What will a broker do if I earn stable money?
Many people who are potentially interested in trading and investing in financial markets are captivated by delusions that it is impossible to receive a stable income on Forex, that brokers simply do not let their traders make money and profit from trusting clients. This stereotype is constantly reinforced by the yelling of "deceived financial tycoons" who, when they came to the market, began to trade immediately on a real account, without any system, and safely lost all their money. Naturally, 99% of such "traders" blame the broker in everything, and Forex seems like a giant scam. However, in practice everything is not so simple.
Is it profitable for a broker to make his traders profitable?
In fact, everything depends on the broker. If you look at the market in a simplified way, then all brokers can be divided into two categories: ECN (STP) brokers, which deduce transactions of customers to interbank, and "kitchens" in which trade is conducted inside the company, and the trader at the best deals with other customers , and at worst - it trades against the DC itself. With ECN-brokers everything is clear - it is beneficial for them to make as many trades as possible to earn on commissions, and a trader who pours a deposit will not be able to conclude deals. Therefore, it is advantageous for the client to trade at least not at a loss. With "kitchens", in fact, everything is also not so bad: there are many such brokers who work in the market for 10-20 years, and were not seen in the apparent deception and sinking of customers. When a novice trader constantly makes mistakes, he does not need to merge, he will lose money himself, making unprofitable deals. And on Forex most, as a rule, are mistaken. The ratio of "kitchens" to traders who trade in a plus is somewhat more complicated. Large companies may well close their eyes to the stable but small earnings of a client and allow him to withdraw his money - after all, reputation is more important. Moreover - this can make a good PR and attract hundreds of newcomers, who eventually lose much more money. But if the company understands that one of its clients is not only stably trading in plus, but also constantly increasing volumes, taking more and more out of the brokerage pocket - measures are beginning to be applied to it. And in most cases, the broker deprives the client of all of its funds and blocks access to the trough, not formally breaking the law. To the question of how the broker does it, we will return a bit later, but for now it is worth paying attention to the most popular ways of obtaining a stable earnings on Forex.
Where does stable earnings on Forex come from?
Traders who earn forex trading can be divided into two categories. The first is experienced stockbrokers who, of course, have a strategy (or, more precisely, a set of certain rules), but decisions are made based on their own experience, and sometimes even on intuition. Such specialists do not close every month to plus, and they can fail for a long time, but experience and professionalism allow them to get out of the hole again and again, compensate for all losses and again turn out on horseback. Such traders tend to trade in large volumes, so they immediately go to ECN-brokers, without risking to mess with the kitchens. As a result, the broker stably receives his commission, and the trader is confident that he will not be deprived of honestly earned profits. The second category of earning traders are algo traders, herders and all those who have a profitable trading system and are able to follow its rules clearly. In this case, the trader does not need to be burned by a stockbroker - it's enough to understand the fundamentals of the market and be able to control your emotions. The part on algotrade is earned by people who do not have exchange experience, but are versed in programming and calculating probabilities. Such specialists can write a robot based on the analysis of the market, which will bring a stable profit in certain conditions until the market evolves and the former initial data remains relevant.But even before the market changes, most automatic trading systems have one problem: they require instant execution of orders. ECN-broker can not provide such conditions - it allows a trader to conclude a deal only when he finds a counterparty for him. And in force majeure situations (for example, when trading on news, which accounts for most of such systems), there are serious delays in performance, as well as slippage, when the transaction opens at a price for a couple of dozen points above / below the target.
How brokers - "kitchens" legally take away the money of successful customers
It is necessary to understand that the kitchen broker, especially working in the market for several years, in advance calculates the probability of the emergence of traders who in one way or another will be able to enter a constant income and take measures. The easiest way to protect yourself from excessively successful customers is to insert a few small and seemingly innocuous items in the client agreement. This can be a time-limited transaction (which is critical for scalpers), a maximum profit limit in the transaction, or a maximum withdrawal amount. If the trader even accidentally fixes a larger profit than stipulated in the agreement, he can be formally recognized as an infringer and refuse further service by freezing accounts (that is, taking out the remaining money on the deposit). There are solutions even easier - to make an offer in the offer providing the right of the broker to refuse the client in the provision of further services at any time without explaining the reasons. It's ridiculous, but a trader accepting such conditions, fixes the right for the broker to simply take his deposit, without having made a single transaction. Of course, there is also a reputation factor, and in most cases it is even more serious than the legality of the broker's actions (most of them still have an offshore registration). A large company will not steal money from clients in an impudent way, because it threatens much more losses because newcomers will prefer competitors with a better reputation. That is why before choosing a broker you need not only carefully (by items) to read the client agreement with all the additions, but also to study the reviews about this company on the Internet. And often see the real picture is not just because of, on the one hand, a large number of custom-made paid reviews from the DC itself, and on the other - from the black PR of competitors and just offended losers who easily blacken and honest company, just not to recognize their own errors. Some nuances of cooperation with forex brokers In addition to kitchens and ECN-companies, there are brokers working on a hybrid basis. This means that they issue large transactions to the interbank, and the warrants made by a fractional lot are traded within the company. Brokers do this in order not to refuse to provide services to small customers, who can subsequently become serious investors. However, it is not advisable to withdraw transactions to the interbank of 0.01 lot, so the broker performs them independently. In practice, this is fraught with the following situations: the client's transactions are executed instantly and at the declared price, while he trades in a small lot. If a trader is system trading and his deposit grows - he begins to increase volumes. As soon as the volume of transactions reaches 1 lot, orders are withdrawn to the interbank market, there are delays in performance and slippage. The trader starts to think that the broker intentionally puts him in the wheel, and in fact he only takes him to the real interbank market. However, regardless of the motivation of the company, for a system trader such a scenario is unacceptable.
Therefore, before starting cooperation with the broker, it is necessary to clarify all the nuances of execution. If the trader decides to cooperate with such a company, you need to limit the volume of transactions. Now that Forex is gaining popularity every year, various organizations are entering the market, making direct or indirect fraud in relation to customers.It may be the persuasion to open an account for a large amount, take a loan to replenish the deposit, or simply refuse to refund. In order not to fall into such a trap, you need to exercise the utmost care and not cooperate with unverified companies. His choice of a broker should be done on the basis of his own research and conclusions. If a representative of an unknown company calls you and suggests opening an account, promising gold mountains, it is better to refrain from such cooperation - solid brokers do not attract customers with banal cold calls. Conclusion In order to avoid such problems in principle with your broker, it is recommended that you simply cooperate with trusted ECN-companies, with whom the client is not guaranteed a conflict of interest. If the entire success of a trader depends on the instant execution of orders to within an item, you will have to do research to find the most loyal "kitchen", and then constantly protect the profit from your broker with regular conclusions. And just in case, it's better to have a couple of spare options.


amdudus wrote:
Wed May 02, 2018 7:36 pm
Perhaps the template grinding will take longer than this week.
It must be a qualitatively different system. While she has this kind.
Hello Amdudus,
If you have completed the template in the next few weeks, please explain the rules so that we can act just as successfully as the inventor of these templates.
Thank you very much :roll:
Be patient and wait for your chance

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