No thanks, I'd rather be a medium sized fish in a little candy-coated pond than a little fish in a dangerous shark-infested ocean!
Give me smoothed pricing, fixed spreads, and instant fills and I'm a happy little intraday scalper
Your Broker Is Your Enemy?
- Thread starter DRiSsT
- Start date
No thanks, I'd rather be a medium sized fish in a little candy-coated pond than a little fish in a dangerous shark-infested ocean!
Give me smoothed pricing, fixed spreads, and instant fills and I'm a happy little intraday scalper
I find it odd that you can say this in forex and surprisingly there is no one rejecting this claim. But you say the same about market makers in stocks, we get a bunch of clowns coming in and arguing against the notion.
futures and spot forex both have thier places, you just need to decide which is for you. the biggest difference between the two is the ability to control risk thru sizing available in the spot mkt,,, from full lots to micro lots
a debate with an office manager / broker awhile back yielded the following comment from him in brackets & research reply from me
[Anytime a firm benefits from the losses of its customers, you have to question the integrity of that firm as well as the legitimacy.]
This seems very opinionated as well. So I decided to check. A quick phone call to the CBOT confirms that the floor brokers, who set the bid ask spread are required by CBOT rules to either be an employee or affiliated with a clearing firm. Arenât the floor brokers there to make a profit from the transactions? Some of the clearing firms operate their own trading desk for the profit of the firm. Which sometimes would be against the customer. So that brings up the question which of these firms lack integrity and legitimacy?
CBOT
http://www.cbot.com/cbot/pub/page/0,3181,1923,00.html
Quote from Scalper007:
I find it odd that you can say this in forex and surprisingly there is no one rejecting this claim. But you say the same about market makers in stocks, we get a bunch of clowns coming in and arguing against the notion.
The HUGE difference is that multiple market makers are competing on a regulated exchange to make a market, set prices for a certain stock, resulting in a best bid/offer and abide to certain rules regarding filling of orders.
Your trades get cleared.
Your "friendly" forex MARKET MAKER is the ONLY one who decides what the market price is and when he is going to fill you with NO RULES AT ALL.
No need to clear any trades.
Clear now ?
Why should they?
At 3 pips spread and 100:1 leverage, forex broker earns 1% of your account every time you buy or sell.
That's the same level of profit as in a casino, but he doesn't have to build palaces, hire dancers and give you free drinks.
It's in broker's best interest to maintain fair quotation so that you trade as much as possible, and bring friends. Broker is also very much interested that you win, not lose !
At 3 pips spread and 100:1 leverage, forex broker earns 1% of your account every time you buy or sell.
That's the same level of profit as in a casino, but he doesn't have to build palaces, hire dancers and give you free drinks.
It's in broker's best interest to maintain fair quotation so that you trade as much as possible, and bring friends. Broker is also very much interested that you win, not lose !
LOL, what a load of bollox, the only accurate bit is the paragraph above!
Hey flut did you write that because it sure sounds like some of the garbage you come out with
I expect that's what he came for, but like every other forum on the planet there's always some noise from the clueless
Wait, don't tell me you think flut's copy & paste is actually good info/help!