Yes, this is so. Which is why it is strange that it is so often claimed that the banks are running retail traders’ stops. For one thing, these institutions are not interested in the peanut sums that most retail traders are risking - and even if they did run the price up and down, they would gain nothing since it would be money in the broker’s accounts and not the banks’.
There are certainly times when prices are moved to a certain extent by the professional participants but it is hardly credible to imagine that they all “club together” and plan their moves for the day! They are all trading the same market as everyone else - they just have different agendas and perspectives, as well as proper training, a minimum standard of abilities/capabilities and a greater access to revelant resources.
I do not believe that any broker targets individual clients, but they do, naturally, monitor their overall exposure, order flow and location of market orders. Whereas a broker may be guilty of various devious practices such as widening spreads and trawling in stop losses, I am sure that most of the time the broker does not have to do anything to profit from the clients since the majority of newbie traders are more than capable of losing their money through their own mistakes without any help from the broker!!
But many of the newbie traders make it too easy to be taken advantage of simply through the way they trade. One can see on many, if not all, of the trading journals that appear on BP, that new traders, and those with small balances, tend to trade on short timeframes with TP and SL typically in the range of 10-50 pips. In volatile markets such as forex, this is actually a game more suited to highly experienced traders rather than beginners.
It seems hard to believe for Newbies but trading longer term with, say, daily charts is far more reliable and almost impossible for brokers to manipulate due to the greater distances to TPs and SLs. The trouble with this, thought,for the average Newbie is that the greater stoploss levels means smaller positions and longer waits for a few dollars profit - it seems far more attractive to go for the quick 10 pips with a bigger position. But in reality this rarely works consistently!
The sad fact is that there is no minimum bar level for entry into the retail forex markets and inevitably there will be many that simply should not be there and are fleeced very quickly - either deliberately or by sheer own ignorance.