Blog Forex.
Experiência de negociação de Forex em primeira mão e informações sobre o mercado de câmbio que serão úteis para os comerciantes.
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Como os corretores Forex podem trapacear você legalmente?
Existem muitos relatórios de corretores fraudulentos na indústria Forex. As empresas "Bucket-shop" atraem fundos dos clientes e, em seguida, simplesmente correm com eles ou criam condições comerciais injustas, segundo as quais todo comerciante perde dinheiro constantemente. Aqueles podem ser classificados como golpes verdadeiros e são claramente ilegais. Eles merecem seu próprio assunto e são discutidos em toda a Internet amplamente. Mas, infelizmente, os corretores de Forex legit (registrados e regulados) têm um arsenal desenvolvido de métodos para obter mais de seus comerciantes de maneira bastante antiética. Aqui vou tentar listar alguns deles.
"Sem taxas, sem comissão, sem custos ocultos" - essas são boas palavras para os comerciais, mas na realidade, todo corretor tem o direito legal de cortar alguns pips ou dólares extras em seu favor da sua posição. Eu sei pelo menos 4 desses métodos:
Expansão alargada - favorito de todos os corretores Forex. O aumento da propagação geralmente ocorre durante os períodos de alta volatilidade. O corretor pode deixar de alocar sua posição a um preço que cita (mesmo que seja completamente atualizado) e se proteja impondo um spread mais amplo do que o habitual no comerciante. Não há nada de errado com isso se, é claro, o corretor o faz honestamente. Na verdade, nada impede os corretores de se espalharem do que o spread necessário para ganhar vários pips dos comerciantes. O que você pode fazer para evitar a expansão do spread? Escolha um corretor que não seja conhecido por expansão excessiva ou simplesmente tente não negociar durante os períodos de alta volatilidade (lançamentos de notícias importantes). Slippage - não é desonesto, já que os provedores de liquidez do corretor podem mudar os preços de forma bastante rápida e o corretor simplesmente não tem escolha senão executar seu pedido a um preço um pouco pior. Mas alguns corretores usam o deslizamento para sua própria vantagem e oferecem-lhe para comprar um par de moedas em um preço um pouco maior (ou vender a um pouco menor) do que poderiam. A diferença é o seu lucro instantâneo. É impossível encontrar um corretor sem derrapagens, mas você pode tentar juntar um com o menor possível. Você também pode tentar evitar a negociação com ordens de mercado e mudar para parar / limitar pedidos; se você usar EAs, aplique um parâmetro de deslizamento reduzido nos pedidos. Swaps desproporcionais (taxas de juros overnight). Os corretores cobram e pagam swaps durante a noite, dependendo da diferença entre as taxas de juros de curto prazo associadas às moedas do par de moedas e estabelecidas pelos bancos centrais. Infelizmente, a diferença nem sempre é estrita - se o corretor deve cobrar o swap do comerciante, ele cobrará mais do que o necessário, mas se o corretor deve pagar o swap, ele pagará menos do que o necessário. Quando a diferença é bastante baixa (por exemplo, atualmente EUR / GBP tem taxas de juros de 1,0% e 0,5%, USD / JPY tem 0 e # 8211; 0,25% e 0,1%), o comerciante terá que pagar swaps de ambos os modos - não importa se um é longo ou curto no par. Este truque pode ser evitado através da negociação estritamente intradía, indo para a conta sem swap, escolhendo um corretor ao estudar suas condições comerciais para trocas melhores. Alavancar excessivamente não é realmente um método desonesto de corretores - geralmente são comerciantes que acabam de cair nos volumes maiores. E os corretores estão felizes em oferecer esses volumes maiores, pois aumentará seus ganhos por pip de spread. Lembre-se disso e não se sobrecarregue demais. Se você pode pagar - troque sem alavancagem (1: 1).
Se você deseja adicionar algo sobre o tópico dos corretores de trapaça legal dos comerciantes ou tiver alguma dúvida, use o formulário de comentários abaixo.
Posts Relacionados:
9 Responses to & # 8220; How Can Forex Brokers Cheat You Legalmente? & # 8221;
Nathalie Bowen.
Muito bom artigo. Muito direto ao ponto. Claro e conciso. Espero ler mais artigos de você sobre os fundamentos do Forex.
às vezes, quando tomamos posição, está além de pedir linha e linha de oferta. Não está se espalhando, está se espalhando.
27 de janeiro de 2012 às 10:02 da manhã.
Isso é chamado de derrapagem.
Fui enganado por um corretor forex ontem. Quando eu coloquei 2 negociações idênticas em 2 contas de corretagem separadas. O preço em uma conta ganhou lucro, enquanto o preço da minha segunda conta congelou até que ele acabou se virando contra mim e parou. O que torna a manipulação do mercado apenas um outro método que os corretores usam para enganar os comerciantes.
12 de junho de 2014 às 10:09 da tarde.
Primeiro, não há nada legal na manipulação de preços.
Em segundo lugar, por que você acha que foi manipulação pelo corretor? Os corretores usam diferentes feeds de dados, então suas cotações de preços não são necessariamente idênticas.
Alguns começam a parar a perda ao caminhar até o local onde você tem suas paradas configuradas. O mercado é 10 pips acima em todos os outros sites. Tenho três contas do MT4 ECN Brokers e todos estão sendo negociados por mim com o EA & # 8217; s e alguns manualmente e alguns no comércio de demonstração com uma EA que eu desenvolvo. Você pode ver a extensão do carimbo no gráfico de ticks ou o One Minute Chart.
21 de março de 2015 às 18h31.
Eu não chamaria de parar de caçar uma prática legal. Manipular as taxas de Forex dentro da plataforma de negociação para colocar os comerciantes em perda é uma atividade criminosa.
Oi, se o spread for aumentado de 21 para 199, em GBPUSD, sem mercado, sem volatilidade, e eles dizem que é devido a falta de liquidez & # 8221 ;, é uma fraude ou não? Muitas vezes, das últimas horas da sexta-feira e das primeiras horas do domingo ... É legal? Eu não penso assim ... algumas pessoas dizem que é legal ...
12 de setembro de 2016 às 13h13.
Não só isso é legal, mas também é bastante normal. Eu me preocuparia se um corretor não expandisse os spreads durante esses períodos e não resultasse em grandes falhas de execução / deslizamento.
FOREX BROKERS TRICKS E CHEATS INFORMAÇÕES.
Como os corretores do Forex tentam enganá-lo? Como comerciantes, somos obrigados a confiar nos corretores de Forex para podermos negociar. Sem eles, não teríamos como fazer pedidos e nenhuma forma de ganhar dinheiro.
O problema é que existem alguns corretores ruins lá fora, no mundo, e provavelmente há corretores mais ruins do que bons corretores de Forex. Você precisa avaliar e classificar cuidadosamente vários corretores diferentes para encontrar o certo às vezes.
O papel das corretoras Forex.
Nem todos os principais bancos comerciais têm o mesmo preço cotado. As empresas de corretagem tomam todos esses feeds de preços dos principais bancos comerciais e publicam a média aproximada das taxas de câmbio nas plataformas de corretores. Essas empresas de corretagem on-line abriram portas para o mercado retalhista. Os corretores de Forex atuam como mediadores entre o mercado interbancário e o mercado retalhista, em troca de uma comissão. Negociar diretamente com o mercado cambial e evitar a intervenção do corretor de Forex no processo de negociação é quase impossível para os comerciantes de varejo individuais, uma vez que requer uma grande quantidade de capital. É o corretor que está efetivamente negociando o comércio feito por especuladores e investidores menores, como hedge funds, empresas e comerciantes de varejo.
Mesa de negociação versus corretores de mesa que não são de negócios.
Agora que você entende mais sobre corretoras em geral, podemos dar uma olhada em alguns dos problemas que você pode encontrar com eles. Nós, como comerciantes, afinal de contas, precisamos nos defender.
Estas são algumas das maneiras como os corretores & # 8216; jogo & # 8217; comerciantes desavisados.
Ao ganhar a confiança do comerciante usando páginas oficiais muito oficiais.
Ao cobrar taxas de juros overnight adicionais.
Ao engajar-se em expansão alargada.
Ao encorajar o alavancagem excessiva.
Por boicotear seus próprios comerciantes / clientes.
Ao oferecer uma tecnologia de software inteligente para atrair comerciantes.
Ao oferecer um bom serviço de atendimento inicial.
Por parar de caçar.
Adivinha o que acontece depois. Depois de tirar a sua parada, o preço volta e dirige-se para o norte, exatamente como você pensou. É assim que seu corretor faz seu dinheiro. A solução para isso poderia ser ocultar sua parada de perda. Não é garantido para ajudar, mas pelo menos você terá certeza de que seu corretor não vê sua parada e tem a chance de tirá-lo por meios desonesto.
Ao assumir o papel de lojas de balde.
Distinguir corretores fraudadores de pessoas honestas.
Estados Unidos: National Futures Association (NFA) e Commodity Futures Trading Commission (CFTC) Reino Unido: Autoridade de Conduta Financeira (FCA) e Autoridade de Regulação Prudencial (PRA) Austrália: Comissão Australiana de Valores Mobiliários e Investimentos (ASIC) Suíça: Comissão Federal de Bancos da Suíça SFBC) Alemanha: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN) França: Autorité des Marchés Financiers (AMF)
A estabilidade financeira do corretor.
Se o seu corretor estiver localizado com qualquer um dos condados mencionados acima e sendo regulado por suas respectivas autoridades reguladoras e se esforçar para exceder os requisitos mínimos de regulamentação que a NFA, a CFTC e a FCA definiram, então você negociará com credibilidade e corretor honesto.
Confiabilidade da plataforma de negociação.
Capitalização.
Tipo de corretor.
Suporte ao cliente.
Custos de transação e estruturas de comissão.
Comissões incluídas no spread.
Taxa de spread variável variável da Comissão com base em uma porcentagem do spread.
Com o spread variável, o spread pode ser tão baixo quanto 0 pips ou até 3 pips na maioria dos principais pares de moedas. O spread também varia de acordo com o instrumento financeiro que você comercializa e a volatilidade do mercado. A maioria dos corretores cobra um spread de 2 pips em um mercado menos volátil. No entanto, se a volatilidade aumenta, o spread também pode aumentar, o que significa maior custo de transação para contas de spread variável. Além disso, os spreads entre diferentes pares de moedas podem mudar à medida que o nível de liquidez desse certo par de moedas muda.
Certifique-se de pesquisar com uma conta de demonstração a diferença de spreads entre uma conta ECN (como os spreads mostram aqui) e uma conta padrão. Se você estiver negociando com uma conta padrão, os spreads serão maiores.
Comissões cobradas por transação feita.
Outros custos de transação.
Custo de financiamento durante a noite.
Custo de inatividade.
Slippage ou requotes.
Manipulação de propagação e Stop Hunting.
As expansões aumentarão naturalmente durante os eventos de notícias de alto impacto e, especialmente, quando o volume do mercado é baixo (tempos de negociação no final do dia, por exemplo).
Depósito e retirada.
Tipos de contas baseados no tamanho do lote negociado.
Políticas de chamada de margem.
Reputação.
Como podemos escolher o intermediário certo para trocar?
Mas, novamente, isso não é verdade para todos os corretores. Embora a maioria dos corretores que sejam regulados pelas autoridades financeiras conduzam os negócios de forma ética, alguns corretores (geralmente não regulamentados) só querem seu dinheiro ao invés de ver você ter sucesso no negócio de negociação. Como regra geral, um corretor só irá ajudá-lo quando seus interesses estiverem alinhados com os deles. Um corretor que entrar em contato com você muitas vezes para convencê-lo a depositar dinheiro ou abrir uma conta com eles, é um sinal de que o corretor só quer seu dinheiro, e não para ajudá-lo a ter sucesso em sua carreira comercial.
Ao escolher um corretor, a facilidade de depósito / retirada, alavancagem, spreads e tecnologias inteligentes de software não são considerações importantes, pois são mais prováveis para fins de marketing. Uma boa propagação e alavancagem, facilidade em depósito / retirada e tecnologias de software de negociação únicas são inúteis se os outros fatores importantes forem ruins.
Use o ForexPeaceArmy para ler comentários sobre os corretores que você está pesquisando.
Sites adicionais que você pode recorrer para pesquisar e encontrar o melhor corretor para o seu negócio comercial.
Aqui estão alguns sites extras que podem ajudá-lo com sua pesquisa:
Os corretores de forex cheat traders
Como Forex Brokers pode trapacear você.
Afirmo que Gain Capital Group LLC é culpado de violar as seguintes regras de conformidade da NFA.
1. Norma de conformidade NFA 2-36 (b) (1)
2. Norma de conformidade NFA 2-36 (c)
3. NFA conformidade regra 2-9 (c)
4. Regra de conformidade NFA 2-11.
1. Norma de conformidade NFA 2-36 (e)
Sou vítima das ações da Gain & # 8217; não ações que resultaram em grandes perdas financeiras e tenho direito a reparações e danos punitivos.
Tenho o direito de recuperar reparações adicionais e danos punitivos, porque o CEO do Gain Capital Group, Mark Galant, falhou em seu dever ao permitir e, depois disso, não corrigir todas as deficiências que foram trazidas à sua atenção e violar a NPA-2, parágrafo 2, alínea e).
Tenho o direito de recuperar reparações adicionais e danos punitivos, porque o CEO do Gain Capital Group, Glen Stevens, falhou em seu dever, tendo a capacidade de ler a denúncia e as descobertas da NFA e não corrigiu todas as deficiências que foram trazidas à sua atenção e violou a norma NFA-Compliance 2-36 (e).
Eu era um cliente da empresa Forex.
EI PESSOAL. O PROBLEMA COM FOREX. FXCM. FOREX CAPITAL MARKETS LLC. 4XP. SÃO MARKETMARKERS. SIGNIFICA QUE NÃO ENVIAM TODOS OS NEGOCIOS AOS MERCADOS NO STP (STRAIGHT-THRU-PROCESS). MANEJAMOS OS NEGÓCIOS EM CASA DOS CLIENTES. E HEDGING ALGUNS OUTROS CLIENTES. TAMBÉM RESERVAR ALGUNS NEGOCIOS. E ESTE ESCRITÓRIO TRATANDO LADO. É APENAS COME SUA POSIÇÃO. PORQUE COLOCAR O SEU DINHEIRO NO SEU BOLSO.
Esquisito total. Seja muito cauteloso. Adorei sua conta demo e tive um bom sucesso com ela. Quando fiquei ao vivo com o forex, tudo mudou. Eu suspeito que eles estão envolvidos em atividades ilícitas. Eu estava envolvido em uma escola de forex on-line que os recomendava. Quando o comércio vivo com eles provou ser tão impossível, em comparação com a demonstração, comecei a sentir que eu tinha sido configurado. Isso é apenas especulação e pode ser muito baixo, mas eles definitivamente trabalham duro para garantir que você não se beneficie. Eu não acredito nos comentários sobre ganhar muito dinheiro com o forex. Desconfio que o corretor escreveu isso. Eu posso ser bastante novo no forex, mas eu gosto muito bem, desde que eu esteja muito atento. Eu não sou simplesmente um idiota forex que está culpando o corretor por minhas falhas. Algo muito estranho aconteceu ao negociar com esta empresa. Eu nunca mais os usaria e nunca os recomendaria a ninguém.
Esses caras são uma farsa pura. Eu tinha como $ 5000 na minha conta e eu estava negociando 1 lote padrão com uma perda de parada mental (porque esses caras perseguirão sua perda de parada se você colocasse lá). Meu comércio estava indo na direção certa, então a plataforma foi desconectada. Demorou uma hora depois para voltar e adivinhar o que, eles venderam minha posição por perda de $ 600. Isso não é uma loucura onde perto da margem, tenha em mente você. Eu resgatou o mais rápido possível.
Eles caçam suas paradas e o movimento ascendente (ou descendente) será determinado pela quantidade de dinheiro que você deve perder. Tenho gravado, usando três contas separadas, que cada vez que eu ganho lucro, esse lucro é obtido no "próximo" comércio com base em quanto eu tenho em minha conta. Por exemplo, em 100% das posições fechadas, o preço de mercado inverteu 1 pip acima ou abaixo da minha posição disponível. 1 pip. Na noite passada, a Forex fechou minha posição EUR / USD em 1.5573 quando eu podia pagar 1.5572; Isso aconteceu às 5:42 pm e, em seguida, o preço caiu 60 pips imediatamente após fechar minha posição. Isso já aconteceu mais de 100 vezes, usando 3 contas separadas que eu configurei usando três nomes; O nome da minha esposa, meu nome e o nome de um amigo que concordaram em colocar US $ 1.000 em nosso teste. Forex são fraudadores simples, nada mais ou menos. Eles manipulam o mercado com base nos dados de seus clientes (ou seja, balança de conta, paradas ou ordens limitadas, posição atual). Com esses dados, qualquer pessoa com uma conta de negociação poderia manipular o mercado e é isso que eles fazem. Pense nisso. Responda uma pergunta: em 100 testes, por que o preço reverte 1 pip depois de fechar minha posição, independentemente de estar comprando ou vendendo? Se você pode responder a essa pergunta, envie-me um e-mail para o gregw3rez.
Visite a National Futures Association nfa. futures Digite "fxcm" no site inteiro da NFA de busca. Veja quantos litígios e reclamações surgem. Não é preciso dizer mais nada. Fique bem claro de FXCM não cair na armadilha de marketing.
..i comércio 2 mini lotes e set stop loss 25 pips ... mas, de repente, pare a perda de mudança para 45 pips ... Por que?
Isso significa que se você estiver usando o robô, ele não pode fechar a posição. Isso acontece tantas vezes. Se você ganhar dinheiro, o botão Fechar será LOCKED. Eles não permitirão que você feche. Então você precisa chamar seu apoio para fechar.
Eu não comecei com muito, eu só coloquei $ 5000 na minha conta e troco 50.000 lotes.
Primeira experiência, houve novidades que moviam o mercado a meu favor, eu tinha um limite de 40 pips, mas queria removê-lo, continuava tentando enviar ordem, mas continuava retornando uma mensagem de erro. Liguei para FXCM, então talvez eles possam fazê-lo desde o final, pois não estava funcionando, tentei cerca de 10 vezes. cerca de 15 minutos depois, minha posição fechou, mas o mercado moveu cerca de 30 pips mais, o que eu perdi.
Segunda e experiência atual, eu abri um pedido de compra para EUR / USD, e novamente o mercado mudou-se a meu favor, deve ter havido novidades ou algo assim, mas o movimento cerca de 55Pips. Eu não coloquei uma ordem limite, e agora eu quero fechar minha posição, mas não posso entrar. Tentei fazer login nos últimos 45 minutos e ainda não conseguir entrar. O mercado agora recuperou 28pips, e eu ainda não consigo entrar. Mantenha o erro de tempo limite.
BTW - Eu uso um gráfico da web e troco através do aplicativo móvel FXCM. Talvez a estação comercial seja melhor, mas não tenho onde estou agora.
Parece que o mercado está subindo novamente, então talvez eu possa sair em breve. Talvez eu os ligue e peça que eles fechem minha posição para mim!
Eu li as críticas ruins e pensei em mim mesmo que as pessoas que publicam essas críticas só precisam fazer desculpas para as suas próximas faltas. Então eu segui adiante e abri uma conta com a FXCM e percebi rapidamente que eles te fraudam e você não pode fazer nada sobre isso. Eu tive exatamente as mesmas coisas que acontecem comigo, como todas as outras publicações mencionam, e mantiveram o gráfico de carrapatos aberto e assistiram a propagação se alargar para acertar a minha parada e, por outro lado, observou que ele se ampliou para que não atingisse meu ordem de lucro, tirei rapidamente a ordem de lucro e a propagação voltou ao normal, adicione a ordem de volta e a propagação novamente se alarga por duas vezes o normal.
E, apenas para o registro, eu tenho negociado FX por 5 anos e nunca postei em blogs, mas tive esse tempo.
Eu sou comerciante e hoje meu cliente perdeu mais de 10.000 euros com a FXCM nos negócios que nunca fizemos. Fique longe de FXCM ou você perderá seu dinheiro.
e teve uma execução instantânea. mas. Ele imediatamente lê MINUS 33 pips.
Além disso, FXCM achou "sábio" abrir-me no 116.858. em vez de 117.25.
Em vez de 45 pips mais. porque? Porque o que podemos pensar nessa fase? Will FXCM apenas piora e vai ao extremo.
e nos leve a menos 50 ou mais pips.
Eu tenho usado FXCM por 3 meses até agora e eu estava perdendo dinheiro na maior parte. Isso foi bom até eu começar a melhorar minha negociação. Depois de um par de bons negócios vencedores, eles pararam de executar minhas perdas de parada e só me levaram depois que eu perdi 30 pontos extras de aroud.
Em outras duas ocasiões, minhas perdas de parada foram executadas por picos suspeitos na taxa que realmente não existia no preço em outros gráficos.
Eu estava claro que eles não estavam envolvidos com meus negócios quando eu estava perdendo dinheiro, mas uma vez que eu ganhei, eles começaram a trabalhar contra mim.
Eu simplesmente parei de negociação por enquanto e estava procurando por um corretor honesto. parece difícil encontrar um.
O pior corretor lá fora. Eis o que aconteceu comigo recentemente. (12 de julho de 2009). Eu entrei em EUR / USD curto 50K de comércio como Pedido de Mercado. Troquei diretamente do quadro de velas. Quando eu toquei o botão OK, a caixa de diálogo desapareceu e nada aconteceu. Eu verifiquei a guia Ação e a guia da minha conta, parece que o comércio não passou. Aguardo por quase 10 minutos b / c Eu tive problemas com eles no passado, quando o comércio levaria quase um minuto para executar. então este não foi o caso dessa vez. Parecia que o comércio não passava. então ouça isso agora ... quando no dia seguinte, na segunda-feira (14 de julho de 2009), quando cheguei na minha conta e registei em seu sistema, coloquei-me no comércio que eu tentei há quase 24 horas e, obviamente, estava indo contra mim. então eu liguei para eles e eles me disseram que iriam olhar para isso e alguém entrará em contato comigo dentro de 24 horas me perguntou se eu queria sair desse comércio. obviamente, uma vez que estava indo contra mim, eu lhes disse para fechar esse comércio. para cortar a longa história curta, uma mulher me liga no dia seguinte e me diz que ela não pode fazer nada sobre esse comércio b / c, seu sistema mostra que eles execíram o comércio imediatamente e basicamente estou inventando que não mostrou no meu terminal. então eu perdi $ 50 USD apenas b / c seu sistema st * pid não mostrou o comércio no meu terminal. Ah, para não mencionar que toda vez que seu sistema entra em mim 2 a 3 pips contra o meu comércio no topo da propagação, que nunca é menos que 2,9 pips. também o seu sistema está batendo pára quase 6 pips antecipadamente e limita 4 a 6 pips após o valor de mercado. Todos em tudo ficam longe desses bandidos. Eles vão te dizer que é a sua conexão com a Internet e fazer outras desculpas que inicialmente pensei que era o caso, mas depois de testá-los na conta ao vivo por mais de 6 meses, chegou à conclusão de que seu software de terminal está escrito para ir contra negócios de clientes. A derrapagem nunca está a seu favor. FIQUE DE ESTES TH * EVES.
6 maneiras que corretores de Forex Cheat You.
Ganhar dinheiro através da negociação forex precisa de 3 requisitos a serem cumpridos ao mesmo tempo:
Técnicas Situação mental adequada Corretagem adequada.
Temos de falar sobre todos esses 3 requisitos regularmente. Concentrando-se apenas nas técnicas, ou dando-lhe os sinais forex sempre que há uma configuração de comércio não é um comerciante. Você precisa aprender as técnicas e dominar seu sistema comercial e, ao mesmo tempo, você deve construir um status mental e psicológico adequado e estável para si mesmo. Além disso, você também precisa saber sobre os corretores, a forma como eles trabalham e ganham dinheiro, e a maneira como eles podem enganar seus clientes para ganhar mais dinheiro.
Como comerciante de varejo, você precisa ter uma conta com um corretor, caso contrário você não poderá negociar. Muitos comerciantes profissionais, hedge funds, gerentes de dinheiro, empresas comerciais exclusivas e comerciantes institucionais que têm grandes capitais comerciais, trocam os bancos através dos bancos. Alguns deles têm suas próprias plataformas customizadas conectadas aos provedores de liquidez. No entanto, comerciantes de varejo novatos que desejam começar com uma conta pequena, tem que se inscrever para uma conta com um corretor, porque eles não podem dar ao luxo de negociar através dos bancos, ou ter sua própria plataforma.
Se você é um comerciante de varejo que quer abrir uma conta ao vivo no futuro, ou já abriu uma conta ao vivo, você deve saber como os corretores ganham dinheiro e como podem enganá-lo para ganhar mais dinheiro.
Antes de ir aos detalhes, tenho que esclarecer algo:
Há tantos comerciantes que abrem uma conta ao vivo antes de aprenderem a negociar corretamente, e assim eles perdem. Em vez de encontrar o problema e tentar consertá-lo, muitos deles costumam acusar o corretor. É verdade que muitos corretores enganam seus clientes, mas a maioria dos comerciantes de varejo perdem por causa de seus próprios erros, não porque os corretores os fazem perder. Um negociante de trapaça pode fazer com que os comerciantes perdedores perdam mais e acabem com suas contas mais rapidamente, mas um comerciante profissional pode facilmente descobrir que o corretor está traindo, para que ele retire seu dinheiro e feche suas contas o mais rápido possível. Então, se você perder dinheiro em um comércio depois de ler este artigo, não pense imediatamente que o corretor o tenha feito perder.
Eu vou ter um artigo separado sobre as formas em que o corretor pode ganhar dinheiro legalmente. Neste artigo, estou falando sobre as maneiras pelas quais os corretores enganam seus clientes para ganhar dinheiro ilegalmente.
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Regulamento.
Hoje em dia, os comerciantes falam sobre regulamentação o tempo todo. Uma corretora é regulada quando está registrada em uma organização governamental que monitora as atividades das empresas corretoras. Geralmente, também há algo como seguro que cobre o capital dos comerciantes se o corretor registrado entrar em falência.
Quando os comerciantes descobrem que uma empresa de corretagem é regulamentada por organizações e autoridades bem conhecidas e poderosas, eles pensam que estão seguros e não podem ser enganados, mas isso não é verdade. Eu vi alguns corretores altamente regulamentados que mais enganam seus clientes. Como?
Há sempre algumas maneiras especiais de trapaça, que não podem ser rastreadas pelas autoridades reguladoras. Os corretores podem facilmente subornar as autoridades reguladoras e pedir-lhes para ser mais gentil para eles e fechar os olhos em alguns eventos. Muitas das pessoas que trabalham nas autoridades reguladoras são donos das corretoras e, portanto, sabem como ignorar as regras.
O mercado de regulação & # 8220; & # 8221; começou a ficar quente desde há alguns anos, e os comerciantes pobres pensaram que os governadores finalmente decidiram apoiá-los contra os corretores de trapaças, mas estavam errados. Há provas de que esses regulamentos são feitos pelos governadores que, direta ou indiretamente, possuem corretoras e fazem milhões através delas. Eles fizeram as regras de regulamentação para evitar que os comerciantes abram contas com as corretoras offshore, de modo que o dinheiro permaneça em seus próprios países, e os comerciantes se tornam obrigados a abrir contas com as corretoras de propriedade dos governadores. Estou certo de que você pode adivinhar o resto da história & # 8230;
Alguém que tem OURO faz as regras!
A conclusão é que a & # 8220; regulação & # 8221; não significa necessariamente que o corretor não possa enganar. Também não sendo regulamentado não significa que o corretor cheira definitivamente. Para alguns corretores de trapaça, & # 8220; regulamento & # 8221; é apenas uma ferramenta para atrair mais comerciantes para abrir contas. Eles são regulamentados e registrados porque eles precisam, não porque sejam honestos. Não estou dizendo que todos os corretores registrados / regulados enganam seus clientes. O que estou dizendo é que não confiamos em um corretor apenas porque está regulamentado e registrado.
Há coisas sujas por trás desses tipos de ações aparentemente boas (regulação). Quando eles descobriram que poderiam ganhar muito dinheiro com as perdas dos comerciantes, eles tomaram ações para (1) evitar que os comerciantes & # 8217; fundos para deixar o país, e (2) tornar muito difícil para as pequenas corretoras se tornarem registradas e regulamentadas, porque (1) eles queriam manter os comerciantes & # 8217; dinheiro em seu próprio país, e (2) apenas suas próprias corretoras se tornam reguladas e os comerciantes não podem abrir contas com as outras corretoras. Na verdade, eles criaram um funil para drenar os fundos para seus próprios bolsos. No entanto, as pessoas simplesmente vêem a superfície e não estão cientes do que está acontecendo atrás da cena.
Deixe-me fazer uma pergunta. Mais de 95% dos comerciantes perdem dinheiro. Muitos deles eliminam suas contas pelo menos algumas vezes, antes de desistir da negociação forex. Muitos deles perdem muito dinheiro. O que esses regulamentos chamados têm feito para essas pessoas?
Nada. Mais de 95% do comerciante perdem. O que os governadores fizeram não é sobre apoiar os comerciantes. Trata-se de dirigir os fundos para a direção que eles querem. Eles poderiam facilmente fazer uma regra que não permite que aqueles que não passaram alguns cursos de treinamento e estágios para abrir contas ao vivo. Você não pode dirigir um carro quando você não possui uma carteira de motorista. Eles poderiam fazer o mesmo com ter uma conta ao vivo também. Por que não o fazem?
Você sabe a resposta. Eles querem que você abra uma conta ao vivo antes de aprender a negociar corretamente e perder seu dinheiro. Antes dos regulamentos, eles estavam preocupados com você para perder seu dinheiro para as corretoras no exterior, mas agora está certo se você perder, porque seu dinheiro vai para seus próprios bolsos agora.
Agora, deixe falar sobre as maneiras pelas quais os corretores podem trapacear para ganhar mais dinheiro com seus negócios. Antes de ler o restante desta publicação, recomendo que você leia um pequeno artigo já publicado no LuckScout, para conhecer os dois tipos diferentes de corretores, criadores de mercado e ECN / STP.
Quando você aprende sobre o fabricante de mercado e corretores ECN / STP, você pode pensar que são apenas os corretores de mercado que enganam os comerciantes. Isso não é verdade. Os corretores ECN / STP podem enganar para ganhar mais dinheiro.
1. Stop Loss Hunting:
Parar a caça à perda é uma maneira muito eficaz de que os corretores do mercado criem para fazer os comerciantes perder dinheiro. Para saber mais sobre este método, leia este artigo: Stop Loss Hunting por Forex Brokers - O que fazer?
Os corretores ECN / STP só devem transferir as ordens para os provedores de liquidez (bancos). Eles só podem cobrar uma taxa fixa (comissão) por cada pedido, e esta taxa é a única maneira para os corretores ECN / STP ganhar dinheiro. No entanto, muitos deles que são gananciosos, querem ganhar mais dinheiro por meio de outras maneiras. & # 8220; Markup & # 8221; é uma maneira usada por esses corretores para ganhar mais dinheiro em cada posição que os comerciantes recebem.
O markup é um pipinho extra que o corretor adiciona ao spread de base do fornecedor de liquidez. Por exemplo, o fornecedor de liquidez espalhado para EUR / USD é de 0,5 pips, mas o corretor adiciona 1 pip, e assim o spread total se torna 1,5 pips. Nesse caso, o corretor faz 1 pip, além da comissão que é legalmente autorizada a cobrar.
Como você pode descobrir que seu corretor adiciona marcas?
Você pode primeiro perguntar ao corretor. Às vezes, eles dizem que estão fazendo isso. Muitos deles acreditam / afirmam que é seu direito de adicionar markups enquanto eles cobram comissões também. Muitos deles negam e afirmam que o spread que eles oferecem é o spread de mercado forex normal. Você pode facilmente comparar a sua propagação com a propagação normal do mercado. Se for 1-3 pips acima do spread regular, então eles estão adicionando markups ao spread. Hoje em dia, os provedores de liquidez oferecem um spread muito baixo, tão baixo quanto 3 pips para GBP / JPY que foi usado para ter uma propagação relativamente alta no passado. Se um corretor ECN / STP não adiciona quaisquer markups, sua propagação deve ser muito baixa.
Quando você descobriu que seu corretor cobra taxas também, será sua escolha retirar seu dinheiro e fechar sua conta e encontrar outro corretor. No entanto, você deve notar que às vezes o corretor adiciona marcas, mas é um corretor ECN / STP real e você não tem problemas para abrir e fechar suas posições. Se apenas alguns pips de marcação não fizerem uma grande diferença, você melhorará manter sua conta.
Não faz sentido para um corretor de criação de mercado adicionar marcações. A propagação que eles oferecem é completamente por seu próprio controle, e eles não conseguem o spread de um provedor de liquidez. Portanto, eles podem aumentar a propagação diretamente e eles não precisam adicionar marcas.
3. Slippage.
Um alto spread por causa da adição de marcas pode ser facilmente observado na plataforma, verificando a diferença dos preços de oferta e de venda. No entanto, o deslizamento está escondido para os comerciantes. Você não consegue descobrir que o corretor desliza o preço desde que não tenha aberto e fechado quaisquer posições.
O que é Slippage?
Slippage é um truque feito pelos corretores do mercado. Como o seu lucro é a sua perda, então eles têm que fazer o seu melhor para não deixá-lo ganhar. Uma das maneiras é que eles deslizam o preço quando você quer pegar ou fechar uma posição. Quando você quer comprar e clicar no botão de compra, eles de repente levam o preço mais alto, de modo que você entrará com um preço maior do que o que você vê no gráfico. Por exemplo, você quer comprar EUR / USD enquanto o preço de compra é 1.31216 na plataforma. Você clica no botão de compra e entra, mas quando você verifica seu preço de entrada, você verá que é muito maior do que o que viu na plataforma. Para exemplos, é 1.31320.
They don’t make you enter with a lower price when you want to go short (sell), because it doesn’t make sense to enter with a lower price when the actual sell price is higher on the platform. However, when you want to close a short position (you buy) they slip the price and you get out with a higher price.
Slippage causes you not to make the profit you could make with your winning positions, and lose more with your losing positions, because it worsen your entry/exit prices.
Market maker brokers don’t do this manually. It is all done automatically and through some special settings of the platform.
If you ask them why this happened, they will answer that it is because of the market situation, volatility and… .
With the real ECN/STP brokers sometimes you see that your entry is not what you saw on the chart. You may think that they also slip the price when you enter, but this doesn’t make sense to do if the broker is a real ECN/STP broker. They don’t make money from your losses, so they don’t have to make you lose. In contrast, they want you to win, grow your account and keep on trading with them, so that they will also make more money in long term.
Slippage is normal with the real ECN/STP brokers, specially when the market is volatile and during the news release time, because ECN/STP brokers have to route your orders to the liquidity providers. Although this is done automatically and electronically, but it takes some time and it is possible that the price changes during this time, specially when the market is moving strongly. So you will enter with a different price than what you saw on your platform. With the market maker brokers, this difference is always against you, but with the ECN/STP brokers it is sometimes against you, but sometimes in your favour.
4. Re-quoting.
Re-quoting is another trick made by market maker brokers. When the price is going up strongly, and you choose the right direction to enter (you click on the buy button), the broker delays for few seconds, and then instead of taking the position for you, gives a new price which is higher than the price you want to enter (because the price is going up strongly).
They do it when you choose the right direction. When the price is going up strongly and you buy, then you will make profit, and this is what a market maker broker doesn’t want. So it doesn’t let you enter with the buy price that was being offered when you clicked on the buy button, waits for few seconds for the price to go higher, and then offers you a new price, which is called re-quoting. Then you will have to click on the buy button again to enter. It is possible that they re-quote again, and repeat this process for a few times, to either stop you from entering the market, or make you enter with a much higher price. They just want to sabotage your trading.
Similarly, when the price is going down strongly, and you choose to go short, they don’t let you enter and wait for the price to go lower, and then they re-quote. They cause you to enter with a lower price to prevent you from making a good profit from your short position.
If you find out and complain, they will say they have no idea, and re-quoting is just the result of the markets volatility, and they have no control on it, and… . Whereas this is absolutely a big lie. They do the re-quoting through some special software and settings they apply to the platforms. They do it 100% intentionally.
Real ECN/STP brokers don’t re-quote, because it doesn’t make sense for them to do it. It will have no advantage for them. However, if a broker claims that it is a real ECN/STP broker, and it re-quotes at the same time, then it is not a real ECN/STP. It is a market maker broker.
Swap is the interest you have to pay when you hold your position overnight.
Swap has to be calculated through a special formula, and as each currency interest rate is clearly stated by the related central bank, the swap has to be a constant amount with all of the brokers, banks and liquidity providers. However, the swap you actually pay is different from broker to broker. It is OK if it is not too much, but if you see your broker charges a lot as the swap, then you have to ask them about the reason, and you have to close your account if they don’t fix it. Swap can cause you to lose a lot specially if you hold your positions for a long time.
6. Leverage.
Leverage is a good facility that helps us trade large amounts of money with a smaller account, and make bigger profits compared to the time that there is no leverage. However, it is a two-edge sword that can cut our own throat, if not used properly. Most of the novice and inexperienced traders misuse the leverage and take huge positions that their account balance is not high enough to handle. So that when the position goes against them, they get margin call and stopped out very easily and the whole account will be wiped out.
Real ECN/STP brokers that are connected to real liquidity providers cannot offer a leverage higher than 100:1, because the liquidity providers do not support a leverage higher than this. If a real ECN/STP broker offers a higher leverage, and the client’s position goes to loss, then it is the broker who has to pay the extra loss. So a real ECN/STP broker never supports a leverage higher than 100:1.
However, market maker brokers can offer any leverage they want. I see that nowadays some of them offer 2000:1 which is crazy. Why do they do it?
They know that over 95% of the traders don’t know how to trade and they wipe out their accounts sooner or later. A higher leverage makes them take bigger positions, lose more and wipe out their accounts faster and easier.
When you see a broker offers such a high leverage, don’t think that they do it for your favour. They think about making more money within a shorter time.
This is it about the ways that brokers can cheat you. Please don’t ask me to recommend you a broker to open a live account with. I will never do it. I have good reasons for that.
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Thanks Chris another v useful article. And the USDCAD setup you mentioned 2 days ago has moved powerfully today!
I observed that GBPCHF really took a hit after news about the Swiss GDP (both YOY and QOQ) came out much worse than forecast. But if the Swiss economy is doing badly, then why does the GBP go down so hard and fast against the CHF? Should it not be the other way around? the GBPCHF lost like 80 pips in a few hours. Could this just be a false move created by the big players to be able to enter at much lower levels when the true move starts? Doesn’t really make a lot of sense this move. Obrigado.
It is not the first time I see that the price moves against the news. Is it a false move or not, is what we have to wait and see. Mas quem se importa? We trade only when a strong setup is formed on the chart. The rest is none of our business.
Thanks Chris, i mention this because i saw what i thought to be quite a strong continuation signal on the weekly chart for GBPCHF – strong up trend, pullback to BB mid band, and strong candle close last week. But it seems that in the end it is not that strong.
Hi Chris, thanks for the article, interesting. Are you SURE that true ECN brokers only give leverage up to 100:1. Because I’m with two brokers, Pepperstone and Axitrader, they both claim to be ECN, and they both give leverage above 100:1. One is 200:1 and the other is 400:1.
Any way, I went long on the USDCAD trade, and I’m in profit now 50 pips. I’m trading without a stop loss, because I’m only trading 0.05 of a lot. How long should I hold the trade for? another 50 pips or so until I hit the resistance?
Keep it up Chris, and thank you very much!
Yes I am sure. Those brokers are not real ECN then. There are some apparently ECN brokers, but they don’t route the orders to the real liquidity providers. They route the orders to another broker which market maker and usually belongs to the same company. So they are ECN electronically, but are market maker in reality.
My first target is 155 pips because my stop loss is 31 pips.
Hi Chris, does it look like a potential short setup forming on GBP/JPY ? if the bar closes as a Doji with quite long shadow and breakout from upper BB? or will it be not strong enough? .. thanks.
It is relatively strong, but it needs confirmation.
First of all thanks for your articles, wonderful website. Its daily feed for me. One question I am struggling and its big one. How to know if your broker is reliable.
Would it be possible to generate a list that which brokers are ECN or which one are STP or DD ?
That would be really helpful for novice trader like me.
Hi Singh, I can not list any broker here, nor I can recommend any broker. There are too many brokers coming and going every day. You can google and find good ECN/STP brokers. It is not too hard.
I am also in doubt that true ECN only offer leverage up to 1:100. To my understanding, it maybe true in the past as interbank network only accepted large lot size orders but in nowdays they start to accept smaller lot size like 1000 units. I don’t know if it is true. Like CM-US new pricing model, it looks like they are a mixture of MM and STP and I think it shouldn’t be an issue trading with this type of brokers as long as they are honest. Moreover, those dirty tricks played on old days are easily being caught by experienced traders and cause their operation license revoked. The thing is someone else has to be your opposite site to make the deal anyway, I wouldn’t mind who takes as long as they don’t play dirty tricks.
Oi Tim. I demo trade with Pepperston but plan on opening a live account with a local broker in my own country. They say it’s easier and cheaper to do so. For example, I don’t have to pay any bank charges when my profits are transfered to my bank account from a foreign broker. Anyway thanks for the heads up. You too Chris.
This was a really useful article, thank you!
I know a broker, who has 100:1 leverage, but at weekends lower (30 only). They say that they are true ECN. Their spreads are also quite tight: EUR/USD 0.2-0.4 pip, USD/JPY similar. And there is a volume commission. They provide Market depth data.
These facts confirm that they are really ECN, am I right?
And why is the weekend leverage lower, do you know? Is this typical for true ECN brokers?
Do they lower the leverage during the weekends even when you have open positions?
Yes, they clearly state this on their website. They reference to possible weekend price gaps, which would seriously threaten invested funds.
Then there is no doubt that they are market maker. They lower the spread to make all the accounts with negative open positions to reach the stop out level and get wiped out. For example, you have a $1000 account and you have a 0.2 lots EUR/USD position which is -$300. About $262.96 goes for the 0.2 lots EUR/USD position as the margin. So (-$300)+(-$262.96)=(-$562.96)
A $1000 account still can handle a -$562.96 negative balance with the leverage of 100:1. But if they lower the leverage to 30:1, then $876.53 is needed as the margin of a 0.2 lots EUR/USD position. As your position was $300 in loss, then (-$300)+(-$876.53)=(-$1,176.53)
You don’t have $1,176.53 in your account, so your 0.2 lots position will be closed as soon as the broker lowers the leverage to 30:1, so that you will lose $300.
Only a market maker broker do this, because your loss is their profit. For an ECN/STP broker doesn’t make any difference whether you win or lose.
Seja cuidadoso. You are not in good hands.
Thanks for your explanation, I will ask them about leverage.
I have found another broker whose weekend margin requirement is higher.
It looks quite a reputable broker.
It’s different from usual “bucket shops”, it says: “we operate a minimum trade size of $US 10,000”, and “minimum deposit of $US 20,000 is required”
Can it really be a market maker because of the lower weekend leverage?
Lower weekend leverage is nothing but a dirty trick by market maker brokers to make the accounts with big losing positions reach the stop out level.
Off topic……What do you think of the pin bar that is forming on the GBP/JPY daily chart? Is this a good to go short trade? or was the previous candle not strong enough? perhaps we should wait for confirmation…………
Thanks a lot for your time!
It is a good shooting star with a strong Bollinger Upper Band breakout. However, it is recommended to wait for the confirmation.
I always wondered why an entry buy was always higher than the actual market price and why a sell was always at market. Now I know. Maybe I should become more of a short trader…LOL.
It doesn’t make any difference. When you are short, you will have to pay the spread when you exit. So the price has to go below the level you set your target, to cover the spread. Otherwise you can not get out.
Oi Cris. Thank you very much for your daily feeds I just love ur topics. M currently demo trading on etoro but planning to open a live account with cm when m ready. I have a question regarding aud/usd candles that formed on september 1 and 2. Could they be considered as a sell setup at the end of september 2 candle? I sold at the close of this candle n my stop loss is about to be triggered since I set it to half the bearish strong candle. Obrigado.
It was too late to go short. I wrote an article about this last night which is just published on the site:
thanks Chris.. all posts of this site are very useful..thanks again you…
Chris what’s your recommended brokers to trade?
Hi Asiri, Thank you too. Unfortunately I can not recommend any broker here. Sinto muito.
Chris… After I see your reply I feel, If we know the and trade properly It’s may be more risky that trade with brokers.. so they can wipe out us not our bad trades…LOL…
Hi Asiri, It is not too hard to find a good broker. You can easily google and find it. Keep in your mind that more than 95% of the traders lose, because of their own mistakes, not the brokers.
Thanks Chris I got it…I follow your posts continuously……
I have found an article that helps how to identify a real ECN broker:
Chris, do you think the article shows a right approach?
Hi Otto, I read the article. Obrigado.
Anything it says is true. Of course it has not covered a few important things like leverage and swap.
Is it possible to have a broker who offer both market maker and ECN/STP accounts?
Sutivserv, There are some brokers who offer both. However, I am not sure if their ECN service is a real ECN or is just another dealing desk.
All I can say Chris is thanks a lot for your very important inputs, may your tribe increase as the saying goes…….
Thank you Alejandro.
hi Chris, thank you very much for your honest help to traders.
i’m an cm customer and traded with mixed fortune for 2 years.
my last strategy is giving me great satisfaction but the problem is cm spreads are too high and it’s hard to keep my gains.
i should cut spread cost to 50% in order to be regularly profitable.
cm active trader account (requires 25,000 usd deposit) allows an average cost cut of 25% on main crosses which for me is not enough.
i searched another regulated broker and made a database of bad reviews (not interested in marvelous fake reviews) from various websites (excluding those of last minute.
traders who typically complain about huge spreads during key news)
well, i’ve to say that i’m really discouraged as slippage, requotes, platform freezing, bad customer service, difficulty in fund withdrawals and manipulations of all sort occur in most cases.
i’m really wondering if the entire business should exist if it’s managed in this terms… shouldn’t be a surprise though given the number of new brokers opening their doors nearly every day… they are attracted to this shady business like bees on their honey… why not? casinos do not fit everybody.
please share your thoughts if some traders here are more hopeful than i’m.
Obrigado, irmão. your discussions are serious eye opener. Is it ok to set a very high stop loss order?
Você é bem vindo. What do you mean by very high stop loss order?
Hi Chris, Eye opener! Muito obrigado! Where do I find your trade discussions? i. e. “And the USDCAD setup you mentioned 2 days ago has moved powerfully today! & # 8220;
Você é bem vindo. You can follow our market analysis and signals here:
Thank you very much for the article. Very useful.
My question is can a real ECN/STP do markups but not charge commissions?
They claimed they only make their profit through markup and 0 commissions. O que você acha?
Yes, they can do that. Markups are not clear for traders. They don’t know how much they are paying for marketups. But commission is a constant fee. It is a red flag if a broker charges markeups.
Obrigado pela informação. I oppened an account with a broker in the UK (regulated by the FCA). When I was about to wire money to fund the account, I noticed their bank account where they requested me to transfer money to is in Latvia. I thought it would be in the UK, as well as my account. I wanted a UK broker. Is this legal or is there a red flag.
You say they are regulated with FCA.
The best thing is that you ask them why you have to send your money to Latvia. Their answer is important.
True ECN/STP, do they guarantee no negative account balance?
No, they cannot do that. You lose to the liquidity providers not the broker.
Thanks god i read this article. I’ve been trading in a demo acc for 6 months, with good results and im planning to open a real acc in the next couples of months. This article came in good time.
All the article is true and all the things are true. This is also my experience. Now a days , it is hardly to find true ECN broker but i can say Octa is good for tradings. I do the trades with them for 6 months. I got 12000 dollars from them but then they excuse me from giving more services but i recommend every one to test it.
Thank you again for an insighful article.
please can briefly explain how slippage affects pending order. Its giving me some nighmare. Obrigado.
Exactly the same as it affects the market orders. It makes you enter the market with a much different price than what the pending order was set to.
Could you make advice for real ECN broker, which use MetaTrade 5 – nome.
First of all, thank you for a very detailed and enlightening article. (and website over all)
I am not new to , but I would say that I´m new to a serious approach to this market and profession. Lately I read many of the articles / videos at LuckScout and most of the content is relevant to me. It made me look in the rear mirror to see my many mistakes from a new perspective. I intend to follow the instructions published on this website thoroughly, including demo-trading for at least three months.
This leads me to my actual question. A couple of weeks ago I opened a new demo account with a broker that appeared more serious than the ones I tried (lost money with) before.
So far everything is ok, I´m improving my hit rate and profitability. My spread sheet tells me that I might be able to x10 the initial 1000 NOK balance within 5-6 calendar weeks. (I broke it down to a daily average goal of 5% balance growth per market day.)
However, after reading this article I concluded that my current broker isn´t ECN/STP. For obvious reasons I would like to continue the simulation period with as realistic conditions as possible. I understand and respect the reason why specific traders must not be mentioned here at LuckScout so I started to google only to find that many claim they are true ECN´s, but they´re obviously not. (a few control questions in the customer chat room is all it takes to reveal the scam)
Is there any authority, or independent organisation that can be trusted when it comes to listing true ECN/STP brokerage houses?
Once again, thank you for providing us “newbies” with this educational site. Who knows, maybe one day I can contribute too.
Re scam brokers cheating on clients.
My problem is as follows and wander if other clients have experience the same and need advice me to prove my point.
My account with different brokers have been traded by others NOT ME and wiped out my deposits.
My accounts have also been wiped out of funds prior to having my account verified.
Brokers insists that i did all the trading in my account and loss all my funds (this is a lie)
Advice needed, Brokers must know who traded in my accounts.
through IP addresses or other methods etc.
So i want to know, which one is better STP or ECN broker? Can you explain about Tier-1, Liquidity Provider? Obrigado.
Our broker is refusing to pay us our deposits and profits claiming that the Liquidity Provider is refusing to allow them to do that. Could this be possible? there is well over 200 clients involved.
It depends who their liquidity provider is. If it is a market maker broker, then it can be a scam like all the other market maker brokers. First you have to find out whether they really have a liquidity provider or not which is almost impossible for you unless an insider tells you the truth.
By the way, whether they have a liquidity provider that doesn’t release the funds or they don’t have a liquidity provider…, or whatever the problem is, the broker is responsible.
Even I am also cheated by 2 local forex trader in mumbai india.. Name of those 2 cheater are [removed] age 32 told me that he was driving his car got accident. Cant do any thing..Now his mobile is switch off.. and 2nd [removed] age 22 Mumbai along with his partner [removed] 42.. not refunding my amount.
Thank you for your comment and sorry that we can’t publish their names on our site, so that they were removed.
Hi Chris, Very educating article with intelligent comments. I trade with two brokers. Both claim to be ECN. One offers 1:100 and the other 1:500 leverage. the spreads from the 1:100 broker is higher but I’ve never experienced slippage or any trading malfunction. With the other with 1:500, I get dangerous slippage once in a while but they offer better withdrawal and deposit speed and reliable customer service. My withdrawals takes less than 24 hours. But the 1:100 have less reliable customer service and withdrawals run into days. Would you say the 1:500 broker is fake? Obrigado.
The 1:500 is a market maker. They can have the ECN system at the same time but you never know what behind the scene is.
If you are making profit consistently with a broker and you never experience any problems, both in taking and closing the positions and also in withdrawal, then it is a good broker. They usually make no problems for you as long as you don’t make profit consistently.
is it hard to believe when you are saying that with the 1:100 broker you have never faced slippage. usually, one have less slippage with a market maker, because your trade does not go to the market, and the market marker does not have to wait for a rate from their liquidity provider, therefore, when you say you have no slippage with the 1:100 broker, I just think….do you know in which circumstances slippage occurs?
I really appreciate your good work keep on opening anus. I think I am interested on DT but don’t know how to go about it.
You can sign up for the course:
I’m really confused. I attend forex seminars and expos. I also trade and I’ve been consistent for a while making a few thousand of dollars from forex retail brokers monthly. So if the ones with leverage above 1:100 are paying me profits consistently, do you mean they’re still scams. I have checked online for real ecn brokers and most Google search brings out still over leverage above 1:100. I think if you can recommend for us, it will be very helpful. Obrigado.
As long as they let you make profit consistently and withdraw your money, you can keep working with them.
Sim. I using forex for side cash. So a month target if $2000 to $5000 has been working for me.
Could you please share your trading statement?
Maybe I can forward it to an email address. I can’t attach here.
Obrigado. Please email it to admin at luckscout.
you said that a broker is regulated when it is registered with a specific regulator body. i am a big fan of yours, but that is totally wrong. being registered does not mean that the broker is regulated. is only the first process, where the broker pays a fee in order to be registered meanwhile is making ready his documents in order to be regulated. this does not mean that all the registered brokers, want the regulation. so they just pay the registration fee again and again, and they create misdealing among the traders. they believe the broker is regulated but is not. is only registered. good day.
My name is Louis Malubana from South Africa. First I thank your publications about Forex brokers scams alert.
It is true that you will never make make money through forex trading. I am one of the forex scam victim. I lost thousands of dollars to these forex scams and would like others to follow this advise not to trade forex. I allow this publication to use my email address as a reference as one of the victim cheated by forex brokers.
What was the name of that broker who cheated you? Was it a Binary Options broker or Vanilla Options broker? I was once scammed by a Cyprus-based Binary Options broker.
I was scammed by BNR Options and Noble Capital House just cannot get them to answer any emails… lost 7000$…
Tricky Ways Many Forex Brokers Cheat And Steal Your Money.
As traders, we are forced to rely upon Forex brokers to be able to trade. Without them we would have no way of placing orders and no way of earning money. The trouble is that there are some bad brokers out there in the world, and likely there are more bad brokers than there are good forex brokers. You need to carefully evaluate and sort through several different brokers to find the right one sometimes.
If you have a good tip from a friend who is also in forex then this might be your golden ticket to a good broker. But yet a challenge here is that different brokers are sometimes good for different countries. Those from the US will have the hardest time finding a good broker due to the very restrictive rules placed on forex trading activities there. But anyway, let’s take a look through some of the most important parts of finding a good broker to trade with, starting with the issues that are most common among the ‘bad brokers.’
The Forex market is a decentralized area where no actual marketplace exists for the trader and where there are no “standards” in the exchange rate. Brokers offer various deals to their traders and while the investment is your decision, you must rely on your broker to make the transactions for the trade. This article helps you to distinguish swindling brokers from honest ones.
The role of Forex brokerage firms.
Not all major commercial banks have the same quoted price. Brokerage firms take all these price feeds from major commercial banks and publish the approximate average of the exchange rates into the broker platforms. These online brokerage firms opened doors to the retail market. Forex brokers act as mediator between the interbank market and the retail market, in return for a commission. Trading directly with the exchange market and avoiding the intervention of the Forex broker in the trading process is nearly impossible for individual retail traders since it requires a large amount of capital. It’s the broker who is effectively transacting the trade made by smaller speculators and investors such as hedge funds, corporations, and retail traders.
However, not all brokers are conducting the same business equally. It all depends on the business model the broker uses. Some brokers put orders directly into the market exchange, while others take the other side of the trade and ‘trade against their clients’ assuming they will lose most of the time. Some brokers offer both options to traders, and it’s the trader’s choice as to which suits his or her preference better.
Actually, few smaller less known Forex brokers contacted me this year and were highly interested to reverse trades using my MT4 trade copier/duplicator/replicator app. Of course they need that to trade against their customers. They have all the information about the trading of their customers so it is very easy for them to reverse their trades on another account.
Dealing desk vs. non-dealing desk brokers.
There are two main types of Forex brokers. The first type is called Dealing Desk brokers (DD), which are also called Market Makers and Dealers. Market Makers make money through spreads and provide liquidity to their clients. While these types of brokers often display their own quotes, they are legally obliged by national and international regulatory authorities to show the best possible price to their clients. Prices they offer may differ to the actual market prices. Although, Market Makers literally take the other side of a client’s trade to minimize risk (different dealing desk brokers have different risk management policies).
The second type of Forex broker is called the Non-Dealing Desk (NDD). NDD brokers do not take the opposite side of their client’s trade. They simply link the trader’s platform to the interbank market and may either charge very minimal commissions for trading or slightly increase the spread, or both.
NDD brokers can be Straight Through Processing broker (STP), Electronic Communication Broker (ECN), or a hybrid of STP and ECN (STP+ECN). ECN brokers offer Direct Market Access (DMA) through automated systems to allow their clients’ orders to interact with the orders of other participants in the exchange market. These market participants could be banks, hedge funds, financial institutions, retail traders, and even other brokers. Below you’ll be able to see a chart illustrating these different broker types.
Direct Market Access can be True DMA or One-Touch DMA. True DMA uses automated systems to place your trade automatically to the interbank market, while one-Touch DMA requires human intervention for your trade to get placed on the interbank market. Speed of execution could be compromised with One-Touch DMA. However, since some countries do not allow the use of True DMA due to fraud, some brokers are obliged to check every trade before placing it into the exchange market. Small brokerage firms also use One-Touch DMA to make sure they have enough funds to cover the position.
A STP broker is a hybrid model of Market Maker and ECN broker. STP brokers sometimes act as a Market Maker by using liquidity providers such as banks as their clients’ counterparty and do not allow their clients’ orders to interact with the orders of other participants in the exchange market, and other times they place clients’ orders into the exchange market. Most STP brokers generate their revenue by adding the spread to the price that they obtained from the liquidity providers.
Now that you understand more about brokerages in general we can take a look at some of the troubles you might run into with them. We as traders, after all, have to fend for our own. Some brokers are out to take advantage of foolish and unknowing traders so we want to not be one of them. Brokerage firms might look great on the outside, but once you get in and make some profit and try to withdraw your funds all the rules might change.
These are some of the ways brokers ‘game’ unsuspecting traders.
By winning the trader’s trust using very official web pages.
Many times, a dishonest broker gains a customer’s trust by being smart and targeting unaware people. Taking advantage of this trust, the broker can encourage their client to trade on margin and set stop loss orders which allows the market makers to close out trades almost at will during strong markets, at prices they have set. If the market maker does not offset the trader’s position, the loss generated when a stop loss is triggered becomes the market maker’s gain. You can see how this is not in the best interest of the trader, but rather only in the interest of the broker.
By charging extra overnight interest rates.
Brokers charge and pay disproportionate swaps based on the gap between short-term interest rates associated with currencies pairs set by central banks. This gap is not fixed; if the broker spends the swap from the customer, it will charge more than needed and if the broker pays the swap, it will pay less than needed. When the gap is small, the customer pays the swap both ways; it will not matter if one is long or short on the pair.
By engaging in spread widening.
This mostly occurs during times of high volatility. The broker may fail to allocate your position, even if it is completely updated, at the price it quotes, and saves himself by applying a wider than usual spread on the customer. Nothing can really keep the broker from imposing a wider than usual spread to earn profit from the trader. If the broker can do this, honestly, there is not much that you can do to stop him.
By encouraging over-leveraging.
One way brokers trick traders is over-leveraging. The brokers are more than happy to offer larger volumes and most traders fall for these large volumes. This is not really illegal, but it takes advantage of the traders’ psychology. Traders who get attracted by larger volumes end up benefiting the broker and harming themselves. Once again, there is nothing much that you can do to prevent this from happening except making smarter choices and trusting your instincts.
The broker’s liquidity providers may change prices pretty fast and the broker may simply have no choice than to execute your order at a slightly worse price. But some brokers use slippage for their own advantage and offer you to buy a currency pair at a slightly higher (or sell at a slightly lower) price than they could have. The difference is the profit they end up getting. It’s almost impossible to find a broker without slippage but you can try.
By boycott their own traders/clients.
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.
There was a very large lawsuit and federal suit against a particular brokerage in the United States because they actually sued some of their clients. Yes, the broker sued their own clients… and why? Because the clients had earned a profit. The broker accused them of tampering with the price feeds or some other ridiculous accusation. The SEC/CFTC (governing Forex bodies in the US) fined this broker several million dollars in the end for many illegal activities they were engaged in.
By offering clever software technology to lure traders in.
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 article, 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.
By offering good initial customer service.
Customer service and support is incredibly important for any type of business, including a Forex broker. In Forex trading, you want your broker to be able to answer all of your questions and queries. If your broker cannot respond to your messages and problems, move on. Make sure that your chosen broker has a good customer service team – if a broker does not, this will indicate that they are a cheat. If you notice any suspicious activity regarding your investments and your broker cannot (or does not even bother to) explain, then a good suggestion would be to replace him.
By stop-hunting.
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? Errado.
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 could be to hide your stop loss. It is not guaranteed to help, but at least you will be sure that your broker does not see your stop loss and have a chance to take it out through dishonest means.
By taking the role of bucket shops.
Bucket shops are fraudulent brokerage firms that “book” a client’s orders but never really execute them on an exchange. They are named such because these brokers put their clients’ phone-in orders in slips then drop them (the slips, not the clients) in a tiny bucket instead of actually executing. Without the real transactions, the client is actually betting against the bucket shop operators also known as bucketeers. This is another dangerous type of broker strategy that is both dishonest and illegal in most countries.
Distinguish swindling brokers from honest ones.
The following pointers help you to distinguish swindling brokers from honest ones. These are just some ideas on what to look for in the broker you are selecting. Some of these you will be able to research on your own and some of these are not so easy to identify. Below this list you’ll find three great website resources that can help you continue your search for the best broker for you.
The first and foremost distinction of a trustworthy broker from the fraudulent ones is the high level of security. You should not just deposit your trading capital to a broker who simply claims they’re legitimate. You should choose a broker that is registered with a regulatory agency.
Below is a list of countries with their corresponding regulatory agencies that checks the credibility of the Forex broker.
o United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
o United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
o Australia: Australian Securities and Investment Commission (ASIC)
o Switzerland : Swiss Federal Banking Commission (SFBC)
o Germany : Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
o France: Autorité des Marchés Financiers (AMF)
Forex regulatory agencies provide investors and traders with protection and security from fraud, scam, manipulation and abusive trade practices. Every brokerage firm who conducts business with the public should be registered and a member of the country’s corresponding regulatory agency. To be registered, the broker has to pass the screening done by the regulatory agency and comply with the standards and regulations. In the US, NFA performs the registration process on behalf of the CFTC. The broker must be a member of NFA before registering with the CFTC.
Broker’s financial stability.
If the broker is under-capitalized, your funds are at extreme risk. Because broker accounts are not insured, there is a very little recourse for the individual retail trader if the broker goes bankrupt.
Before opening and funding your live account, verify the prospective broker’s financial health. You have to study the company in general terms: look at how long they have been in business, what their online reviews are like, and most importantly, look at their assets in the country. This is not the easiest thing to do, however, and once again you are back to reading online reviews and researching whatever info you can find online.
Regulatory authorities assure the broker’s economic strength and integrity towards retail traders. However, not all countries have the same regulatory policies and requirements when it comes to financial registration. Smaller Forex brokers can be hard to assess and there are no very strict regulations for Forex brokers in other countries and capital requirements are not closely monitored. Brokers in major economies such US, UK, Australia and Europe have more mature system set to regulate financial companies. And even this, however, is not enough to stop some brokers from acting dishonestly. There was a broker in the United States that broke many laws and was fined several million dollars for these practices. Many traders were burned to never see their money again, even though the company was caught. It is hard for us as traders to know what is going on underneath a company’s shell.
Therefore, it is very important for any trader or investor to choose a Forex broker that based in a country where their activities are closely monitored by a regulatory agency. Traders must have a clear understanding of the regulatory body that governs their broker’s activity and be aware of their broker’s regulatory status.
The U. S. has the strictest regulation and tightest industry standards for Forex brokerage firms. Next are U. K, Australia and Hong Kong. The NFA, CFTC, and FCA contain a list of assets a brokerage firm has, and the minimum requirements each firm has to comply.
If your broker is located with any of the counties mentioned above and being regulated by their respective regulatory authorities, and strives to exceed the minimum regulation requirements that the NFA, CFTC, and FCA have set, then you’re trading with a credible and honest broker.
Trading platform reliability.
The MetaTrader trading platform is commonly used by most forex brokers, which has hundreds of custom-made indicators and templates for every trading strategy. Other brokers have more powerful custom trading platforms. Depending on the trader’s trading hardware and software characteristics, one might prefer a web-based trading platform rather than a desktop application platform such as the MT4 and MT5.
The trading platform that suits you best is critical. The reliability should be more of a concern than how the platform looks and feels. The platform should not crash or freeze during important economic news or events. Placing and closing an order should be done immediately with just one or two mouse clicks. One-click management of open trades and stop-loss, limit and other types of orders are other criteria that a trader may take into consideration.
The overall navigation of the trading platform must be user-friendly. If there are additional charting tools, they should be very easy to access and apply.
Capitalização.
A broker must comply with the minimum capitalization level required by the regulatory authority. Capitalization is indicative of the company size and has a direct relationship to the broker’s ability to stay solvent. If the broker does not publish its working capital, it’s a warning sign that could mean a lack of solvency.
As of 2010, the CFTC set the minimum capitalization required for US-based forex firms at 20 Million USD. The tightening of minimum capitalization in the US drove out Forex brokers that were too weak to acquire additional working capital. Brokers that are unable to comply moved their U. S. operations to other countries with loose regulations, or were acquired by larger firms.
The Australian Securities and Investments Commission (ASIC) had also tightened the minimum amount of capitalization requirement from 50,000 AUD to 500,000 AUD. Switzerland has set the minimum to 20 Million Swiss Francs. And Cyprus needs a broker to have a minimum capital of 1 Million USD. It’s not a surprise that more brokerage firms have moved to Australia and less-regulated countries like Cyprus.
The better capitalized a broker, the more credible relationship it can establish with their liquidity providers. This simply means they can acquire more competitive pricing from the interbank market for their firm as well as for their clients.
Broker type.
Understanding how your broker conducts business according to the model they use is very important. There are currently a few different types of broker companies to trade with. Dealing desk and Non-dealing desk brokers conduct business oppositely, but no type of broker is better than the other because it all depends on your trading strategy and the type of trader you are.
It’s up to you to choose whether you would rather have wider spreads and no commissions per trade, or tighter spreads but pay commissions. Generally, scalpers and day traders prefer tighter spreads because the market needs less ground to cover the transaction costs. Position traders and longer term swing traders prefer to have wider spreads and pay no commissions since spreads tend to be insignificant over a longer period of time.
Suporte ao cliente.
Customer service and support is incredibly important for any type of business, and Forex brokers are not exempted. Brokers are not perfect, and you should choose a broker that could easily be contacted when problems occur and who responds quickly to your needs.
As you probably know, the Forex market is open 24-hours a day, so ideally, your broker should offer client support at any time. Live chat and phone support is the best medium to contact the help desk rather than email. Even though your broker’s website may have already explained things clearly, representatives should be knowledgeable and able to answer all of your questions in a timely manner.
While trading, you may experience technical problems regarding your platform, trade orders, and other broker-related concerns. You may have just opened a big position and then your internet went down. You may need to resolve this quickly by calling to your broker for help.
The way they respond to your concerns can be a key in gauging the credibility of your broker. Brokers may be kind and accommodating during the process of opening your live account, but have very poor ‘after sales’ support. If this it the case for you then you may want to research another broker.
Transaction costs and commission structures.
The Forex market has many unique features that many brokers use to entice traders to open a live account with them. Some promise no regulatory fees and exchange fees, others present no data fees, and most common to all, no commissions. However, no matter what type of Forex trader you are, you are always subjected to transaction cost.
Every time you enter a trade, you are always required to pay for either the price spread or a commission. Some brokers just charge the spread, others charge commissions per transaction made, while other brokers charge you both.
Commissions included in the spread.
Brokers who don’t charge separate commissions make money through the spread. The lower the spread, the greater the hypothetical profit a trader can make. Different brokers charge different number of spread pips. However, paying a 10 pip spread on major currency pairs is a sign that there is something odd with the broker. Most brokers present the lowest spread they can offer because traders have a higher chance of profiting with lower spreads.
You may choose the broker with the most affordable and cheapest spread. However, you have to balance broker reliability and low transaction costs. Choosing the broker with the lowest spread is important, but it should not override the most important factors in choosing a broker. A competitive spread is useless if the other factors are poor.
Depending on the broker and account type they offer, there are three commission structures used by brokers:
Variable Spread Fixed Spread Commission charge based on a percentage of the spread.
With the variable spread , the spread may be as low as 0 pips or as high as 3 pips on most major currency pairs. Spread also varies depending on the financial instrument that you trade and volatility of the market. Most brokers charge a 2-pip spread in a less volatile market. However, if the volatility increases, the spread may also increase, which means higher transaction cost for variable spread accounts. Also, spreads between different currency pairs may change as the liquidity level of that certain currency pair changes.
Contrary to Variable Spread, you know exactly how much spread you’re charge in every trade you open with a Fixed Spread account. Knowing how much spread your broker charges is very important because entering a position at your desired price does not guarantee that you’ll get that price. The price you’ll get is the price when the brokerage receives your order plus the spread.
Every time you enter a trade, you will always start with a negative profit even if the price moved in the positive direction. The price has to change enough in order to cover the trading cost, the spread.
Some forex brokers will publish their spreads live on their website. Here is an example from one broker called FinFX.
Make sure to research with a demo account the difference in spreads between an ECN account (like the spreads show here) and a standard account . If you are going to be trading with a standard account, the spreads will be larger.
Commissions charged per transaction made.
Most brokers who offer the least spread charge the transaction cost on every executed trade through commissions. Commissions are either fixed or variable. As the name implies, a fixed commission charges the same transaction cost regardless of the trade volume and size. For example, your broker might charge you with $0.25 for each executed trade.
A variable commission is most common for brokers. Transaction cost is calculated based on the trade volume and size that you executed. Generally, the cost is calculated from a fixed dollar value per million. For example, your broker might charge you a fee of $10 per $1,000,000 of a currency transaction that you bought or sold.
Other transaction costs.
Trades held overnight are subjected to overnight rollover or interest fees. Every currency pair that you trade has its own overnight interest rate. Overnight interest rates are determined at the Interbank level, not by the broker, and it varies between 1.5 % and 6%. This trading cost is calculated based on the leverage, which means the higher the leverage a trader uses, the higher the overnight financing cost.
Rollover fees on currency pairs depend on the difference between the interest rates of the two countries whose currencies are paired. For example, if the trader opened a long position on the GBP/USD, the rollover fee would be the difference between the interest rates of UK and US.
If UK’s interest rate is 5% and US is 3.5%, the trader would receive a payment of 1.5% on his buy position because he was buying the currency from a country with higher interest rate. If he was shorting the pair, then he would be charged with 1.5% of his position.
Some brokers apply inactivity fees if you do not make any transactions within a set period of time. There are some brokers that require a minimum amount of trading activity that must be met each month, quarter, of a year.
A very volatile market condition and lack of liquidity can force a broker to apply a slippage on the currency price. This occurs when a position is executed away from the average spread. This usually happens during major new releases because of increased market volatility.
Some brokers protect their clients from slippage by effectively handling news releases, others do not. Fixed spreads may protect you from this unwanted cost. Although fixed spreads are slightly higher than the average spread, your trades will be filled at the desired price even if the market volatility increases.
Spread Manipulation and Stop Hunting.
There are certain brokers that cheat their clients by manipulating the bid and ask spread. Typical spreads of major currency pairs among regulated brokers on normal market conditions ranges from 1 – 3 pips, but may reach as high as 6 pips during highly volatile market. Scammers would have spreads around 4 to 8 pips on major currency pairs on normal market conditions, and may reach as high as 10 pips or more during high volatility.
Spreads will increase naturally during high-impact news events, and especially when market volume is low (end of day trading times for example).
Another way that fraudulent brokers cheat their clients is through stop hunting. Brokers know where their clients place their stops. Sometimes, dishonest brokers make a run for those stops, closing out their clients’ position. Others may even close their client’s position at the client’s stop loss price even if the market did not hit that price.
Suppose you opened a long position at 1.2340 and you set a 20-pip stop loss at 1.2320, which was 10 pips below an obvious double bottom. Unfortunately, the trade initially went against you and almost hit your stop loss price. However, your position was closed, but the market did not even touch your exact stop loss price 1.2320. Then the market begins to take off to your desired direction.
There are still brokers that claim to be regulated but practice spread manipulation and stop hunting, especially during times of high volatility. It’s very important to verify the membership status of your broker to the corresponding regulatory agency as well as read reviews from real traders that have been with the broker.
The speed at which your orders get filled is very important and it is mandatory that brokers should fill orders with the best possible price. Under normal market conditions (no important news releases or surprise events, normal liquidity, and normal volatility) and given that you have a stable and fast internet connection, there is no reason that your broker should not fill your orders with the bid price (offered price plus the spread) that you see as you click the “buy” or “sell” button. Your orders should be executed at that price, or within micro-pips of the price.
Depósito e retirada.
Reputable Forex brokers offer a hassle-free method to deposit funds and withdraw earnings. Whatever methods they use, brokers have no reason to deny withdrawal of your funds and profits because they only hold your funds to facilitate trading. Note: the amount of paperwork required by brokers has increased much in recent years to protect against money laundering and other illegal practices. Some brokers will require more paperwork than others, depending especially on the country they are in.
Account types based on lot size traded.
Almost all brokers offer two or more account types, which depends on the size of lots traded. The most common type of accounts are micro-accounts, mini-accounts, and standard accounts. The micro and mini-account allows you to trade with a very low minimum initial capital, while the standard account requires a higher minimum capital. Minimum capital for each account type varies from one broker to another.
New forex traders tend to choose brokers with higher leverages. Although higher leverage can lead to bigger profits, it also magnifies your losses in exactly the same way as your gains. A relatively small movement against your position can result to an immediate and large loss which can be greater than your initial investment capital. Traders who get attracted by high leverage end up benefiting the broker and harming themselves.
Margin call policies.
If the market moves against your position, margin levels are increased and you may be called upon to deposit additional funds into your account to maintain your position. If you failed to comply with your broker’s request within the prescribed time, your broker may close out your position and you may be liable to pay any further losses.
You should be knowledgeable about you broker’s margin call policy. Some brokers follow the First In First Out (FIFO) method to close out trades when the margin requirements are not met within the prescribed time. Others follow the Last In First Out (LIFO) procedure, and some brokers simply close all the trades.
Reputação.
The final aspect in choosing a forex broker is reputation. Only a few brokers have well deserved reputations and are loved by their clients, while some brokers are despised by many. No broker is 100% perfect, but how they handle certain market conditions helps establish their reputation.
Disreputable brokers often use high spreads and slippage to prevent huge losses. Others cancel the trade if it turns against the broker. 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, dishonest brokers do whatever they can do to stop you from gaining more profits through them.
Before investing with a specific broker, do a research on the broker’s reputation on popular Forex websites and check it on the regulatory agency’s website, like the SEC in the US. The only way to protect your investments and money is to keep and an open mind and make smart decisions. You may join up with a bad broker from time to time, but just try and get your money back if they are doing underhanded things and research better the next time by visiting sites like the broke review page of FPA: Forexpeacearmy/public/forex_broker_reviews.
But do not just stop with this one site. Research and read all that you can about all the brokers you researching. Try to find out the truth about them and when you do select a broker make sure you start with a small deposit at first. You may even try to withdraw profits on the account first before deciding to keep more money with them. A broker will always be tested at the point of withdrawing profits.
How can we choose the right broker to trade with?
Contrary to the beliefs of most losing traders, Forex brokers are not designed to make retail traders lose money. Forex brokers want to do business with you, and not to lose your trading business. Brokers want their clients to keep trading with them so that the broker earns money on every clients’ transações. If you lose all your money in trading, they too will lose clients. But then again, this is not true of all brokers.
Although most brokers that are regulated by financial authorities conduct business ethically, some brokers (usually unregulated) only wants your money rather than seeing you succeed in the trading business. As a general rule, a broker will only help you when your interests are aligned with theirs. A broker who contacts you many times in order to convince you to deposit money or open an account with them, is a sign that the broker only wants your money, not to help you succeed in your trading career.
When choosing a broker, ease in deposit/withdrawal, leverage, spreads, and clever software technologies are not important considerations since they are most likely used for marketing purposes. A good spread and leverage, ease in deposit/withdrawal, and unique trading software technologies are useless if the other important factors are poor.
The best criteria are the size of the company (financial stability), speed of their platform and as well as their credibility and honesty. Also, security of your funds and as well as the assurance that you are in good hands are the most important considerations.
One of the best places to start when looking for a good broker is a review site like ForexPeaceArmy. They have some great reviews here on this site from traders just like you.
Use ForexPeaceArmy to read reviews on the brokers that you are researching.
Additional websites you can call upon to research and find the best broker for your trading business.
Here are a couple of extra websites that can help you with your search:
xe/currencytrading/questions. php – The 15 questions at the end of this page are pure gold and are worth asking your potential brokers. You can find some of the answers online with their websites but otherwise you can get on with their live support or call them on the phone to ask these questions. Make sure that you get solid answers, not just wishy-washy ones.
And this one really looks very useful. Broker Comparison Guide should really help you with your decision when choosing a broker.
What you should take away from this.
Trading directly with the exchange market and avoiding the intervention of the Forex broker on the trading process is nearly impossible for retail traders. Brokers act as mediator between the interbank market and retail market, in return for a commission. Non-dealing desk brokers put orders directly into the exchange market, while dealing desk brokers take the other side of the client’s trade. These two major categories of brokers conduct business oppositely, but no type of broker is better than the other because it all depend on your trading strategy and type of trader you are.
Trading with the right broker is very critical to trading success. Many brokers help their clients succeed, while some brokers are setup to make traders fail. The choice of broker you make will influence your ability to make profits month by month. Make sure that you trade with the broker that you prefer the most. Giving your time and effort into investigating the factors outlined above can save you from much heartache and grief. No broker is perfect for every trader, but by considering the key factors on choosing the right broker, the chances of your trading success can increase substantially.
Do you have a good broker? Share it here if you think that others would benefit from it. Likewise, if you’ve had a truly terrible experience, go ahead and share it here to warn others. We don’t need to badmouth and brokers here, but if you have any words of wisdom, please share them so that we all can learn.
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Sobre o autor.
Primeiro eu sou pai, marido e depois o autor do livro "Como começar seu próprio serviço de sinais de Forex". Eu também sou um comerciante de Forex, um programador, um empreendedor e o fundador do e-codeer Forex blog. Criei duas das copiadoras comerciais mais populares e outras ferramentas de negociação para MT4 que já são usadas em todo o mundo por centenas de comerciantes de moeda.
19 Comentários.
As usual, very comprehensive and educational article that every new trader should read. Having been trading for quite a few years now, I have seen some very suspicious activities with various brokers, including some of the better known ones. They do seem to have got their act together now and govt’s are regulating them a lot tighter these days. I do feel sorry for my US trading buddies though as their govt treats them all like little kids, with all their restrictions in place.
One thing I would suggest, is don’t put all your funds with one broker. Just too risky for my liking. For example, if you $60K to trade with, open three different accounts with $20K in each and then use the LTC to assist with your trading. Stick with the more popular better known brokers that have been around for a few years also.
Not sure about your overnight rollover interest calculation, as I always seem to get charged more than I earn when trading the same pair in opposite directions with the same position size. I think it is a money spinner for brokers.
Thanks for the article Rimantas.
Jim, I am glad you like it. Definitely U. S. has very bug restrictions for brokers. That’s why many of my U. S. traders go to brokers in Europe such as FinFX or Sensus Capital.
Thank you for your comment and for reading.
Regards, Rimantas Petrauskas.
Very comprehensive article.
One one of my main issues with FOREX brokers is with overnight interest rates. There is not enough transparence in their calculation. Moreover, you end up paying higher interest to hold a spot pair overnight than an equivalent futures contract. That’s weird and expensive!
Overall, I prefer futures to spot rates.
Robert, glad you like this information. Interest rates can be mysterious for sure. Eu concordo com você.
Another good article Rimantas.
Brokers play all sorts of tricks. Here’s another.
If you are getting close to a margin call they will delay processing your deposit to cover the call. This is a nasty trick, I experienced it before my own eyes. They waited for my margin call and stop out, then appx 3-4 seconds later my funds went in. Needless to say I no longer trade this way.
I also used to be quite common for brokers to change your leverage during high volutiliy to cause margin calls.
Do you ever whatch the market moved against you immediately after placing your trade? Meanwhile all other pricing does not make the same move. Hmmmm.
I actually experienced a broker switch off my trading option so I couldn’t close my trades while the market moved against me, this happened over about a six hour period, I phoned them they wouldn’t answer, I emailed and no answer. These were silver trades approx 9 lots, so it wasn’t a micro position. Anyway I took screen shots and evidence, took them to Finance Ombudsman and ASIC and got my money back.
Another closed my oil positions when I was too profitable and said I couldn’t trade with them any more.
So many tricks, but I still trade. I think I enjoy catching these guys out.
Conway, those are golden stories. I really love reading them and it is so good to learn about them. The one with oil positions is the funniest. You can say you are doing a great job if the broker tells you to leave them 🙂
Keep up the good work and thanks for sharing.
That is a great snippet of news about broker tricks.. Can you let us know which Broker tricked you which allowed you to get ASIC to help as I have also been relieved of all my funds by a broker in AU and would be interested in knowing who did this to you?
Although it would be easy for me to name the 2 brokers who tried to scam me, it would serve no purpose in helping you in your situation, indeed you could even be involved in broking yourself and looking to getting your own back on me for naming fraudulent services.
If you have actually encountered a problem with a broker which you think is carrying out fraudulent practices, you need evidence by way of screen shots and statements and any other hard copy details which clearly show corrupt activity. Your evidence must in most cases condradict the brokers P. D.S. and documents provided by them. If you can’t provide conclusive evidence, the Finace Ombudsman Service or ASIC will not take on your case. Hearsay (verbal comment) is not evidence.
They usually take 30 days to assign you a case officer, it is not a fast process, but if you have been done wrong like I had, you stad firm and follow through providing logical honest replies to all their answers with evidence.
When you do make a complaint it gets recorded against the broker, so they want to settle as well. Usually as soon as a case officer gets involved, the broker will want to discuss the matter with you and settle without 3rd party involvement .
From my experience today it’s more difficult to catch out brokers now, as their corruption isn’t as obvious. I was fortunate in one case to have the details directly on the screen in front of me. I took screen shots showing trading disabled on one chart but activ on others, showing all my open positions on the chart and showing live activity taking place, then backed up with time captured statements. I even took a copy of their P. D.S. at that point in time, as they can change and update this at any stage to show they are allowed to scam you how they did.
As a general rule Australian businesses an companies ar quite honest on a global scale, but given tough economic times they will explore and push their boundaries, and given that FX is largely unregulated, their limits are quite open, which leaves you with ‘sign up’ documents and ASIC and F. O.S.
F. O.S. has a good online entry service which can help you decide whether to go ahead or not: fos. au/resolving-disputes/before-you-lodge-a-dispute/
Conway, thank you for this invaluable information. Garry, hope this will help you!
Here is a snippet from one PDS, which are even more full of catches to clear the broker of any wrong doing while ripping you off.
TF Global may at an time without Notice to the Client suspend, withdraw or deny access to the Online Platform for any reason including but not limited to security, quality of service, failure by Client to pay and amount when due or breach by the Client of any provision of this Agreement.
Note: ‘Any Reason’ which is the ‘tool’ used for corruption, while the focus of the statement is on ‘security. ‘Any Reason’ will also include profit.
PDS are full of these and I could talk about them all day.
Wonderful addition. Thank you, Conway.
Very good article. Bem feito. I am ashamed to say that I was scammed out of around 25,000 UK Pounds by Netotrade. I had deposited funds in a new account and had started to talk with the account manager Alan Levine. I was in the process of moving from the UK to China and couldn’t monitor the account for three days. During that time the ‘manager’ put a Buy trade on Gold just at the time that it was going down plus two other Forex Pairs and the FTSE. By the time that I logged on in China I had most of my account wiped out. I tried to save it but couldn’t. A few days later I logged on to $00.00. Wiped out.
I will never forget that. I reported it to the police, but nothing has happened so far. Leaves a bad taste in your mouth.
John, that is quite a story. I never though that this could happen when an account manager working for the broker is trading your account. Thanks for sharing and hope your future investments will be ma success.
Just come across this information. Excellent advice, thank you.
Obrigado. Glad you like it.
I have a story. Recently was trading with MT4 app on my iPhone. My strategy was to stick to one currency pair the eurusd. About 2 months into trading I opened some positions in other currency pairs, following this, the MT4 app displayed the negative value of trades as a positive in the free margin.
This malfunction was only on the app and did not appear on the desktop MT4.
I contacted meta quotes & they asked me for screen shots but I had not taken any.
In all the confusion I would have lost about 10 grand. I think there is a problem with the trade screen, when I log in to the trade screen it is blank, & then as the + sign emerge in the top right corner & the numbers from all your trades appear it still displays the negative amount as a positive in the free margin.
I have now abandoned the account & changed brokers.
The broker is Tallinex but because the malfunction was only on my app it would seem meta quotes are responsible.
Great article, & I enjoyed reading all the posts.
great story. Obrigado por compartilhar. It sure sounds like a MT4 malfunction. Sorry to hear you had such a big financial loss. It’s a shame these things can happen, but it’s the reality as we see.
Subject matter of this web page is usually great and also appreciative.
I have personally witnessed brokers trading against clients by using order delays. I have also seen brokers delay withdrawal requests past 1 business day. This business is quite something.
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Rimantas Petrauskas é o autor, comerciante, programador, empresário, pai e marido de Forex. Ele criou software para troca de moeda e entrega de sinal desde 2009 e criou centenas de robôs comerciais para seus clientes. Ele acredita firmemente que, com uma Atitude Mental Positiva, podemos alcançar qualquer objetivo.
Alan's Forex Blog.
You’ve probably heard of Forex brokers ripping off their clients by using various dirty tricks. Some of the most common ones are: stop hunting, requoting, widening the spread to some ridiculous number, software disconnects, lagging/fraudulent price quotes, unfilled orders, and account banning. Yes, they will politely (sometimes not so politely) tell you to bugger off if you’re consistently profitable.
I bet you’d like to know what tools brokers use to accomplish their nefarious deeds. Well, I’ve got just the thing for you! Check out the screenshots below:
Yep, your eyes are not deceiving you. They actually have very specialized and advanced software that they use on their trading servers to make sure that YOU end up losing. In most cases the majority of these so called brokers don’t even deserve that title. Technically speaking a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and trades for his or her own account.
Someone asked on MetaQuotes forum “What is the Virtual Dealer plugin used for? Many pepople want to know.” and guess what happened:
Lovely, isn’t it? I very much doubt that only MetaTrader4 based brokers have this type of software installed on their trade server. I often hear brokers touting that they have “no dealing desk” and whatnot, but to me this is just exploiting the vagueness of language. When they say that they have no dealing desk they really mean it, BUT what they really mean is that they have no HUMAN operated dealing desk, and instead they use software dealing desk applications such as the one you see in the screenshots here.
Experienced trades already know the games dealing desk forex brokers play so this post is mainly geared towards beginning traders. Having said that my advice is this:.
1) Stick to only so called “reputable” corretores. Do your research before you open an account with any broker. It may also be helpful to ask them if they use virtual dealing desk software. Ask them to send you a written statement saying that they do not. If they refuse or do not answer then simply move on and DO NOT open an account with them.
2) DO NOT open up a large account with dealing desk brokers. I’ve come to learn that the majority of brokers have software routines that specifically flag large accounts. They will target you and incrementally erode your account balance using their dirty tricks.
3 ) If you can avoid this stay away from trading before/during/or immediately after important news releases.
4) Take money out of your brokerage account on a regular basis!
5) Learn learn and learn some more. Practice in a demo account until you are consistently profitable. When you are then I suggest you look to open an account with an ECN broker.
That about does it for this post. If you wish to discuss this topic you can either visit the Forex Nirvana forum (my own forum) or the forex factory forum thread.
Forex Nirvana Forum:
Thread on the Forex Factory Forum:
Happy trading everyone, and I hope you don’t end up being victimized. If you do please see me with your proof/evidence and I will gladly publish it on my blogs.
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what do you think about OANDA?
are you have bad experience or heard something wrong with this broker??
I like ECN broker but I don’t like their platform and big deposit. maybe if I have more money I think I will choose ECN like interactive brokers or MB trading.
I heard MB trading will make meta trader but if MBT use metatrader i afraid meta is easy to give a plugin or software than other platform.
very informative and valuable blog. Thank you for sharing this information with us.
Thanks..glad you like my blog.
Im a newbie. Thank you so much for the heads up. Now, could you or someone tell me what a “ECN Broker” and the difference between a broker and market maker. I know what a stock market maker is but what does “ECN” stand for? I’ve also notice people say “don’t trust any broker even ECN broker. just keep on eye of them ECN or not” Ok, Now tell me how to “keep an eye on them” and how do you tell if there is any “funny happenings”? How does one know if they have been cheated? I demoed an account full time at FXCM for 7 months. I would average about 20% per month, so I decided Before trading a live account (mini) I would ask the online support if the demo account is exactly the same as the live account. They stated “there is no difference”. I started trading live and that is when the bank credit crisis happened and I got wiped out in less than a month. I didnt run stops but would hedge in the opposite direction.
I have never felt so defeated in my entire life.
Then I read articles and threads like yours Alan, and I wonder if I was cheated? Or was it just a bad time to get in. And it doesnt make sence to me. Why would a broker play games to wipe you out (sure a lot of money upfront), when he could probably make a lot more in the long run if the trader is allowed to keep buying and selling. And if successfull, the trader will be increasing the number of trades as his account builds up. I wrote the NFA in regards to this subject and they told me to call in to a certain department.
****So back to the important question….How does one detect foul play on the part of the broker?”***
How rude of me, I forgot to sign off and say “Thanks for your input people”. Ok…here I go…
Thanks everyone for the input.
(knock down but not out)
Terry, I can answer your questions. “ECN” stands for “electronic communications network”. You can find out all about ECNs on the Internet by searching.
As far as the “demo account,” you were misinformed, it is not exactly the same as a real account. Here is why: the demo account recognizes your “fake trade” by matching it up with a real trade that actually occurs in real life. Thus, you probably noticed that you had very fast executions of your “demo” trades and that your real-life trades were not as instant. That’s because in real life, whoever is buying can choose not to buy from you, and whoever is selling can choose not to sell to you. This is especially true if your orders are “market orders”, a market order on the demo account will almost always be filled instantly at the best price but in real life that doesn’t always happen. In itself all of this is not “illegal” because there is no regulatory agency involved to watch the people who are trading currencies.
That being said, there are reputable brokers out there, not everyone is a crook! Sorry you got wiped out but take heart, many other people have been wiped out for much much more than you lost and have bounced back and become successful. I would suggest that you practice on the demo account until you are extremely competent and try again. good luck.
Someone asked the question “WHY. would the brokers want to do this and why trade against me”
Well here’s a simple answer…..
Let’s say you open a $5000.00 account today. You transfer the funds to the Broker of choice.
You have effectively seen your money leave your posession and handed the posession of the money over to the Broker….
You wave goodbye to your cash, as it turns the corner and waves goodbye to you, and it rounds the corner…. never to be seen again.
See, at that point when you handed your cash over, you exchanged it for nothing more than digital data on a computer screen. Your broker supposedly makes this as good as cash true?
But it isn’t. See, all they need to do now is make sure that those digits on the screen gradually go to zero and they just made $5000.00 playing a very complicated electronic game with you.
A game that is computer enhanced to make you seem like you are winning and losing, but eventually wipes you out.
And once wiped out, you will never complain because you did it to yourself right?
I’ve been trading for years, live trading. Dinheiro real. I’ve blown out two accounts of $5000.00 and one for $1000 total: $11k.
One of my accounts in 3 weeks I built up to $8700.00, with quite a winning streak.
Then something strange started happening… buy stops and sell stops that i had set were getting hit when the price was nowhere near….
Many things…. on one occasion i had a good trade set up, and the platform didn’t execute the trade until 40 pips later, at the bottom of the trend, which then reversed and wiped me out. In other words it opened me up with a built-in 40 pip loss.
FXCM told me they didn’t guarantee execution.
..So I’m a broker and let’s say I take in $1,000,000 in new deposits today and new clients.
Well, statistically we ALL know that 98% of all traders blow out and lose every penny in their accounts true? Even experiences ones that have read every book, been to ever siminar, bought every EA, programmed EA’s, used every system, every discipline, etc… like me.
So knowing that 98% of my clients will eventually lose all their money and never have a need to ask for a withdrawal….
…WHY then would I place 98% of my clients money in the market to be lost?
Why don’t I just subsidize their trading until their accounts are down to ZERO??
In other words, i can subsidize your account, and never place your money in the market… I just keep it all.
…all the while you think you are trading with real money in your account….
..but all i need to do as a broker is subsidize your account with digital numbers on your computer screen.
Now if by some chance you happen to be in the 2% that make money… only 10% of those will actually withdraw money.
All i need to do is take from my pile of money here and pay you no problem.
Anyhow, there you go.
I read all those posts and thank you so much guys for enlighting the public.
I have a question and saw that is was asked a couple of times but never answered…
So, is OANDA good broker?
Yeah normaldude that doesn’t surprise me. Trust me when I say that liteforex is not the only broker that does this. I’ve had up to 10 requotes with IBFX for example, 5 with FXDD.
I wonder about the video though, did that person try to open a position during a time of high volatility (like before/after NFP, or any other important news release)??
23:43 GMT? no news release 😉
I must’ve missed that part of the video where it showed the server time.
Once again, another reason why everyone should be trading with an ECN broker once they’re consistently profitable.
Infinit: Sorry I missed your question. From what I hear Oanda is one of the better dealing desk brokers out there. They’re ok I guess if you’re a small trader and are still learning, but once you become a “pro” I would strongly suggest you jump on to an ECN broker. See my “Forex Brokers” link at the top for some good ones that I recommend.
I realize that some ECN’s have the capacity to ‘bridge’ from their trading platform to Metatrader. But without using a bridge method, is it possible to run Metatrader on a demo account (in order to use various MT-based indicators) yet when it comes time to make the trade the trade is carried out on the ECN’s platforms? In other words, having the ECN software running for the trading but using Metatrader on a demo account for the setups. Or would this approach be ineffective due to demo account cheating on the part of non-ECN brokers?
Of course you can Abu. That’s what I’m doing at the moment. As long as you don’t execute any trades on the MT4 broker’s account then technically you don’t expose them to risk so I see no reason for them to muck around with your positions. Most brokers try to give you the best demo experience anyways in order to entire you into opening a live account.
The only disadvantage to doing things this way is the lag between identifying a possible trade setup on the MT4 platform and opening the position on the ECN platform. Typically though this should not be a problem unless you’re a scalper.
Also I’m thinking the difference in price feed may cause slight differences in the performance of your particular indicator/EA depending on what demo MT4 broker you use – some filter their price feed! So keep this in mind and basically try many demo MT4 brokers until you find one that works best.
Hope this helps you out Abu.
I’m on my way out of Alpari due to the very very high levels of re-quoting. This is my second time with them due to the lack of UK based brokers. I’m UK based and for ease of money movement I use UK brokers. Even if you have a small account you will lose out with them. I had a tiny trade going on and by the time I got out of it, I’d lost 75% of its value due to invalid prices. It wasn’t even moving that fast. (btw I trade 1M. I’ve noticed that in the last month or so their level of re-quoting has risen dramatically. They also have a problem running some templates/indicators that work perfectly well (maybe too well) on the demo but when you come to the live account they freeze and you can’t even move the chart. I’ve just lost a day and a half over this issue and have had enough. I also know from a loss experience, they will do anything they can to make money off your loss – never forget, they’re in it against you – it’s a money making business!
Of course Pat! All dealing desk broker do NOT have your best interest at heart. They do not want you to win the MAJORITY of the time.
I too used to trade with Alpari UK but have long since dumped them. Now in your case the problem is that there aren’t any ECN brokers offering the MT4 platform that are UK based.
Have you looked into FXCM perhaps? I do know they have a UK branch. Also have you looked into a non-MT4 platform/broker such as Dukascopy? The problem with Dukascopy though is that the minimum account size is rather large for most people. They’re not UK based (Switzerland) but being within the EU area may make it easy for you to move money in/out.
There are two US BASED ECN brokers that offer the MT4 platform, but I’m not sure this is what you’re looking for (ease of money movement as you said).
i alrady have an alpari account and i loose $3500 by this type of cheating please gide me to get a genune forex broker please specify some one of them, it wii helpfull to me.
Desculpe ouvir isso. Hmm, well, what you want in order to prevent this from happening again is to trade with a broker that has NO DEALING DESK. Preferrably a good ECN broker would be best, but you can get by with a broker that uses STP (which means they just forward your position to their liquidity provider hence not having a financial incentive and interest to mess around with your positions by trading against you)
See the Forex Brokers link at the top of this blog for a list of some broker that I think you should look into.
Some may disagree with me but I think the 3 main ECN brokers worth looking into are:
Dukascopy just lowered their minimum deposit to $5000, so I’d recommend you try them first, and if you don’t like them for whatever reason, go for ATC Brokers.
Do you need MT4 support? If so skip Dukascopy for now.
Espero que isto ajude.
Thanks for your site pointing out my clearly stand about forex brokers cheat against traders. before visiting your site I have lost some reasonable amount although i could not trace the problem with my method. I am hoping to build up my little fund with Alpari before switching over to ECN .
You’re welcome Charles. To be fair to the brokers though not all of them use this plugin or are as bad as some of us traders say. BUT let’s not forget that ALL dealing desk brokers have a financial interest to see you LOSE because they take the OPPOSITE side of your trade.
And man do they profit from inexperienced traders!
Yes good idea. Find yourself a good ECN/No dealing desk broker and get your “pip on”..lol.
After reading all traders comments and beginners there should be a law set against all those brokers and brokerage companies not executing the trading accounts in the most honest way they should be banned closed as one, next jailed them too. They are thieves. My wish is this should change and done we traders need to unite and form a worldwide stand to this. bottom line trades need to be clean and pure.
I hear you Stanley. Bear in mind that not all broker are like this. But what often ends up happening is that the lure of money is too great and thus most brokers adopt a “trading desk” trading structure, which means they trade against you. So it would be best to stay away from these brokers and trade with ECN/STP brokers only.
Please can you tell me which broker/s you have had a good experience with trading an ea on a live account.
FXDD and MB Trading 🙂
A fair(!) market should be a zero-sum game, right? So how can a OTC broker make a net profit on the long run without playing unfair? I think he can’t because of it’s business model.
So that’s why I think you should use a broker with a intermediator function like UBS, JP Morgan or Deutsche Bank. I hope this makes sense.
Yes Jim, that would be ideal. A broker should make profit on the volume you trade, and this profit would be paid for by their liquidity provider(s) – ie the bank(s) they deal with for this liquidity. That’s why ideally you want to be trading with a broker that uses the STP (straight trough processing) business model, which means they forward your position directly their upstream liquidity provider(s) – ie once again their bank(s).
Altenatively you can trade with a ECN broker essentially acts like a sort of equivalent of a stock exchange where a bunch of traders come to trade with each other. ECN and STP are terms often confused by traders and often even brokers. Often you hear STP brokers describe themselves as ECN brokers, when in fact they are not. ECNs are fewer in numbers and not typically have much higher minimum deposit requirements.
Example of ECN brokers include: Dukascopy, FXAll, Currenex, MB Trading.
Typically with ECN brokers you pay a commission per round lot turn. Although if you calculate it often this commission is lower than what you would otherwise pay at dealing desk brokers in pips.
Also some of these ECN brokers have rather huge requirements for you to trade on their platform but if you do then rest assured that you’re getting access to some massive amounts of liquidity and the spreads will be very very tight.
As a experienced trader in other products but a relative newby to forex I’ve found out that even with some Googling it’s pretty hard to get objective & useful (read: noncommercial) background info about the forex market, apart from the forums which are full of blabla most of the times.
This observation made me a bit reserved if it’s wise to continue the development of an custom EA and start trading with real money on the table. Regarding those ECN brokers, after checking their websites I see only MB Trading and Dukascopy support MT4 (the last one only in beta mode). Do you have experiences with MT4 via MB Trading?
Obrigado por compartilhar.
Yes, actually I have a live account with them. I haven’t’ had any problems on their live platform. The only downside is that MB Trading is a US based broker and I’m afraid eventually the CFTC will force them to adopt the new max 50:1 leverage. I use this account to test EAs and I’m afraid 50:1 leverage is not enough for me to safely test EAs with a small starting balance.
I hope Dukascopy come out with their MT4 platform offering soon, and I also hope the minimum deposit won’t be ridiculously high – $1000 sound about right for me. But, we shall see.
I worked with a broker in the US and was not satisfied.
My account was connected to a trading system developed in Europe, and due to misunderstanding, I lost thousands of dollars.
I prefer Developing my own programs.
Thanks for great advice bro ^^
Here is my case n am a noob here but ….did digots of info.
Im not sure if my case consider as Stop Hunting..
Case: When I install my 2nd MT4 Platform(different broker) into my laptop, this thing happen when i trade – Double Execution!
At d beginning of 2nd trade when SELL, it did happen with different leverage, i go for 0:10 but d another one seems to be 0:20. I thought it was my technical faults at first but it already happened a few times now. It happened only when d trend is against me. Though they had calculated a gd outcome and activates it when Im on d wrong side.
If i had set wrongly on Pending mode, won’t it just activate once and not all d time? cos i always execute Instant Execution and not Pending.
Perhaps i should video d process down whenever i trade.
Hope bro you may enlighten me in this case, Thank you.
Man do I have some proof for you and the world; although I will probably be posting it on my own site, this is only because I am purposefully targeting them and want to be sure no one else goes through what we went through when we tried them out.
You know, the craziest thing about forex (to me anyway); is that 9 times out of 10 I can beat the hell out of calling the currencies (I mean who can’t); but this is hard enough to do, but having to beat the broker/market maker (who – and many don’t know this – IT IS IN FACT AGAINST THE LAW FOR THEM TO TRADE AGAINST YOU – then again maybe they do know this – but my run own sentence is headed for one hell of a rampage that you will be seeing very soon.
I plan on suing the ever living hell out of them; on top of any sanctions the two NFA and CFFA (or . ever it was/is) that regulates them, so I want to be very careful in how I do this;;;;;; MAS.
Ever since I have been trading, I have had Spector Pro running – a nice little recordign program that has been capturing the cheating bastards (IMO – hell – as seen on VIDEO) – but make no mistake about it; they not only cheat, they have no quams about taking it as far and as long and as dirty as they can go.
I found a way to beat every cheat but this one.
When and when not they turn on an applet that will reverse the results – which in turn – has you sitting them busting your but for them. Seriously, this is my latest one and last night I captured about a 15 hours worth of trades – and have the evidence to bury them. It’s is going to smell so bad you will have to thrown away your computer.
It’s plain and clear as day and is amazing. Talk about class action suit – here it comes – and apparently I may have to lead the charge (unless someone else has it going).
I figure this can be Fed, since it’s wire fraud; which eliminates arbitration I believe.
We will see and good luck with your site.
PS> If none of this makes any sense then it is because I have been up for two days – just fyi.
lol it makes sense…trust me I know how dealing desk brokers operate. They are to be avoided at all costs.
Hey share the videos and the spector pro data 🙂 I’d really like to see again just how badly they rape the price feed and their traders.
You dont know what you are talking about. Think twice before posting this bs.
Thank twice before you post your bs comment. If you clearly did know what you were talking about you’d back it up with something instead of making ad hominem attacks.
After reading this blog, I confirmed beliefs I had for a long time.
I always asked to myself: why forex trading was opened for the retail investor?
I think that nobody may think is to “help” small investors.
So what is the obvious answer?. Simple, to create a new way to take away money from the little guy.
O que você acha?
The way I see it there are two ways that the little guy can get screwed by the retail forex business.
1) Dealing desk brokers who outright steal from customers.
2) Non cheating brokers who make money just because the little guy has no clue how to trade.
Let’s face it, the forex market is moved and dominated by banks and bank traders. Most retail traders just get fleeced.
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