He keeps changing brokers and have many accounts in many brokers. I sish i know him in person so that I can ask him directly
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Brokers dont like News Trader?
- Thread starter vortextrader
- Start date
He keeps changing brokers and have many accounts in many brokers. I sish i know him in person so that I can ask him directly
Why not go with a more professional FX broker like for example Baxter or others.
I really don't see the benefits of having many accounts with many brokers.
He is obviously doing some sort of arbitrage which picks off brokers. Ones they detect the activity, they will close him out.He keeps changing brokers and have many accounts in many brokers.
There is no broker on the Forex world which will let you trade news. Why? Because Forex brokers are market makers. The full explanation of what a MM means is beyond the scope of the thread but in a nut shell when you gain the MM lose and when you lose they gain. The MM can only protect itself from losses ( meaning your gains) by hedging your positions. In news time the volatility can be so big making very difficult for the broker to hedge. You can get lucky and make a big gain trading like that, and that is a no no for your broker.
Some brokers will advertise that you are allowed to trade on news time, but that is just a bait. They usually freeze your platform insanely widen the spreads or engage in some freakish slippage tactics that will cost you one arm and a leg.
In equities news time will not be a issue for the broker, because they are not MM. The problem is that because of volatility their servers may not be able to handle the volume and you can have bigger slippage or some other weird stuff like order not filled etc.
Some brokers will advertise that you are allowed to trade on news time, but that is just a bait. They usually freeze your platform insanely widen the spreads or engage in some freakish slippage tactics that will cost you one arm and a leg.
In equities news time will not be a issue for the broker, because they are not MM. The problem is that because of volatility their servers may not be able to handle the volume and you can have bigger slippage or some other weird stuff like order not filled etc.
I agree with what you are saying. What about the STP Brokers though? They should not care.There is no broker on the Forex world which will let you trade news.
FXCM 10years ago, used to have enough of a delay, where a chart from another broker would move 50pts instantly up say, and I could still get filled in maybe 1.5seconds at the low price and it was enough of of a delay to get me out if it swung the other way.
They started adding delays and requotes to stop me doing this sadly.
They started adding delays and requotes to stop me doing this sadly.
I don't have time to fully explain the process right now, but no broker will let you operate in a fictitious market. During high volatility nobody really knows where price is. The broker can be quoting you a price that is several points ( or pips) below or above the real price. FXCM was operating as a STP broker when they went belly up because of the Swiss bank stuff in 2015. Again nobody can quote in high volatility periods.I agree with what you are saying. What about the STP Brokers though? They should not care.
I always assumed that *real* STP brokers display quotes provided to them by liquidity providers (perhaps with some agreement on avg spread) and, since they don't take the other side of the trade, should not at risk of any mis-pricings. Maybe if you get a chance you can shine some light on this.The broker can be quoting you a price that is several points ( or pips) below or above the real price.
In high volatile periods NOBODY knows where the price really is. Not even the liquidity providers. In the Swiss bank fiasco in 2015 banks got away with it because their FX operations were relatively small compared with their capital. Not the case of FXCM and other FX brokers which got cot in margin issues because they were passing quotes from their LPs which were way off.I always assumed that *real* STP brokers display quotes provided to them by liquidity providers (perhaps with some agreement on avg spread) and, since they don't take the other side of the trade, should not at risk of any mis-pricings. Maybe if you get a chance you can shine some light on this.
keeping aside the Black swan event like swiss frank. what Forex Oracle said is correct Market Model be it in Margin FX or CFD meaning you are playing against the house.. and if you have better chance of winning the house / bookmaker does not like it
Some brokers claim they are STP or DMA for CFD but are they really?
Where with an exchange you can see your order directly on a globally lit depth of market better playing field than OTC
Better trade Pure Exchange traded products directly ( lets also not confuse the MM model of a OTC and MM on exchanges)
Having said this if a OTC broker has enough liquidity on both sides then I guess it acts like an exchange matching buyer and seller and just making money on brokerage , in that case there is no conflict but million dollar question is DO they match internally? all the time something called Book A and B ( not sure how to explain that)
Some brokers claim they are STP or DMA for CFD but are they really?
Where with an exchange you can see your order directly on a globally lit depth of market better playing field than OTC
Better trade Pure Exchange traded products directly ( lets also not confuse the MM model of a OTC and MM on exchanges)
Having said this if a OTC broker has enough liquidity on both sides then I guess it acts like an exchange matching buyer and seller and just making money on brokerage , in that case there is no conflict but million dollar question is DO they match internally? all the time something called Book A and B ( not sure how to explain that)