Any elite traders ever been banned by CFD brokers for being consistently profitable?

[maxinger]

I had an account with a spread betting / CFD broker in the UK about 10 years ago, and in one of their forums a user pointed out the way they work. They follow these book models:

https://match-prime.com/a-book-vs-b-book-broker-the-key-differences-between-the-two-forex-models-2/

Essentially they trade against you initially, and if you are profitable they trade with you. I don't know if you are massively profitable what would happen to your account, probably the same, they will trade with you.

At the time I closed the account I had like a 4% increase in my funds and they didn't care.

MM job looks easy.

That is an easy way to chase away a profitable trader.

That profitable trader has to change the broker continuously.

 

[Pekelo]

Essentially they trade against you initially, and if you are profitable they trade with you.

This makes the most sense. At least this is how I would run a CFD firm if I was in charge. The profitable clients can be used as signal givers and assuming they are fairly easy to follow (few trades with decent holding times) they can be traded with using futures and make a killing.

 

[TrAndy2022]

I read there is somewhere like $6 billion annually to be earned from B-Booking, so trading against the customer. The brokers would be stupid if they do not take a share of those profits and just copy the profitable traders. That is why also so many prop firms are around where you can "additional capital", it is built and financed from failures of loosing traders. And the profitable traders on props are also copied (so not trading against them). The only thing is that they make sure not to trade against everyone (otherwise that would be suicide and for sure they need to ban profitable traders), then it is a safe place (with a CFD broker or "retail" prop firm like Apex for Futures or MyForexFunds for FX and CFDs e.g.).

 

[M.W.]

That is self understood. Of course will most cfd Brokers net client flow. But that is very rarely the case that opposing orders arrive within a certain time window. That means that almost always cfd brokers' interest is stacked against client flow. How cfd brokers treat such opposing interest is obviously a function of their business decisions and how scrupulous or unscrupulous they are.

Serious CFD platforms hedge their net books. (If they got one guy that is long 1 contract and another that is short 1 contract of the same instrument, the net is zero and no risk to them. Similar for strongly correlated instruments in money units. So ultimately they would have no reason to ban you regardless if you're winning or not. They do not want everyone to be on the same side of the instrument though, ideally, since then they need to hedge everything and make less money.)

If a CFD platform bans a winner they're most likely not hedging net and just pocketing the money, i.e. are thieves.

 

[murray t turtle]

The maxinger post is garbage, but it's true that 99.8% don't know how to trade so spreads are their world, I've generated 50% per quarter for private funds/family office/hedge funds and CFDs were used in certain cases, we didn't have problems but then I know what I'm doing, so few make profits it really won't make much difference to them to allow one through, in some cases it provides plausible deniability for the broker so they welcome someone who's profitable.

%%
OK;
not sure i would agree with 120% of that.
IF a garbage pile has 80% garbage=trash;
may have 20% treasure LOL same % as FORBES notes/20% profitable on that junk
I dont mean junk in an insulting sense; most scrap dealers deal in junk+ profit , same with junk [silver] coin dealers/huge bid /ask spread.
Forbes[online APR,2023 ]said they also charge overnite interest.
Interesting no UK capital gains tax or stamp tax. on that junk[Edit be humble, pride is a great bannana peel.]

 

[Flowfollower]

What is a large amount of trades to be banned for? 10 per day.

 

[Snuskpelle]

What is a large amount of trades to be banned for? 10 per day.

You're going to have to elaborate on that. Both why you think that is and what specific CFD platform would have an incentive for that (typically, they want you to trade more, not less).

 

[nitrene]

I had an account with a spread betting / CFD broker in the UK about 10 years ago, and in one of their forums a user pointed out the way they work. They follow these book models:

https://match-prime.com/a-book-vs-b-book-broker-the-key-differences-between-the-two-forex-models-2/

Essentially they trade against you initially, and if you are profitable they trade with you. I don't know if you are massively profitable what would happen to your account, probably the same, they will trade with you.

At the time I closed the account I had like a 4% increase in my funds and they didn't care.

Sounds like a modern day bucket shop as described in Reminiscences Of A Stock Operator.

 

[Drawdown Addict]

Sounds like a modern day bucket shop as described in Reminiscences Of A Stock Operator.

People call it exactly like that, pound shop or bucket shop. The minimum bet is 1£

 

[Buy1Sell2]

Your mind is full of garbage.
That's why you read my message wrongly.

Let me repeat :
If you do day or HFT trading using CFD brokers, you can't earn $$$.


If you do swing trading or spread here and there, there is some possibility you might earn $$$.

Correct