they make their profits from the spreads. That means everytime I make an order they make money, even if I make a profit or not. So the more trades the better for them.
Yes, they do indeed profit from the spreads. They also delay & bias quotes at certain times during the various trading shifts , just enough to increase the % cut even more in their favor. Remember, they’re a business. You win – they lose!
Why would they discourage placing orders during the news or scalping, it makes no differece to them???
They won’t discourage you if you’re consistently net negative. If it suits their end, you can punt thru news data & scalp to your hearts content. So long as you’re regularly re-funding your account due to losses, they’re happy.
But once they cotton on that you’re operating a successful strategy, which is extracting said profit at their expense & particularly booking profits on reasonable size, they’ll be onto you quicker than a flash.
They can’t offset your position onto their risk book fast enough, because you’re generally only active during short windows of opportunity.
They only deal with limited wholesale suppliers (sometimes as few as 2 Banks), therefore it’s impossible to lay you. They have to absorb your positions & if you’re taking them regularly for x% week in, week out, you & others like you, are impacting their bottom line.
Do you have any personal experiance with ACM, if so I would like to know more if possible.
No, I don’t. But I’ve been around this business long enough to know what I’m talking about.
My brother-in-law worked in various roles (including front desk) for a well known retail shop in the States from 2001-04, we also have a British trader working with us who transacted for a high profile Spread-bet outfit back in early 2000-03, so we know exactly what they get up to on a regular basis.
Also where have you hear what you wrote on your post?
Sorry, I don’t understand what you mean by that comment?!
|