! I cannot decide which broker to pick, since I don’t have much experience in trading. Can I trust Gerchik & Co? How many customers are currently using the services offered by your company?
We have a lot of customers and everything is alright. But the choice is yours. If you wish to trade at Gerchik & Co, you are more than welcome to do so.
I started trading Forex. During the first week, I traded according to “Plus” Algorithm with a stop loss order of 7.5-10 pips. Earlier this week, I have run into a series of unprofitable trades. My question is: should I increase the stop loss order by lot decrease when entering Forex? Say, 15-20 cents?
7.5-10 pips are not enough. You can enter a position with a stop loss order of 10 pips, provided that there is a very strong limit level or a very small “tail” on a false breakout which doesn’t happen too often. Very short stop loss orders can be a disaster. Stop loss order should be where it should be and nowhere else. What you have to do first is move from the stop loss order. Trading from a certain figure i.e.
7.5-10 pips in your case is wrong. Stop loss order should be either behind the level or behind the “tail” of the false breakout. If it worked initially, it needs to be examined in more detail. But you should keep in mind that if the volatility in the market increases, this stop loss order will be removed. Only provided that there is a very strong level, the limit level, you can get by with short stop loss orders. Or, near a strong daily time frame, you can get by with a short stop loss order if the “tail” of the false breakout was small.
I am going to undergo training in your company, and I’m particularly interested in the levels. I tried to draw a few levels in the terminal, but it makes my eyes bleed. How many levels do you draw? Current level, or current one and a few more and that’s it?
Look, here’s a thing. If these are the training levels, I would try to draw as many as possible. However, if these are trading levels, I would trade only those levels that are nearby. For instance, if we do market reviews on Mondays, I will be showing lots of levels there. If this is my own trading day, there will only be those levels that are nearby and I will ignore the old ones. There is no need to draw many levels, if the price is very far from them.
I need your help in order to figure something out and make a decision. I took an online course in 60 days, did not attend a workshop in Moscow. I am trading Russian futures intraday, five-minute timeframe. Because of my job, I don’t have the time to sit at the computer. On top of that, I can’t quit work now in order to be able to fully focus on trading. I check the charts in the evening; however, there aren't many good trades. So, my question is this: am I wasting my time, since I still do want to turn trading into my main occupation in the future? Perhaps, it would be more reasonable to switch to a higher time frame i.e. to trade a daily, 1-hour or 30-minute time frames? Initially, I have picked 5-minute one in order to get the hang of it, and I get more trades per day. I realize that I may be wrong, this is why I am asking for your professional advice. Thank you for all the things you do on a paid basis and for free.
Unfortunately, if you can only monitor an instrument in the evening and don’t have the time, we recommend that you ignore the 5-minute timeframe entirely, since it won’t give you anything. Instead, try to trade on 1-hour and possible daily time frames. For instance, if you have picked the right levels, try placing the related orders on the daily charts or hourly charts in the morning and hold the position open overnight. In your particular case, unfortunately, 5-minute timeframes and intraday trading won’t give any profitable results, so it’s best to trade the daily chart.
People often ask whether they should quit their regular job and engage in trading full time. Here’s the thing: you should trade for at least a year while getting solid results – one and a half, or even two salaries that you earn at work. If you can’t achieve this, it would be hard to quit.
Or if you have your heart set on trading and have a solid financial basis for 3-4 years. If we are talking only about one year, under no circumstances should you do that. When there is a time limit involved, you set certain deadlines for yourself, like, say, you should learn how to trade in a year and a half. Once you get closer to that deadline, you will face major problems, since this time limit will start stressing you out. Time is a bad factor, it almost always works against you, in fact, it works against everyone. So, if I were you, I wouldn’t take any risks until I am to achieve good stable results. In your case, it would make sense to start trading at least 1-hour or daily charts. Then if everything works out well, you can start contemplating about your next step.
Yes, they will.
Unfortunately, we cannot hold different competitions all year long, since we are focusing on other activities as well. I believe that the Contest on Demo Accounts is currently the best thing that the industry has to offer. We allocate a big sum of money, namely 55 thousand dollars and distribute it among many people.
There are times when a person takes 1st or 2nd place by accident, and we try to avoid it. Our rightness is proven. Igor Rutskiy has finished 54th, and today he has 40 thousand dollars of investment, making money both for himself and his clients.
Can CFD instruments (e.g. Walt Disney, Ford Motor Company etc.) in the MT4 platform be qualified as stocks?
Yes, they can. Essentially, these are the very same stocks. They are traded at Gerchik & Co similarly to the real stocks on the stock exchange.
What does the note stating «The company shall reserve the right to introduce amendments and modifications» in the training terms and conditions mean?
This is a standard phrase used in almost every agreement in any scope of activity. The presence of this phrase in agreement does not necessarily imply that the company will introduce the said amendments and modifications.
Alexander Gerchik has been teaching for 12 years now. During this period, there have been no complaints about the training. All of students were happy with it, having acquired necessary information and knowledge for successful trading.
Are there any cryptocurrency reviews by Alexander Gerchik planned similarly to his stock and futures reviews?
Alexander Gerchik hosts webinars – weekly reviews of the stock market and futures – with respect to the trading instruments available at Gerchik & Co. Aside from that, we have added Bitcoin and RUB/USD currency pair to the reviews.
However, a detailed review of different cryptocurrencies is not planned any time soon, since the webinars are not Alexander Gerchik’s area of focus. He is managing the company and is engaged in trading. Due to this, he does not have enough free time to be able to host new webinars on a daily basis in addition to the existing ones.
What factors does interest depend on? What should the trader base the size of his or her remuneration on?
Everything depends solely on you. The amount of remuneration can vary from 20% to 50%, if you are a super cool trader demonstrating starling profitability. We have got TIMA account managers at Gerchik & Co who charge 50% of the profit, and everyone – both the customers and the traders – remains happy with it, since they are trading quite successfully, generating large profits for their investors.
So, you need to keep the following thing in mind: the more money you earn for the client, the more you can charge in return. There are traders who charge as much as 60%, but these are experts demonstrating absolutely phenomenal trading results.
Why does Gerchik & Co have no user-friendly and functional MT5 trading terminal? Are you planning to introduce and launch any other platforms?
You will be disappointed to learn that there is no major demand for MT5. We have done a specific survey among our traders and found out that less than 10% lean toward MT5. Unfortunately, not everyone finds it as handy and functional…
You have asked whether we planned to introduce this platform. Yes, we do. However, there is an issue. It is economically unfeasible to pay a lot of money for the platform which only 5 people are going to use. We often interact with representatives of other companies and people from our industry, asking them how certain new interesting platforms implemented by them perform and whether they are popular among traders. The reply we often get goes like this, «Hardly 2% of our traders use it». This means that out of 100 people, only 2 are working with it, while the platform itself needs to be maintained, servers have to be downloaded, all of which leads to major expenses.
By contrast, we attempt to cut down on things that we do not need to be able to provide our clients with the best possible services and solutions. When we see a huge demand for other platforms, we will be happy to purchase and introduce them. So, the answer to your question is yes, we do plan to get MT5. However, it is not yet the right time to do this.
The Demo Account Contest. Season 3 commenced on June 1, 2018, offering the you a chance to become a professional manager. For the record, you can check out a very interesting interview with Igor Brodskiy, one of our managers who became a winner in the previous contest. He has already received an investment, is currently successfully trading and demonstrating solid profitability.
So, dear friends, be assured that this contest is real, the money is real and the chances are absolutely real as well. Here are a few tips for the Contest participants. In order to boost your odds of winning, make sure to undergo training with Mentor Bot, install Risk Manager service and give this Contest your best shot, since it unlocks the opportunity for you to make it big.
Three years have passed since you mentioned about obtaining a European license. Hasthere been any progresson that front?
Has Alexander Gerchik ever received any offers to take the office of a manager in major stock companies?
Why is the information illustrated by Alexander Gerchik considered to be the best in the Forex market?
Will I have a personal account in the bank or I send money to the company's account? Why is it done this way, explain in detail.
B book implies that you trade within the broker company. You trades are not placed on the interbank market, so the broker company is a direct contractor of each client’s trade. Such broker company profits off of client’s losses.
Will the company work on implementing of new technological products (web-platforms, mobile apps, advisors, platforms, social trading)?
Do the slippages happen when news is released? If yes, how large are they? What can be done in this situation?
Another factor: we are an STP broker and respectively we execute orders by quotes the liquidity providers offer. It’s hard to say how large slippage can be as it depends on the market situation.
How many liquidity providers does the company have? How did you manage to reach such a low spread, the best in the industry?
Minimum spread is achieved as we have a large number of liquidity providers, in other words liquidity is aggregated (combined) from all liquidity providers. And when a trader clicks on “buy” or “sell”, an order is executed at the price that was the best among all liquidity providers. This is a reason of such minimum spread (from zero) and a high speed of order execution.
STP is a technology that implies a direct processing. In other words a whole chain – from order placing to its execution – is performed automatically, without manual intervention, this is a technology of automatic output of your orders to liquidity providers.
In fact, STP-model eliminates the possibility of broker’s offsetting positions for the clients. All trades should be done with contractor. Although ECN-model has an external liquidity, a broker itself can be a contractor of its client if takes these risks.
Most significantly, liquidity providers always compete with each other, so a client’s orders are executed at the best market prices.
I want to trade the US stock market and futures by means of your company. Will be such an opportunity?
More details about verification, its conditions and necessity you can learn here.
Unique services from Gerchik & Co
We offer more than the traditional Forex. We offer innovations, comfort and stability.
Increases the number of profitable trades
Minimizing losses maximazing profits.
For money-making investments and profitable trading.
A vital book for traders and investors.
Develops a Trading Strategy from trader’s previous work records.
Your trading system's strengths and weaknesses.