Do Brokers Really Care About You?

We've just published a new T2W article called "Do Brokers Really Care About You?" by Rick Wright.

Quick Summary: Rick Wright explores the often discussed view that brokers deliberately take out stop loss orders and offers a way forward for reducing the frequency of this happening

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

And the fact that everyone knows where stops are just outside support and resistance zones is another reason not to put them there. If you're going to play it that way it's much better to have an even wider stop (say 3ATR) which is a disaster stop only and having your 'get out line' where you suggest having the stop. You only close the trade if price actually closes beyond your line, not price merely touching it.

And, Spread Betting companies are even worse

The author seems to have never heard of "Virtual Dealer", produced by Boston Technologies. This is a plug in, for brokers using the MT4 platform, and can be programmed to trade against the client. The program options include slippage, requotes and terminal disconnects at appropriate times.

surely this is against FSA regulations to use the program like that ?

They'd have to catch them first and in any case a lot of brokers are offshore. Gain Capital aka forex.com were caught and heavily fined though not to the extent that it would deter others. I doubt the virtual dealer plugin is the only piece of software out there.