Arrevedeci traders,
A friend of mine introduced me to a concept of opening multiple accounts with various brokers, to find a broker that is potentially STP becuase he said some of the biggest brokers with the likes of FXCM, City Index and Pepperstone operate much like a casino which came as a surprise as a vast majority of brokers are market makers. Am I better off learning how to gamble?
Your question can start a potentially endless debate. However, please keep in mind that even market-makers can be trustworthy. Whoever says that market makers are not honest is misleading. Don’t believe in the myth. Even then the question would be…so why is my friend suggesting to go with STP?? It is because…“theoretically, market-makers can be tempted to take advantage of their clients”. In contrast, there is no temptation for STP to manipulate because orders are routed directly to the market without dealer intervention. Still, it is extremely harsh to suggest that the above brokers are operating a ‘Casino-Like’ business. Perhaps, your friend is right in deducing that you should go with STP but comments of Casino operations shows that he/she requires further knowledge of how the industry operates.
Multiple accounts will never help you. A good trading strategy will …