Do CFD providers lose money when customers make money? Any problem if you're profitable?

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learner88

Is it true that CFD providers make money when their customers lose money? If this is indeed true, do you encounter problems when you are a highly profitable customer?

In Reminiscences of the Stock Operator, the bucket shops hated Jesse Livermore and resorted to all sorts of tricks to kick his business away. CFD providers seems like the modern-day bucket shop.

Any profitable elite trader here can share whether you encountered problems with CFD providers when you become consistently profitable?
 
If profitable you will get slower fills as the bucket shops attempt to hedge your trades. If they cant hedge in time they reject your order at the price offered or if limit order they don't fill it unless prices go through by several ticks in the underlying.

As a losing trader things are better: you get instant fills at the advertised prices as they are eager to take the other side of your trades.
 
Businessman said:
If profitable you will get slower fills as the bucket shops attempt to hedge your trades. If they cant hedge in time they reject your order at the price offered or if limit order they don't fill it unless prices go through by several ticks in the underlying.

As a losing trader things are better: you get instant fills at the advertised prices as they are eager to take the other side of your trades.
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I don't think you ever tried any CFD provider.
I myself tried many forex brokers who offer CFD,none of them did what you said.
I have both forex broker account and futures broker account. Trading on CFD and futures have same results.
 
wmwmw said:
I don't think you ever tried any CFD provider.
I myself tried many forex brokers who offer CFD,none of them did what you said.
I have both forex broker account and futures broker account. Trading on CFD and futures have same results.
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You probably not made enough profits to be noticed then. ie. you are not withdrawing large profits on a regular basis.
 
Market_Observer said:
Do you mind revealing what you estimate as enough profits to be noticed?
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This would depend on the size of the firm and how much profit it makes per year.

A bucket shop that makes $1 million in profits might have a lower threshold than bucket ship that makes $1 Billion in profits a year.

And it is not how much profit you make, it how much you withdraw. If you don't withdraw money these firms know you will eventually lose your profits back to them.

They really notice withdrawals, that is what gets you flagged.
 
Businessman said:
You probably not made enough profits to be noticed then. ie. you are not withdrawing large profits on a regular basis.
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You are making things up.
I am consistently profitable.
The point is not whether you are profitable.
I have both CFD and futures quotes and trades.If I get worse result on my CFD trading compared to futures trading,I would immediately change my forex broker. In fact that kind of things never happen.
You are providing false information and misleading.
What you said may be true 100 years ago,but not now.
I and many traders are consistently withdrawing profits.
Traders exchange brokers information on internet. Any broker who deny traders' withdrawal would be posted on internet and would be blacklisted by traders,which will cause huge outflow of their customers funds and may cause this broker to bankrupt.
I have seen one broker who delay a trader's withdrawal by a week for no obvious reason and this was posted on forum and spread fast, which caused huge outflow of its customers' funds. This is because competitions is hot now and we have hundred times more brokers than 100 years ago.
If I feel a little unsafe I can switch broker fast and easy because there are plenty out there that provide better service.
 
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wmwmw said:
You are making things up.
I am consistently profitable.
The point is not whether you are profitable.
I have both CFD and futures quotes and trades.If I get worse result on my CFD trading compared to futures trading,I would immediately change my forex broker. In fact that kind of things never happen.
You are providing false information and misleading.
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Maybe the reason is you have a good CFD broker, a better CFD broker than Businessman. I assume that both of you are highly profitable.

Can you share which CFD broker you're using?
 
learner88 said:
Maybe the reason is you have a good CFD broker, a better CFD broker than Businessman. I assume that both of you are highly profitable.

Can you share which CFD broker you're using?
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He never used a forex broker.
How do you expect someone to use a broker that he think will steal his money?
I have exchanged with hundred of traders on forums who have forex brokers accounts, never heard anything like what he said.
Only those who never tried a forex broker would say forex brokers are bucket shops.
I am using coinexx but I have had over 10 forex brokers before.
I can give you a list who offer service to USA traders.
If you are not a USA trader, your choice would be much more.
 
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