Hello, I am a total newbie at forex and have just recently started reading up on it, and I came across this post by a stocks trader in another forum.
When you trade with an FX broker your trading directly against that company (the broker takes the other side of your trades) as he acts as the market maker.
He also “manufacturers” the charts your trading off. That’s right he gets to make up what he wants as far as the actual quote on the chart goes !!!
What this means is your trading against someone that gets to see all your entries, your bank roll and your stops and too boot he has a vested interested in you losing money because HE makes more when you do.
In summary: Only longer term trades with very wide stops will beat your broker consistently and that’s assuming you have everything else right.
If you want to trade the currency markets, trade the futures not the forex and you should do much better.
Is there any truth to this? What is the general opinion on this matter?
most probably true - it isnt easy - they are not going to give you money that for sure. that said, i use charts from one broker and place my trades through another broker - the broker moving the price wont kill you - having the right skills to win will - it takes time and money - it is possible for a few.
Half true, half wrong, half depends - plenty of broker threads on here the explain the reality. FX has its fair share of scammers and no mistake, but so does stocks. Stocks you have different but equally concerning issues, such as available liquidity, which isn’t as much of an issue in FX unless you’re trading size.
That’s why you should really know and understand the structure of the market you’re trading in. Who makes money from who and why and how. Do that before you get too wound up in indicators and any of the trash systems here and elsewhere. It’ll do you good…
