Fake market is the wrong way to look at it. It’s a market where buyers and sellers can receive the benefits of owning or disposing of assets. The fact that some market assets are simply binding agreements or contracts or debts does not make those markets fake.
Think about the buying and selling of company shares. You could argue this is a real market because you own a fraction of the company, and the company has assets like buildings and machinery and land. But in reality when you buy shares through a broker, none of the money you hand over for those shares goes to the company named on the shares. Is this a fake market too? Or is the question just a distraction?
As @tommor said above, I’m not sure that “fake market” is quite right, but apart from the “choice of words” what you have said there is absolutely true.
In the Spot Forex and Futures market, you are actually trading in the market and you can be held accountable for delivery or receiving of the physical commodity or cash equivalent at expiry if trading Futures or within two days if trading Spot Forex.
Most CFD forex brokers take Spot Forex or Futures market data and add their spread to it and present that chart to their forex traders. So you aren’t trading in the actual market and you aren’t seeing the actual market data. Instead you’re looking at a broker specific manipulation of Spot Forex or Futures market data.
It true. Retail Forex is a type of Gambling. No Currency exchange. No real trade execution to Real market.
Like i mentioned above, We are not Trading, We are just betting against Forex Broker (Market Makers/B Book) or Liquidity Providers (STP/ECN/A Book). Real Forex Market is only for Elite peoples not for Retail Traders.
‘’ We are not Trading, We are just betting against Forex Broker ‘’ … and that’s regulated and approved by law … and they call themselves Regulated. It’s just silly, but I’m glad I’ve started that discussiaon.
It 100% Legal and Approved by Almost every country government. In financial Market betting does not consider as pure gambling as it involve Skill and Analysis.
Trade only with forex broker regulated from UK, Australia and USA. Ignore all other Forex brokers whether they are regulated from somewhere else or unregulated.
I felt similar when i get to know about it. But the fact is Financial instruments does not consider Gambling.
I don’t mind gambling or betting, it’s fun and I like it … question is - is it even possible to win while playing against player who is your opponent AND the referee at the same time (the Regulated retail brokers I’m refering to). Thanks.
That’s exactly the right question and the right wording. My own answer’s in my post above, and was based on FCA information, which I believe: it’s possible but not easy.
(About 20% of customers are profitable over any 3-month period, but very few are profitable over a whole year. Anyone profitable long-term certainly wouldn’t trade spot/CFD anyway, for many reasons.)
I’ve heard stories where some brokers manually put a TP on your trades or when you place a trade, MT5 just stops connecting to your account until your account ha been BLOWN
I know. it designed to fool the traders. ECN/STP your betting against Liquidity providers (Financial Institute, AMC, Banks or Multi-market maker) instead of Forex Brokers. As Forex brokers serve as Middle man. So, it always better to bet against Liquidity Providers instead of directly betting against Forex Brokers (Market Makers).
I never said. They won’t scam. I said it better to bet with Liquidity Provider Instead of Forex Broker. Directly betting with Forex broker involve more chances of getting scammed.
And if you check my comments. my final conclusion to trade with broker with combination of (STP/ECN) + (UK/USA/Australia regulated). So, the chances of getting scammed will be much and much lower.
I would like to thank you all for your participation, you guys are great!
As for myself - I’ve recently switched from one of the biggest and over-regulated UK retail brokers (not going to mention names here), where I was constantly losing … to one big Prop firm, and all of the sudden I’m 90% on the winning side ! … I’m not suggesting anything here, just wanted to share it with you as a side note.
