Can we trust forex Brokers?

nw24x

Junior member
13 3
Hi everybody!

Suppose one becomes extremely successfull trading currencies and lets say he becomes a millionaire:cool:. How will the broker react? Will the trader come in the broker' s radar, and the broker start manipulating the trading platform against the trader. Will the trader be able to withdraw large amount of money?
Our loss is their gain so how can we trust them?
 

pboyles

Legendary member
8,072 1,302
Hi everybody!

Suppose one becomes extremely successfull trading currencies and lets say he becomes a millionaire:cool:. How will the broker react? Will the trader come in the broker' s radar, and the broker start manipulating the trading platform against the trader. Will the trader be able to withdraw large amount of money?
Our loss is their gain so how can we trust them?

They'll start long before you get to a million. Google virtual dealer plugin or fxcm fine.
 

nw24x

Junior member
13 3
Slippage is an issue if you are an active trader. But if you are a position trader it should not be an issue. I guess I have to found out myself, have not reached that stage yet.

Cheers
 

pboyles

Legendary member
8,072 1,302
Slippage is an issue if you are an active trader. But if you are a position trader it should not be an issue. I guess I have to found out myself, have not reached that stage yet.

Cheers

It's not just slippage, you are trading against the broker in most cases, they're not going to let you take a million off them.
 

duderex

Junior member
37 0
Just be careful when you pick on broker to trade. For some of them are not honest broker. Some might be scam, and some are honest. Check on the forums about their profile and business. The good broker is the broker that can answer the negative comments either from their traders or non.
 

UMOFX IB

Junior member
45 0
Nowadays there are many Brokers and the concept of forex trading is gaining popularity. There are scam brokers that are hurting many people. I am happy with my current Broker as they are "Registered Company in New Zealand". We just have to make a little research about the origin of a Broker and then we can trust them.
 

ph_trader

Well-known member
412 6
there is a risk in anything, even in good well known brokers, but no risk no gain i say, but on a positive note, i always tell my self that no matter my personal investment, i think the money anybroker has is quite bigger, like even if i have a 5 digit account there are brokers that deal with 6-8 digit figures, but its a traders job to be wise in choosing his broker, given that there are a lot of scams and ver very bad brokers out there no matter how well known they may seem, so play your trades safe, and get your earnings and ROI as soon as it comes to you
 

AARasheed

Member
58 1
Hi everybody!

Suppose one becomes extremely successfull trading currencies and lets say he becomes a millionaire:cool:. How will the broker react? Will the trader come in the broker' s radar, and the broker start manipulating the trading platform against the trader. Will the trader be able to withdraw large amount of money?
Our loss is their gain so how can we trust them?

The market maker brokers won't allow you to get to that level.
In this day, these people will either have a person that will profile the trader
or a computer (algo) that tracking you and automatic profiling you.
Very hard to make the money to a high level. They say when you begin to put in a certain amount per order size then you showing on the radar.
A lot of brokers will slip the price even bigger amounts during news, so if example, price on EURUSD drops by 100 pips then their system price will dropped by 200 (so more stops hit so more people losing money).
I speak from experience
 

AARasheed

Member
58 1
Risk is involve everywhere. Yes, we can trust forex brokers. If you have good knowledge, then it is easier to earn money.

Hello,

Not necessarily. Even with good knowledge you can lose big. WIth the brokers, it depends on what type of client you are.
If you put in $250,000 and trading 2 Million per clip size, then chance your trade not B-booked. The broker may not take the other side because risk high so will then A-book (send to either bank or another broker).
This way the broker himself cannot slip or manipulating you.

Otherwise more than three-quaters of people lose.
 

Lightning McQueen

Moderator
4,916 780
Nowadays there are many Brokers and the concept of forex trading is gaining popularity. There are scam brokers that are hurting many people. I am happy with my current Broker as they are "Registered Company in New Zealand". We just have to make a little research about the origin of a Broker and then we can trust them.

being a "Registered Company in New Zealand" will not save anyones behind. any 2bit worthless shell entity can show up in new zealand and be registered as an overseas company.
 

Davidee

Member
80 2
Hi everybody!

Suppose one becomes extremely successfull trading currencies and lets say he becomes a millionaire:cool:. How will the broker react? Will the trader come in the broker' s radar, and the broker start manipulating the trading platform against the trader. Will the trader be able to withdraw large amount of money?
Our loss is their gain so how can we trust them?

Firstly, currency trading is extremely difficult. Way harder than trading commodities, indices, individual stocks etc... So it's unlikely that you will become a millionaire doing it but somebody does so lets suppose it's you. Will your broker be happy?

That depends upon what type of FX Broker it is. If it is a market maker then your broker might not like it at all. Market makers are the counter party to their client's trades although they may try and hedge your trades in the market or against the positions of other clients who are doing the opposite and in which case they probably won't be to bothered. But if they're trading against you and you're winning (which retail FX traders rarely do) then they're not going to like it!

An ECN broker won't care if you win or lose through. They just provide the platform for everyone to trade against each other and take a commission regardless.

For beginners there is another option. An STP broker. An STP broker that passes all it's clients trades directly to a liquidity provider and therefore wants to see it's customers do well so that they carry one trading is a good option. But seriously, stay away from the bucket shops...
 

Davidee

Member
80 2
"being a "Registered Company in New Zealand" will not save anyones behind. any 2bit worthless shell entity can show up in new zealand and be registered as an overseas company."


Quite, just like a casino being licensed in the UK won't stop them emptying your pockets and kicking you out the door at the end of the night. All the regulations means is your funds are safe providing you don't lose them yourself, which most traders unfortunately do. And the few really good traders end up with everyone elses money.
 

Giovan

Active member
163 7
In this case you really have no option but to trust your broker. \When your account grows past 250K be sure to have a VPS service to make sure that you can always get the best prices and avoid brokers that don't keep their end of the deal.
 
 
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