Why your Forex brokers don’t like your trading style?
So your trading style conflicts with the way the Broker would like you to trade. You trade too often, you do not hold the trade long enough. If a Broker who has Dealing Desk and is trading against you, one whiff that you know what your doing and are profitable won’t sit well with the less reputable. They want the easy meat in this Forex Safari, better all round if you move on. Scalpers are indisputably the least favorite clients for Forex brokers, where brokers hedges against their clients. Forex brokers have already seen the dangers of a successful scalping, where traders were able to create thousands of dollars out of $50-$100 in starting capital in just several weeks. Mind-blowing for us, mere traders, and a nightmare for a dealing desk broker! I should add that only real ECN brokers are immune from scalping dangers, because ECN brokers don’t trade against their clients, they send your deals to the real interbank marketplace. The rest of the brokers, trust me, take every precaution to ensure they’re protected from scalping disasters: they evaluate clients’ trades, check how long clients hold positions open, how frequently they trade, how successful they are with the short term trades, whether they use any expert advisors and so on. Forex brokers, who will not tolerate scalpers, mention scalping rules and restrictions in their Terms & Conditions, which traders rarely read, by the way, when opening trading accounts. Under such scalping restrictions, brokers can charge penalties and commissions to those traders who fall under the scalping category.
You need to understand that forex brokers are above all marketing machines. Forex brokers continuously require a flow of new clients, since many retail forex traders don’t survive longer than a few months. After losing, more than 90% simply quit and give up forex trading.
For enticing new clients, vast sums of money are spent on advertising by forex brokers. You can check this fact by going on Google and typing any forex related keyword. Almost all the ads will be by forex brokers. Each click costs them around $1.
Most popular way used by brokers to make you trade more and more and burn your money is to announce monthly Forex Trading Contests. Cash prizes of $2000, $1000 or $500 are announced.
In order to win, many small traders get wiped out; losing their money. This is just a trick fx brokers use to make you trade more. The more you trade, the more money your broker makes. This trick is similar to a lottery.
How Forex Brokers Take Money From Newbies
Your forex broker assumes that you will lose money over the long run when you trade. Given that 95% of forex traders lose money, it is a very safe assumption. Every broker has to decide whether a new account will belong to the group (95%) of traders that loses money, or the group (5%) that makes money.
Every new account is assumed to belong to “group A” – those traders that will lose money. Since 95% of the traders belong in this group, your broker is only too happy to assume that you belong in this group.
After some time, if you have consistently made profits, your broker will re-assign you to “group B” – these are the lucky 5% of traders who consistently make money. After you have joined this group your broker will lump your trades with all of the rest of group B and hedge against your trades. So, for example, if all traders in group B have bought the EUR/USD your broker will place a trade in the interbank forex market to offset any profits group B make on this trade.
Basically, your broker puts up with group B traders but is really interested in gaining group A accounts. This is because if a trader in group A loses $10,000 – that is, he completely blows up his $10,000 account, then the broker gets all of that money. The broker makes money on the losing accounts. So most forex brokers are hoping you will lose. This is also why brokers are constantly advertising for new customers. The brokers need “fresh blood” to keep making money, many of the traders in group A will give up on trading or move to another broker. So, the next time you see a forex broker advertisement you will know who they are really after.
Classic ways Forex brokers try to scam you
Forex Bucket Shops
Bucket shops are fraudulent brokerage firms that “book” a client’s orders but never really execute them on an exchange. Forex bucket shops rely on the statistics that roughly 90% of all new traders fail and lose all of their money.
Knowing this, your broker will entice you to use a high level of leverage by saying that it will increase your profits. You are new, you don’t know how to use leverage. You end up losing. Because the forex bucket shop does not actually hold positions on the forex market, it collects all the money their clients (traders) lose.
Boycott
Sometimes, brokers even boycott the traders and try to boycott them completely. This usually happens when a trader is receiving a significant profit. The moment your profit history becomes consistent, brokers do whatever they can do to stop you from gaining more profits through them. This may sound unprofessional and even strange but it is true. This is because in the end, a broker does not care whether his/her client benefits as long as they are profiting themselves.
Clever Software Technology
When you search for a broker, you will find countless web results for online brokers trying to help you out through their “unique” software technologies. Needless to say, the very sound of an online broker is fishy. These online brokers use special kinds of software that help them scam you out of your money. As mentioned earlier in the book, their main aim is to somehow transfer your money into their own pockets. With all the websites these days, this makes it easier for them to do.
Stop-Hunting
This is the practice where a broker triggers a trader’s stop loss even when the actual market price is still a few pips away. Suppose you think a currency is heading up. You enter a position at 123.40 and you set your stop at 123.05, slightly below an obvious double bottom. Unfortunately, the trade begins to go against you and breaks down through support. Your stop is hit and you are out. This is when you might start to feel relief that you had that stop in place. Who knows how far it could drop, right? Wrong.
Guess what happens next. After taking out your stop, the price turns back and heads north, just as you originally thought. This is how your broker makes his money. The solution to this is to hide stop loss. The brokers what are commonly implicated in this dubious practice are market makers. A good way to detect this is if the trader opens three different trading platforms, and sees that the actual market price has not reached the stop loss level on other platforms. If a trader notices this pattern of persistent stop hunting by his broker, it is an indication that his broker is a scam Forex broker.
Spike prices
Your forex broker can turn your winning trade into a losing trade by using blip or a sudden spike in the price feed. What you don’t know is that the spike in the price action was artificially created by the broker. So my friend, if you are really serious about trading forex, you must know completely your broker first, before you start dabbling in the game of trading forex.
The above secrets and techniques are some thoughts that are used commonly by most broker companies.
Happy Trading!
thanks for the tips.
The Mt4 Virtual Dealer Plug-In is the most devilish tool used by devious forex brokers. It’s always a good idea to ask prospective broker if they employ it, just for the fun of seeing their answer LOL!
Very useful information.WIll definitely keep these in my mind.As a trader i look for a broker who have a very good support system and always there to help you out.
Profiforex is scamming people, stay away from them.
Thanks for mentioning them!
Keep in mind that aaafx is a good broker actually 
Wow, this is a long informative thread!
Bookmarking this and will come back for another read :35:
No matter which broker you choose, always make your due diligence first,
like I did with mine: aaafx - EU registered broker, spreads comparison, extra commissions on trades - none, slippage none, and overall stability of the firm. Things like that you should be taking into consideration.
I agree with your all points. i would like to address couple of reasons why newbie fails in Forex market:
- Lack of experience.
- Too much dependence on Signals.
- Trade without purpose.
- Trade with huge risk.
- Lack of trading strategy.
- Lack of own confidence.
Advice:
- Don’t be greedy.
- Don’t be emotional.
- Don’t trade on on the basis false assumption.
- Follow strong money management.
- Follow trading strategy.
- Don’t trade without analyze the market.
I agree with all of the above except for number 2!
This is exactly how I trade on zulutrade - meaning I depend on their signals and trades but, I do keep in mind to protect my small following account and thus trying to get small returns over high period of time with all the other points taken into consideration.
- Don’t be greedy.
One thing I’ve learned over the years, don’t ever be. I’ve learned this the hard way. 
5 tips to find a good forex broker online
It is very important to find a good online broker to help you start making money in the currency exchange market. Here is some advice that will be very useful when you are looking for a forex broker.
Online Forum: I advice you visit online forums. There are many forums online forex trading, forexfactory, babypips,trade2win …
HotForex 50% BonusYou can easily find a topic to discuss, to know what are the best online forex brokers. It is very important to make sure that the broker you choose is low.
Search online: use your favorite search engine, start making forex brokers research, it should give you more than enough results to forex brokers.
Good possibilities: the broker you choose should be available to answer all your problems and questions.
Bonus: be sure to select brokers who are regulated by the NFA… read more best forex broker
Top forex broker now here:
FXCM,
LiteForex,
FXOpen,
Deltastock,
Hantec Markets,
FIBO Group Holdings Ltd.,
GO Markets,
TradingPoint,
ACFX,
Alpari (UK),
ThinkForex,
UWCFX (United World Capital FX),
MasterForex,
BeamFX,
TradingForex,
FXDD,
Global Prime,
Forex Metal,
LQD Markets,
Admiral Markets,
XGlobal MarketsUSD/CHF
Long at 0.8820 with a stop at 0.8780 for a profit target of 0.9000
EUR/USD
Long at.1.3870 with a stop at 1.3810 for a profit target of 1.4000
best Forex trading,
what about aaafx? I would also add this broker to your list.
dear newbie,
i quit reading after the first page, i got the impression you were selling something. There IS no right broker and there IS no right method, if there were anyone and everyone would be using it by now and all the world would be a billionaire.
No offense, and im not gonna go through every letter but i did get the feeling you were selling something. People have to develop some kind of instinct or be born with it. You can not analyse a chart and predict the future. It tells you what happened in the past. The data is irrelevant unless you take the actual world events that happened at the time into account as well as what they did to the numbers. If you would be looking for a multidimensional pattern like that to repeat itself. Two clear signals could be like, lehman in 2008 or the first US shutdown in 95, they both gave clear consequence, and the REASON there was clear as well, you cant just take an overall average on everything and take it as a probability here, thats false statistics, you have to take the whole trinity and feel that you know what you’re doing or you’re gonna be closing trades for nothing to see them snap back or opening them up to see them fall back.
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there is no spoon, you have to dig it out for yourself and find what works.
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i like my broker, i have only one, they are not allowed to serve citizens of U.S. or canada, probably because of some idiotic governmental headbutt thats been going on for years leading to embargo of some kind, so i cant recommend them either, and i wouldnt, but they’re quite cool albeit quite strict. Definitely a lot less stuck up than your average BIGBANKWORLDRENOWNEDICHIBANNUMEROUNOALLTHEWAY broker advertised on every website.
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so im gonna try and just make one point before i get too elaborate : if you are incapable of digging up and sifting through information by yourself, then this is not something you should be doing, markets are all about influence so a lot of what you get is meant to do just that.
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i dont want them to exile me to mars so thats all im gonna say
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edit:
the <br> isnt necessary here ? that shows how long ive been here, we are all kosh, sorry for that im not gonna edit it out