FOREX truth

FXMart

Newbie
1 0
First of all, a few notes:
1) This is NOT a recommendation to do anything
2) This is NOT an advertisement, I am NOT an IB, I am a TRADER
3) I learned a lot from FOREX forums so I feel a responsibility to give something back
4) This is just a warning based on my very own experience that I will send across forums - take it or leave it

My main message to YOU is that the vast majority of brokers are robbing traders every single business day! And YOU are probably also one of the robbed!

A) Practically any broker that offers you deposit bonuses, big competitions etc. will NOT ever let you make any money due to direct conflict of interests as that type of broker is usually a market maker. Such a broker opens trades against you. Really I know what I am talking about, one of the market makers already canceled my profitable account and told me that I am too much profitable!
Those are robbers number 1.

B) Almost any other broker is NOT transparent (expect a couple of them). Their costs on majors are somewhere around 0.05 - 0.3 pips depending on broker possibilities and they charge you at least 1 pips, maybe 1.5 pips, maybe 2 pips or even more!
Don't forget execution costs (slippage) which is at least 0.5 pips to even tens of pips! Depending on qualities of the broker, his liquidity providers, market situation, trade volume etc.
Those are robbers number 2.

Just count for yourself. If your trading costs on EURUSD are 2.5 pips (1.5 pips spread and at least 1 pips slippage) and you would trade 5 lots per trade, 20 trades per day - your expenses after one year of trading = 660 000 USD

Frankly, I was introduced to a very reliable broker with banking license by an IB partner of the broker. I feel responsibility to mention him as he extremely helped me on my way through FOREX world. He provided me very individual institutional type of account where I trade with true interbank market spreads and the broker charges a commission - that's what I call transparent trading! Also the execution is great as the broker has a lot of liquidity providers - major banks. My trading costs on EURUSD are with average slippage counted 0,45 pips. So 5 lots per trade, 20 trades per day - expenses after one year of trading = 118 800 USD

That's over 540 000 USD of difference! Huge mathematical disadvantage in the case of broker with 2.5 pips costs!
I will not write more concretely about anyone due to advertisement conflicts.

It's just beginning from my side.
 

flowerhorn

Junior member
13 0
I agree with what you said especially those that offer bonuses. But then again, most traders are newbies. They trade without proper risk management and mindset.

Mind sharing your broker name here?
 

alanpris

Newbie
9 0
My main message to YOU is that the vast majority of brokers are robbing traders every single business day! And YOU are probably also one of the robbed!

I guess this is partially right but it`s also up to you to find a good broker. If someone isn`t able to pick a good broker for forex trading in the first place shouldn`t trade at all. That is the easiest part. :)
 

jkane

Active member
128 1
plenty of good brokers
if you trade $10 per tick or lower no issues at many
 

fxways

Junior member
19 0
If you are interested in learning all broker tricks, lend or buy the ebook at amazon.com called forex wars. it was an eye opener..
 
 
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