Learn More Forex Broker Tricks
Posted on April 22, 2009 in the Real Estate category
-Without Making Biweekly Mortgage Payments- Or Changing Your Current Mortgage. |
|
|
|
Introducing A New Mortgage Loophole That Will Quickly Build Your Home Equity & Effectively Reduce Your Mortgage: “Mortgage Cycling Revealed” |
Forex brokers are more of a marketing machine than market makers. Forex brokers need a constant stream of new clients to keep making money since most of the new traders dont survive longer than a few months.
Forex brokers spend vast sums of money on advertising to entice new traders. If you go on Google and search any forex related keyword, you will find most of the ads are by forex brokers. Forex brokers give many incentives to you to start trading.
Forex brokers want you to trade more. They use many methods as incentives to make you do that. One of the methods is to hold a Forex Trading Contest by announcing cash prizes of $2000, $1000 and $500 for the top three.
Most of the traders get wiped out trying to win the contest. This trick is almost like a lottery. Only a few win, rest loses! But in the end its your forex broker who makes the most money.
Forex brokers are free to offer any price to their clients. Most of the brokers get price quotes from the interbank market with a 1 pip or even lower spread. To this pip spread they add 2 or 3 or even more pips as the price quote to their clients.
These 3 or 4 pips are the risk free profits that the brokers make for each round trip trade. You see why forex brokers are giving you free platforms and trading signals, only to make you start trading as soon as possible. Your broker will make more risk free money, the more you trade!
Price shading is one of the practices used by forex brokers. If the price of a particular currency is rising, the broker may shade the price quote by adding a few pips in anticipation of the rise in currency rate. You wont even know it.
One of the classic tricks used by many brokers is to trip stop losses with a single momentary blip. Brokers have all the information about stop losses placed by their clients. So, if he finds many stop losses at a certain level, there will be a momentary spike in the price feed that will trip most of the stop losses.
You cant do anything. It was a momentary spike, so small that it only tripped the stop losses.
Since, there is no central exchange to compare moment by moment prices, your broker can offer any excuse like there was sudden large order in the market or the broker feed is much faster and reflects true interbank rates.
Related Posts:
- No related posts
Comments
7 Responses to “Learn More Forex Broker Tricks”
Leave a Comment
Which is the best forex trading company online? the ones ive tried have a very long delay.
I think you hit on an important part of Forex trading when you said they ‘tipped’ the stop loss orders. A lot of people don’t think of setting those off. Thanks
What are your thought on actually using a robot to trade the forex? If there is a huge swing in the market is it smart enough to adjust?
Trading is very difficult, you should consider following a good forex signals service with live statements published
Also like to know what is the best forex trading online?
thanks for the good article about mortgage cycling, I am goin to try it out, I´ll to let you know if it works for me, good content too about the forex broker tricks
Hey are you a broker yourself? I was wacthing a video just recentley about forex trading with in conjucntion the news, it was showing that by trading with every move in the news it could be very profitable, I was only worried that is would be risky plus you really have to be fast on your feet to be able to trade like that.