Forex.. The Short and Not So Sweet Reality

[brettus]

Tom,

What are you basing this belief on? Personal experience? Do you know people that work for brokers? What facts/statistics do you have that would help prove your point? Anyone can make a claim like that but without any proof its pretty worthless. Why would a broker want to "Show you the door" if you are paying their spreads? That's how they make their money is it not?

Oh and if this thread is a wind up please ignore the above!!!

I've been screwed a bit by my broker. It's not like i was doing much wrong. The problem is. If they have no way of hedging it fully and it's going to lose them money on average, they will just get rid of you or stop you from doing it. None of my trades can cash settle anymore. Everything must be rolled.

 

[meanreversion]

This thread is 110% a gay wind up, everyone unsubscribe now

 

[Pazienza]

This thread is 110% a gay wind up, everyone unsubscribe now

I had done, but now you're promising 110% gay there's no way! RE-subscribed!

 

[leonarda]

It doesn't matter when you opened your account, If you,re hurting their bottom line they WILL show the DOOR. I agree the more trades you place the better for the broker, but you cant tell me that is the only way they make money. Its a business. Money coming in has to be greater than the money going out. If you are constantly taking more money from them, than what they are getting from you, that would not make much sense now would it. That is why there is only so far you can go in this industrie, without intervention from the brokers. As far as defining what position sizes would get your account closed. ANY POSITIONS THAT WILL MAKE THEM STAND UP AND NOTICE.

Think about this for a minute:
If you were a Broker with some good Business Sense, would you create a long term business that:
A) Makes a business out of traders "losing", knowing that these traders lose and go away, so to keep your business going you have to market yourself as super dupper etc.. to make sure you keep getting more losing clients.
or
B) Makes a business out of trading commission/costs, knowing that a good/efficient execution platform will attract more traders, and those traders that are good will make more money, hence more commission etc... Your business make no loss from those winning traders as you simply hedge the net positions.

What do you think???

 

[6am]

What do you think???

I am thinking about casinos. They operate strictly in zone (A) and it does not hurt them.

 

[wackypete2]

I had done, but now you're promising 110% gay there's no way! RE-subscribed!

I figured 98% gay since my $%@#! broker stopped me out on the other 2%

f'ing brokers.

Peter

 

[leonarda]

I am thinking about casinos. They operate strictly in zone (A) and it does not hurt them.

Don't you think once a given Broker gets a reputation that they are a "Casino", then that Business will lose out against Brokers that aren't... hardly a good Business Case.

 

[6am]

Don't you think once a given Broker gets a reputation that they are a "Casino", then that Business will lose out against Brokers that aren't... hardly a good Business Case.

No opinion. Lets assume that "casino" business model is a bad model. However people do not always make rational decisions. Therefore it is possible that some brokers are casinos.

 

[meanreversion]

There's a good line from "Fooled by randomness", I don't recall it verbatim, but it goes something like - people believe their success is due to skill, whilst their failure is due to random events beyond their control.

This could easily be adapted to - I would make much more money if my broker wasn't an a - hole.