Re: Do Forex brokers really trade against you/cheat on their clients?

#11
Yodelx90 wrote:
Mon Mar 09, 2020 1:02 am
There's a party that believes that brokers are profiting just off the spread. I don't cater to that belief. I use a very large, worldwide and very old broker. Don't believe in the pairing of parties. They are the counter party. They are a very well capitalized and in a very regulated jurisdiction(s).

The CFTC doesn't pay attention to the small accts. Being a market maker is enough explanation for a stop run...because there are orders there regardless. You can't tell the them they can't fill orders below even if they take the market north immediately afterwards. They are just doing their job...

Viewing the forex (commodities actually) industry with the same secular and generalized securities vantage is a mistake.

Your broker is an adversary not your friend. They have no qualms of losing accounts and they want a fresh generation of paper and they get it.
The European regulator ESMA recently spent over 2 years pulling apart the big broker's business models before introducing a massive raft of new regulations specifically aimed at the protection of retail clients, they did not find systematic price manipulation and the brokers would have lost their licence's if they had. They found profits were from spreads and parallel hedging. There is a thread on '2020 the years worst brokers', I've been doing this for 10 years and I only ever heard of 2 of the brokers on that list of 16. Where on earth do people find these scammers in the first place and why on earth would anyone give them money?


Re: Do Forex brokers really trade against you/cheat on their clients?

#12
hi
first in all CFD brokers there is nothing his name A or B
cuz all the CFD's brokers they dont even enter to the market all the trade its between you and the broker ( or lets call it they create a market of they own )
you bet from one side and the broker from other side if you lose the broker take money if you win the broker lose money
that how it work in CFD planet

if you know french go to AMF-FRANCE..ORG and read about CFD's and ho win more and the much of money who win take and who lose how much they lose etc..
i know what i saying its gone to make alot of people here upsets but that the reality
as i tell the people and my students if you want the start trading the last thing to do its start trading with a CFD broker cuz all the CFD brokers they know how to protect them self by law even when they scammed you
so if you are beginner

1 choice go trade us stocks not in cfd or option but equity and you gone to feel big different even if you have the most simple trading strategy
2 invest in crypto not trade and choice not margin account cash one
3 option
4 futures
5 forex

that reality and i sorry
cheer all

Re: Do Forex brokers really trade against you/cheat on their clients?

#14
Good brokers, bad brokers, a good broker should have a sizable A and B book and match shorts and longs in house before hedging any outstanding positions. A bad broker doesn't really want an A book at all and would rather just take the other side of your bet themselves and come out the winner as the majority of retail traders lose.

The former, as a business model, is relatively safe, they will weather most types of market upheaval. The latter is more at risk from unexpected events causing major turns in the market. Brokers are naturally shy about disclosing their business model so it was surprising recently when Plus 500 released a news statement explaining to share holders that the recent major profits drop was due to 'their clients getting it right' in their call on the recent Covid and Oil market turmoil.

So in essence this broker is going to go bust unless their clients keep losing :wtf:
aa plus500.png

Re: Do Forex brokers really trade against you/cheat on their clients?

#15
Hello again. I just wanted to revisit my post as I this was on the back of my mind for months and I just haven't had the time. If you went through my previous posts and used your mental eye to see the picture I was depicting then that's great. I thank you for reading and maybe you enlightened yourself a bit. I don't want you to start developing a victimized stance in trading. That has no place in your mental state as a trader if you want to become successful. You do need to keep yourself just a little bit cynical as trader.

I've been meaning to post this with an actual visual to facilitate the goings on with a broker and me (and all traders) whether you like to admit it or not. I'm gonna keep it simple but it takes some narrative so you better understand the image attached.

The account is again a small one that I was about to abandon. The date to start is May 5th 2020. My last trade I get caught buying a EUR/USD - top/retrace after the US ISM index numbers come out pretty decent beating expectations by 4.3pts. I let the small position's loss take course and decide it's dead money. I know the nano account is going to close out soon unless there's an act of God. Little do I know it was about to happen but not the way I was hoping. I totally disregard the emails letting me know I'm about to close out on that account. In-fact, I don't even log in and they know it. I have several accounts including ancillary ones as some of you do.

To the picture:
orderhunt3closeout.png
1st red circle around 1.0881 - small blue arrow up is the buy position I am caught in (btw that's a practice for market maker shorts to trap longs on spikes being bought, the real trap was at 1.0900 level. What a retrace in this type of instance is longs pushing up price to get out and Market makers filling in partial fills - did you know this? A lot going on in those spikes) then the price drops back down for the remainder of US session. The price does not rise the next entire day and continues a grind down all the way down for two days to the 9am central time US session, May 7th 2020. The mean time I ignored the emails again of impending close out. Little do I know, that at that time at my brokers low print @ 1.07666, low bid @ 1.07665, my CLOSEOUT @ 1.07668 was at the bottom.

I mean THE bottom to never retrace up to today. My close out of that position which I didn't even bother to log into or check was THE BOTTOM of the bull run from that point in May that you are witnessing in the EUR/USD to this past Friday (today is Saturday) July 26th 2020. Oanda, my broker's price varies about 1.5 pips from other brokers. Their the only one of two legitimate governed brokers in the US. Their price is proprietary. Meaning the price is not interbank feed and is in-house. Their price is based off their algos - their pool. They are the counter party. I won't go into detail as to their hedging or all that. It's all the same opaque explanation that any broker uses.

Is this just coincidence? It's such a small position why would they even care? I don't have their answers, but I will say that it isn't a coincidence as I've seen too many of these coincidences to believe that. Oanda is one of the oldest brokers and any broker in the business that old you can be sure does not miss a beat and will tie all loose ends. Imagine if that position and account I abandoned was left standing today? They can see that I wasn't logging in and stopped monitoring the position. Is there more going on? After all that I've seen, I think so. I can see it the price as I'm sure some of you intelligent enough to notice that there is more than supply and demand going on. That's why I say always be a bit cynical and always trade when volume is high and set ups are visible to all. Brokers especially the big ones are not surviving off the spread alone and do not take to losing to you as kindly as you think. You are a client until you become a liability and the more clients the better.

I don't piss accounts like this anymore and wanted to show all of you what's really going on.


Re: Do Forex brokers really trade against you/cheat on their clients?

#17
Brokers may be against you if you use leverage, because then they lend you money, and if you win big, they have to let you keep some part of the leveraged profits.
so in any leveraged account, the brokers are against you in the sense that they hope you will lose so they don't have to pay you the extra money


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