Do Forex brokers really trade against you/cheat on their clients?
Yes they do. But I wouldn’t use the term “Cheat” as you aren’t losing anything and still have the opportunity to profit.
Brokers will categorize you depending on your winning, losing and profitability.
They’ll place you in what’s called “A” and “B” books.
As a new broker client, Forex brokers will keep your trades “in house”. Basically your trades aren’t sent to the real market. The broker will execute your trades and bet against you, taking the other side of your trade.
Why do Forex brokers put you in the “B” book?
Firstly, because the “B” book is a profitable business model. Statistics prove that 90% of traders lose all of their deposits within 6 months. So the stats favor the broker.
IG Markets holds the biggest “B” Book in the world.
Why do Forex brokers put you in the “A” book?
Brokers will put you into the “A” book if you’re profitable. Brokers send profitable traders out to their liquidity providers because no one wants to bet against profitable traders.
