I am a newbie, I am at the Colledge trading news, so I am not trading yet (not even in demo)… Question I have been looking around for a FX broker… and well its crazy every broker seams to have negitave reviews calling them scams or whatever. You see allot of people say things were fine with broker X during my loosing/break even days but as soon as I started making money the broker would do X,Y or Z…
I thought the broker made money no matter how your trade goes, I thought they make money of the SPREAD? So why all the reviews saying “the broker does not like me making money”? Can someone explain to me if the broker as an advantage if you loose money?
Sorry if this is a newbie question but I don’t get the reviews, I don’t understand how it effects the broker if you “win” or “loose”?
I tell you this: “TRUST no one and experience it yourself.”
Most newbies will lose money and that is a statistical fact.
The real problem is that most newbies cannot accept the loses.
From denial, most newbies will place blames on others.
And that is why Brokers got so many BAD REVIEWS.
HERE IS A TIP: Look for Brokers that are well regulated and have been here
for a very long time.
Why? Because if the Brokers were scam artists and cheaters, they would not
waste time on being regulated AND they would be out of business in a few years.
I understand that allot of the reviews can be from angry people. And I (from the lessons on this site), know to make sure they are regulated.
But the question I really have is if a broker makes more money if you “lose”… or is the only money they make from the SPREAD, meaning from a brokers perspective they don’t care if you win or lose, but would probably prefer to see you win (as winners will make more trades than losers, giving the broker more SPREADS)?
Man did I say “i was concerned about brokers making money from me”???
NO, I am trying to learn all about the forex market and that includes the BROKERS I will be working with.
it does not bother me if they bet against me. But does make me wonder, if I beat the statistics and end up being a successful trader, will the broker tell me to take my business else were? Do successful traders use brokers without issues?
See your whole post was great until the last line, any reason you want to take a stab a some one? If you read the post, you would SEE i am not whining, AS I HAVE NEVER TRADED…
Let’s assume that you’ve traded for while and have constantly lost money over a period of time. Now: you ‘top up’ your account again and start trading again. STATISCALLY speaking: there is, based on your trading ‘acumen’ and your account history, a better than average chance that your’re not going to make money this time around either. So: the broker will take the risk of NOT passing your trade along but rather keep it ‘in house’ as it were. So: if YOU lose on a trade then they will not only be making the spread but they will be alos be ‘making’ your entire loss on the trade. Now this would be fine if it STOPPED just there but in some cases it does not i.e. the broker may ‘pull moves’ on you (such as holding your exit order for a while until either the profit on the trade has been reduced OR the profitable trade has indeed now turned into a losing trade). Some other ‘favourites’: purposely causing disconnects from the trading platform at various times or ‘spikes’ in the data (designed to catch your stops and, of course, there is ALMOST ALWAYS a ‘valid’ excuse for these ‘spikes’). So the bottom line: check the brokers reputations (as you’ve noted: you have to ‘sift through’ the comments made VERY carefully) and check that the broker is WELL regulated and WITH WHOM.
One thing I’d like to add here though: sometimes in live trading there legitimate reasons for not being able to close a trade at a certain price. In a fast moving market: by the time you’ve decided to close your position at a certain price and clicked on the necessary button in your software and thus sent the order to the broker the price may have already changed and, in this case, you’ll get a ‘requote’ which you can either accept or reject. This can and does happen and is ‘normal’. The difference between this ‘normal’ behaviour and what happens when there are ‘moves’ being pulled is that under ‘normal’ circumstances the requote may only be a few pips and you will be able to close your position while retaining most of your profits whereas if ‘moves’ are being pulled you will be requoted several times and will not, in all probability, be able to close that position until its become a loser. The good news: it does not take you long to see what’s going on I assure you!!! LOL!!! Also: in some cases a broker will have automatic execution (‘no dealing desk’) on certain (popular and liquid) forex pairs e.g EUR/USD (a ‘major’ pair) but on an ‘exotic’ pair such as USD/ZAR order processing is done via their dealing desk. In other words: your EUR/USD orders will processed instantaneously but you may wait a while for your USD/ZAR orders to be processed manually. It’s little ‘nuances’ like this that make it all the more difficult to ‘sift’ through ‘good’ and ‘bad’ broker reviews i.e. some comments are very valid and some are not valid. I guess it’s the ‘big picture’ that you have to look at i.e. if the same type of complaint keeps cropping up then its obvious that whatever the issue may be it’s ‘by design’ as opposed to the odd angry trader thats just lost a bit of money on a trade.
Anyway: I hope none of this scares you off. It IS possible to be successful in this business (although there used to be time when I myself have wondered but EVENTUALLY you do ‘get there’). If you need any help: MOST on this site are here for you!!!
