Why do people say brokers steal from traders no matter what? - Page 2
Page 2 of 845 FirstFirst 1234 ... LastLast
Results 11 to 20 of 41

Thread: Why do people say brokers steal from traders no matter what?

  1. #11
    I read a story that one person had multiple accounts and somehow concluded that the accounts performances were distinct over time running the exact same egy. Sounds somewhat hard to prove but in case you have a mechanical system which always works in 1 account and then you started running it on a different account and it stopped working, that might prove that something fishy is going on - such as some brokers or accounts being'bucketed' in a way in which the likelihood of success or failure shift.

    It may well be that there is some tiny traders being given consistent success as long as they remain within certain size, so then they can keep submitting, serving as indirectly paid promoters. This forum includes a few long time graphs that appear to have consistent success, yet if they exchanged big size, you'd think they would have some yachts by now and got bored of trading. The question remains - where would be the retail trader (clients ) yachts?

  2. #12
    Quote Originally Posted by ;
    Why is it that people say brokers steal traders regardless of what? They do it because they can. It would be quite naive to believe they don't have weekly meetings to devise the most effective ways of getting the most money from the customers. I understand this is a fact because OANDA just screwed with my account. I am filing a complaint.
    I am curious please inform me more about what Oanda did on your account. A larger portion of my account is sprinkled together as well so it is actually important for me personally.

  3. #13
    Quote Originally Posted by ;
    When I as a broker take the opposite positions of my client, I really could use that as a contract which I could turn into any sort of option.
    This kinda gets into why I believe uninformed reduced frequency trading fails consistently (and in current market, I doubt the'smart money' is performing much better). All the retail directional trading are hedged/turned into options in case the positions just stay open. There could be initial retail counterparty at a bucket store but finally the shorter duration retail counterparty (I am saying counterparty for a way to describe the accounting happening so that zero-sum stays valid) near their position and the longer duration traders place would end up someplace - hedged into options.

    So from that we could say that if a person is trying to swing trade or standing trade or whatever, especially with big size, then it is very likely the position ends up hedged and also the retail fx brokers hedge that into options that rust in value. Considering that the prices are a two-way road, the rust in option values works to alter the place quotes at a way to become reflective of the missing value, effectively going against the tote holders.

    So effectively, even if you start a position at a bucket store, finally because of all this, the price is very likely to start going against you when there is no one else holding even larger reverse loser open. Now those long options do cover occasionally, seldom, but I am nearly 100% sure the market has been'rigged' in a way that option sellers have to sleep in the wheel to shed as long as they are aware of what they're doing. It is not substantially different from insurers coming up with sort of things to avoid paying awards.

  4. #14
    Quote Originally Posted by ;
    quote This somewhat gets into why I believe uninformed reduced frequency trading fails consistently (and in current market, I doubt that the'smart money' is doing much better). Each of the retail directional trading are hedged/turned into options in case the positions just remain open. There could be initial retail counterparty in a bucket shop but finally the briefer duration retail counterparty (I'm saying counterparty as a means to describe the accounting happening so that zero-sum stays valid) near their position and then the longer duration traders place would...
    I appreciate your article, but I honestly don't start looking into what they may be doing since in no way shape or form does that impact the manner in which I commerce. All I'm certain of is that in ANY market condition, the market constantly trades in the exact same exact way. The market may be choppy or the market may be in breaking out. Either way, the conspiracy of the broker stealing funds from customers, in most instances is a crock of $h!t. People simply complain that their position turned into a large fat reduction, and once they were stopped outside, the market subsequently reversed... They seem to believe that the broker gets the capacity of doing that under normal market conditions.

  5. #15
    Just the simple fact that there is a flourishing market for virtual trader plug-ins (i.e MT4 parasite appliions to skin clients) tells all...

    there's even one called Anti-Scalper plug-in...

    You can Google it, but here is a few literature:

    http://www.tools4brokers.com/products/Virtual_Dealer
    http://www.forexpeacearmy.com/commun...r-plugin.9019/
    http://www.financemagnates.com/forex...ing-practices/

  6. #16
    Quote Originally Posted by ;
    Just the simple fact that there's a flourishing market for virtual trader plug-ins (i.e MT4 parasite software to skin customers ) informs all... There's one called Anti-Scalper plug-in... You can Google it, but here's a few novelty: http://www.tools4brokers.com/products/Virtual_Dealer http://www.forexpeacearmy.com/commun...r-plugin.9019/ http://www.financemagnates.com/forex...ing-practices/
    Man thanks, this is great, thanks for sharing, there is a youtube movie!

  7. #17
    Quote Originally Posted by ;
    quote I'm curious please inform me more about that which Oanda did to your account. A larger portion of my account is sprinkled together as well so it's actually important for me personally.
    Please inform us.

    Quote Originally Posted by ;
    Why do people say brokers steal traders no matter what? They do it because they could. It would be quite naive to believe they do not have weekly meetings to devise the best egies of getting the most money from the clients. I know this is true because OANDA just screwed with my account. I'm submitting a complaint.
    I don't have an account with them, but it's always good to know, just in case one of us confront the problem later on.

    Quote Originally Posted by ;
    quote I respect your article, but I frankly do not look into what they could be doing since in no way shape or form does that impact the manner in which I trade. All I'm sure of is that in ANY market state, the market always trades at the same precise way. The market could be choppy or the market could be in breaking . In any event, the conspiracy of the broker stealing funds from clients, in most instances is a crock of h!t. People simply complain that their position turned into a big fat reduction, and once they have been stopped outside, the market afterward...
    I agree with you, but look at this from the link MasterGuru posted.

    Http://www.financemagnates.com/forex...ing-practices/

    Quote Originally Posted by ;
    Those having good memory will recall that just 6 months past Gain Capital was slapped with $459,000 good for abusing its Virtual Dealer plugin and configuring it into unfair trading configurations.
    Quote Originally Posted by ;
    The main idea behind these plugins is to protect the broker from being exploited by certain traders that will try to profit pips that they shouldnt profit when they provide an order expecting that by now the order is accepted from the broker the market already transferred a pip or two in their favor. This obviously makes it not investing but exploiting loops in brokers systems. On the flip side, brokers (some might even say that many brokers) exploit the setup of these plugins and set them to just accept orders once the market moves against their clients...
    I do not care about the plugin, I caution about the concept of this zero riks for your broker.

    What's the risk? What I understand is that the broker has no problems, since they live away from their comissions, what does it matter whether the price moves in favor or against the client, anyway they'll receive their comissions.

    Please someone explain to me

  8. #18
    A year ago I met the owner of a New Zealand based brokerage (incidentally: DO NOT trust any NZ-based brokers), who told me that on the annual Forex Expos there are numerous firms selling the very newest parasite digital trader plug-ins.

    He also told me that lots of (mostly Russian) brokers do not even bother to contract with Liquidity Providers, i.e. that they B-book everybody. Should a client be a profitable trader, then they attempt to make him leave by an arsenal of plug-ins. If they still cannot make him go, then they simply delay or deny paying out profits... In other wordsthese brokers are interested just in the 95 percent of the traders, i.e. in the losers. As strange as it can be, but this is a profitable Forex broker business model...

  9. #19
    Quote Originally Posted by ;
    A year ago I met the owner of a New Zealand based brokerage (incidentally: DO NOT expect any NZ-based brokers), who advised me that on the annual Forex Expos that there are various companies selling the very newest parasite digital dealer plug-ins. He also explained that lots of (mostly Russian) brokers do not even contract with Liquidity Providers, i.e. that they B-book everybody. Should a customer be a profitable trader, then they attempt to make him depart by an arsenal of plug-ins. If they still cannot make him go, then they simply delay or deny paying out profits....
    But I presumed Brokers just earn cash with comissions, no with traders cash.

    I invited this man to this thread: https://www.forexforum.co.za/general...ents-euro.html

    Therefore, 90% of traders do make cash all the time, the broker enter bankrupcy (I do not understand the word).

  10. #20
    Quote Originally Posted by ;
    quote However, I thought Brokers just earn cash with comissions, no with traders cash. I invited this man for this thread: https://www.forexforum.co.za/general...framework.html So, 90 percent of traders do make money all of the time, the broker goes into bankrupcy (I don't understand the word).
    In accore with a Swiss fund manager (who understands Forex brokers better than me, because diligence is main portion of his occupation ) practically all trades below 50 lots are B-booked by the brokers, i.e. the brokers are betting against 99% of the retails customers. Making sense (from the brokers aspect), since they profit not only the spreads as well as the commissions, but also the customer funds which 95 percent of Forex traders lose.

    You're right, if 90 percent of traders obtained, then brokers would go bankrupt. That is the reason they must use the trader plug-ins. Especially against powerful scalpers.

    All-in-all: Forex is a funny company. Serious traders do not even exchange Forex, however they exchange the centralized and thoroughly regualated Forex markets (incl. Currnecy stocks ) or stocks.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.