How Brokers and Liquidity Providers rip you off
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Thread: How Brokers and Liquidity Providers rip you off

  1. #1
    For people who do not know the facts, please read the post.

    A broker obtained you as his new customer. You deposited just like $250 (they let even very small accounts simply to hook you). You hope you'll be winning. All the broker needs is your money be in his pocket. I clarify how he does this.
    For instance the broker is DD (Dealing Desk). The point is that 99% traders are losers.

    What DD broker does is that he creates mini market from his clientele and his cash.
    When you buy, he finds another his customer that sells. The deal is finished. Normally your another counter celebration is your broker. Broker understands you will lose and instead of letting go your cash to market, why don't intercept them because of their pocket. You think you do not care. But you ought to care and here is why. It maybe not relates to demo accounts.

    The sport began.

    1. You create buy. He creates slippage for you and/or requote. Your position is filled when 3-4 pips went against you to make you nearer to a stop loss. If your position is stuffed, his place is filled with buy.
    2. He does changeable spreads like between 23-53 pips (on 3/5 digits values). Occasionally 13 pips to lure you as a customer. I saw one broker at the same time altered his spreads like 3-4 times a second within just like 23-53 pips. On what spread your position is going to be filled? 23 or 53? Of course 53.

    As a result you lost like 7 pips total prior to going into the market. He knows that based on 99% losers you'll finally lose your account. His risk is 1% plus tear offs. Stay tuned.

  2. #2
    Now you are in the market. Let us take example that you shed on this particular position.
    The market goes against you like 30 pips and you get out. You pressed on button. And you notice strange things such as requote, circumstance is occupied, slippage etc. and also the market went against you enjoy 6 pips as well as your position is shut.
    Thus, you have -7-7-30 = -$44.
    Your broker obtained 7 7 30 = $ 44.
    Thus, $44 left your pocket and chucked in your broker's pocket. And you thought that broker will become just 2. HAHAHA!!!
    Now you know the facts. Stay tuned.

  3. #3
    Quote Originally Posted by ;
    There is actually not any conspiracy against the trader....change your broker if you're not happy.

    Makingpips
    One of the purpose of this article is to help to discover honest broker.
    Do you know some honest broker. Tell us, please.

    I worked in this area (except I wasn't a broker) and that I know what I am talkng about.

  4. #4
    3. Imagine you triumph. Then your broker is losing. Someone is very miserable on the other side. But he stays calm. He understands he risks only 1 percent. The market goes up and you close the place BUT the place doesn't want to get closed. Again requote, context is active, slippage etc.. Sometimes it can take up to 1 very long minute and you see as your equity profit of 16 pips decreased to 12 pips and you're closed.
    You got: -7-4 12 = $1.
    Your broker got 7 4-12 = -$1.

    Stay tuned.

  5. #5
    Quote Originally Posted by ;
    The market goes like 30 pips and you get out. You pressed Close button. And you see strange things like requote, context is occupied, slippage etc. and also the market went against you enjoy 6 pips and your position is closed.
    Thus, you got -7-7-30 = -$44.
    Well just as one example.... Oanda has instant implementation. No re-quotes, and actually not much slippage (no slippage at all in normal markets). No context-is-busy material . The other solution is to decide on an ECN, but every shop has it's problems. The main thing is to learn to trade well. Because a fantastic br0ker might aid with the slippage pips, but in your case above.... You're going to be down 30.

  6. #6
    Quote Originally Posted by ;
    3. Imagine you triumph. Afterward your broker is losing. Someone is very unhappy on the other side. However he remains calm. He knows he risks only 1%. The market goes up and you shut the position BUT the position does not wish to be closed. Again requote, circumstance is active, slippage etc.. Sometimes it can take around 1 very long moment and you see as your equity profit of 16 pips decreased to 12 pips and you're closed.
    You got: -7-4 12 = $1.
    Your broker got 7 4-12 = -$1.

    Stay tuned.
    I would never wait for a very long moment to perform a position in or outside.
    And I am loathed to begin advoing brokers since it is personal preference. Price has mentioned Oanda and I think there are other threads about best brokers take a look.

    So can't comment on situations I have never experienced.
    I accept if market(s) are moving quickly there may be some slippage....so not a good time to enter!!! ....you may be chasing/forcing your way to a situation in which you will lose 100% of the time.

  7. #7
    STP, STP, STP, STP.. Is what we hear about.
    For people who don't understand STP means Straight Through Processing.
    According to what they try to convey to you is:
    1. You receive access to the market.
    2. We are not DD, we not play against you.
    3. You get filled instantly with the price that you see on the screen.

    But remember, your broker doesn't need your $2 disperse. All your money is wanted by him .

    After you open demo account you have no problems. You are extremely enthusiastic and open real account. The game begins. Wow.

    You may get 3 problems.
    1. Your broker
    2. LP
    3. Market

    Your broker still intercepts your transactions for his favor.

    LP (Liquidity Providers) connect your broker into some market pool. This market pool can be a unifiion of some major banks that create a huge portion of a general market. Your money is wanted by these sharks too. So, they intercept your transactions too and manage them for their favor.

    Consequently you again get slippage, requotes, circumstance is occupied etc. and what works against you to take off you your money.

    And the last issue is a neutral thing. When market goes really fast upwards, it means a lot of buyers and also little sellers. If you wish to buy, you will not be filled unless your counterpart is found. A good example, you will not be filled during gap.

    I set this post to assist simple individuals to comprehend what's going on.
    I think many brokers under different user names will attack me. But I don't care about doing it. All I care is the way to help simple individuals to know, to find better broker and LP, better if a single person is good broker and LP.

    If anybody knows good brokers, please let us know here.

  8. #8
    Quote Originally Posted by ;
    Oanda has immediate implementation. No re-quotes, and actually not much slippage (no slippage whatsoever in normal markets). No context-is-busy material .
    Thank you.
    Http://www.oanda.com/
    that I am going to try Oanda.
    Can somebody please add to the listing?
    Much appreciated.

  9. #9
    Quote Originally Posted by ;
    Thank you.
    Http://www.oanda.com/
    that I Will try Oanda.
    Can someone please add to this listing?
    Much appreciated.
    Or use an ECN like:
    pepperstone
    mb trading

  10. #10
    Quote Originally Posted by ;
    Or use an ECN like:
    pepperstone
    mb trading
    Thanks.
    Http://www.pepperstone.com
    http://www.mbtrading.com

    that I will try them out.
    Does anybody have or buddy's have live accounts with those brokers
    and please give feedbacks on the executions.

    As for me so good is http://www.upfx.com

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