Bucketshops Vs Real Trading

A

andrey_tech

How can bucketshops survive while players are consistent winners insted of chronic losers (or gamblers)?

Think once again, you are trading against market maker with its tools (trading platform).
 
1. They make money from the spread, 2 way business and
they pocket the spread.

2 While they have 3 point spreads they receive 1 from
their liquidity providers, so they can pocket 1 point
if they cover right away.

3 They make money from the roll, there is a spread
on the roll and since they have customers on
both sides of the roll they make the spread. Also
they charge more for the roles then they are charged.

So money can be made without screwing your clients, but
screwing your clients brings in a forth way to make money......for
those brokers who do it.




Quote from coldrunner:

What then would be your recommendation be on where and
who to trade with?
More...
 
I have no smart idea about where is the fair place for forex trading. I just let the community know about brokerage and market making are two different business. It is not a logical explanation about spreads are the hedging instruments for market makers who also give you a trading platform. Internal communication between customers' orders are impractical. Manipulation in price quotes and artificial stop hunting are also another scamming issues. I am not telling all is out of fairness. Of course there are tons of fair market makers on the industry. However at the end you will always need their mercy.

PLEASE CHECK !!

http://www.elitetrader.com/vb/showthread.php?s=&threadid=60032

12-13-05 03:42 PM <--- This message contains valuable information about forex brokers and market makers are the same person.




Quote from coldrunner:

What then would be your recommendation be on where and
who to trade with?
More...
 
Quote from toby400:

So what is the POINT of this thread :confused:
More...

Which is better: ECN model or Traditional (bucketshop model) ?

If ECN model are good enough for the previous mentioned URL, why still bucketshops survive in the industry ? What's the catch ?

Maybe bucketshops are not really bucketshops and maybe they are better in merciness. And maybe ECN models are not good enough as it looks and it may contains more fraudental possibilities than traditional model.

These are points of this thread.

Now majority of the traders know retail forex brokers are also market makers and we all used their own trading platform. Think again : You are trading against market maker with its tools. It doesnt matter if they are able to hedge themselves and only make money from the spreads. It does matter, our success depends on their mercy.

Maybe I am wrong. Please correct me, what is wrong for my worry ?
 
Quote from andrey_tech:

How can bucketshops survive while players are consistent winners insted of chronic losers (or gamblers)?

Think once again, you are trading against market maker with its tools (trading platform).
More...

Which broker(s) is in the bucketshop catagory?
 
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