Would Forex Brokers restrict traders who win 100% or 300% a year?

[Turveyd]

Ask them if they have an offshore branch.
I know some of Australian and European Brokers suggested their customers switching their accounts to offshore branches, which still have high leverage available.

As to brokers who bet against customers, traders who want to open accounts now
would first decide the brokers are not on the other side of customer's trade.
Such brokers are rare if not extinct now.
Check if your brokers use fixed spread, which means brokers are on the other side of your trade.

Here are all variable spread brokers. I see IC-market is on the list.
https://www.myfxbook.com/en/forex-broker-spreads

They switched me to there offshore account a few months ago, no outside Aussie trades new rule or something, so hoping the margin change won't effect me, but I'm not that lucky.

More hassle setting up another account if so, always something to waste my time

 

[GRULSTMRNN]

A broker and a market maker are entirely different things. And if you choose a broker who is a market maker then you are by definition the product.

"supposed too play fair" but if they are a market maker and can't hedge their risk then there is conflict of interest !

 

[FX trader]

Listen, I am not trying to argue with you about which instrument is more liquid. I said that
"there is not much ability to cross hedge" in cash fx and I assumed that FX trader is probably trading with marked up spreads because he is getting 300:1 from the aussie broker (and he only has 50k USD). I may be wrong about that too.

I never said that inter-bank spreads are not liquid (I know for a fact they are). The banks have state-of-the-art technology, and the quotes are nearly perfectly efficient.



Additionally, this statement by you confirms what I said about the bond market being the primary driver of FX flows.

Hi, I trade with FP markets on their ECN account they get 6 USD per lot plus the spread which is usually 0.2 to 0.5 on the USD/JPY pair since this is the only one i trade really

 

[padutrader]

Is there an honest broker that would really let a trader win this much and not restrict his account? Please any guidance will be appreciated

a honest broker is Pepperstone....IMO i have used them for 5 years......and once they commit they will stick to it.
so i suggest you ask them by email and if they say 'yes' save their email or ask for it to be given in writing and sent to your address by old fashioned postal service

OR YOU COULD ASK ANY BROKER

 

[eastern_warrior]

Australian Brokers ( I use ICMarkets ) are supposed to play fair so don't worry about that.

1st October 2019 they might be reducing leverage to 20:1 be warned

"Supposed" that is a big word. So much fairness there that ASIC has a consultation paper out stating how they want to limit leverage on FX and remove binary options due to a history of bad actors abusing the public. https://asic.gov.au/regulatory-reso...uct-intervention-otc-binary-options-and-cfds/.

 

[pipeguy]

My question: Is there a forex broker that would really let a trader win 100% or 300% and not limit his account or lower their leverage? Please any guidance will be appreciated


I trade with Australian regulated Brokers so I can the advantage of high leverage, I live in US but I have dual citizenship and I have another country address that is why I can do this. I trade 50k USD with leverage 1:300.

So I can say that 250 to 500 USD is easily achievable per day not including Sunday or Friday, at least for my strategy because the market does not move much in these two days. so if ( i know it is a big if) make on average $500x4 days a week = $2000 x 4weeks = 8000 x 11 months = 88000 (I will say 11 months because I excluded many holidays and a personal vacation or whatever)

Please do not just comment that the strategy would fail or succeed or that, because my question is not about my strategy or your strategy. it is about if you really can make big profits like 100% or 300% a year and would brokers let you continue or will find an excuse to kick you out or not accept you as a trader? or maybe lower your leverage to limit winnings!!

Is there an honest broker that would really let a trader win this much and not restrict his account? Please any guidance will be appreciated

I tried swap arbitrage with Hotforex and Tickmill, I was making 5-20% monthly return before got warnings from them. It had been continuing for 4-6 months with regular withdrawals. I guess the problem why my trading was that I was too lazy to hide or mix that orders and of course regular withdrawals. I would suggest that the general rule is to keep winning ratio at reasonable levels. And of course make sure you trade with regulated brokers that don't B-Book

 

[mlawson71]

If a broker is trying to limit you in that way it's time to change the broker, in my opinion.

 

[FX trader]

I tried swap arbitrage with Hotforex and Tickmill, I was making 5-20% monthly return before got warnings from them. It had been continuing for 4-6 months with regular withdrawals. I guess the problem why my trading was that I was too lazy to hide or mix that orders and of course regular withdrawals. I would suggest that the general rule is to keep winning ratio at reasonable levels. And of course make sure you trade with regulated brokers that don't B-Book

Hi, I am really new trader, what is the swap arbitrage? and why did you get a warning? is it illegal or something?

 

[FX trader]

You have answered your own question I think,,, a market maker broker would not like one sided trading ( unless he is sometimes hedging his risk with external party bu you never know)
I am assuming you are capable of making 300% a year in that case and if you dont want this "Broker" conflict" issue consider FX Futures on an exchange in US! you wont get 1:300 leverage though

Yeah exactly, the leverage is a key, and futures just does not work for me I tried it in NADEX and it is just pure gambling for me. the main reason the US is restricting leverage for forex is not really the risk but to drive more funds to invest in the stock market. for sure high leverage is a two edge tool but for someone who has self-discipline and trade experience which are many in the US it is a big advantage, the US just want more money in the stock market that is why they are restricting forex leverage and encouraging futures which are no way you can compare to regular FX trading. in futures, the broker has far more edge and more people lose money even though some ppl are really good at it.

 

[FX trader]

If you do arbitrage or your trade in and out too fast,( like in 1 minute), you will be banned by most forex brokers.They do not bet against you but they need enough time to hedge . Otherwise no problem with them no matter you win 10 times or 100 times in a month or two.
I saw lot of traders made 10 times, 20 times in a few month without problem withdrawing their profit from brokers.

FXCM case does not prove every broker does the same thing. Just like when you see a policeman do robbery does not prove every policeman does robbery.
If brokers all don't allow traders to make big money, who the hell need them? They will lost all customers and go broke fast. On forex forum, every small issue on the brokers side has been posted and traders all watch how brokers solve it. If they can't solve it fair and soon, there will be huge amount of their customers leaving them.I see a trader has big accounts with several offshore forex brokers, and whenever an issue with one of his brokers was posted, he go to chat and threaten to withdraw his fund if the broker can't solve the issue.

I see OP is new to trading and has many misunderstanding about trading.
Like S&P average 8% annual growth, he wants to leverage 10 times to make 80%. This will blow his account fast ,since 8% is an average growth. There are many times the index is down like 10% or 20%, then his leverage account will blow up many times.

I like your answer because maybe that is what i want to ask but my lack of experience did not allow me to phrase it correctly. So what would be a good time not to get banned and give them time to hedge?

my trades usually take between 10 mins to 2 hours. most optimistic would be 5 mins. 1 min time frame happened but maybe not more than 4% of my trades.