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Originally Posted by Tess
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!
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Wrong, this is a win win situation, they use you to make money, and you use then to make money off the market. They dont lose anything if you are profitable. They always make the money from the spreads by say, getting them at 1 pip and selling it to me/anyone else for 3. This is the basis for their system. The more money you have the more lots you can buy therefore increasing their gain even though the spread is the same.
Quote:
Originally Posted by Tess
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.
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Refunding the account only matters because you dont have the money to place trades there they can make money off of you. Its not like if you go negative on your account they get your money, you money is lost because it devaluated.
Quote:
Originally Posted by Tess
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.
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If you somehow make a profit, it does not impact then in any way! Only now you the resources to continue using then at your own and their mutal gain. It not like the money comes from the companies pocket.