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Stopped by Forex brokerage from trading because you win too much
I have been reading over and over again that retail forex brokerages are the counter party for your trades.
If you win, they lost money and if you lose, they win money
I'm curious are there anyone out there that had been stopped by your brokerage from trading because you have been consistently profitable in the spot forex?
Can you help answer these questions from other members on NexusFi?
Not really these days. Most Forex brokers either have their own liquidity pool or are using a white label service which aggregates many brokers and liquidity providers.
The counterparty on the other side of your trade is usually not the broker but rather another participant like a bank or another trader like you. All the broker does is collect commission each way for facilitating the trade. Easy money.
None of the brokers I have used have a dealing desk. In fact they want you to be profitable and do lots of trades, giving them commission each time. No good to them if you have an empty account with zero trading activity.
You have to be very careful when you trade forex, cause there are alot of fraudulent "brokers" out there.
One may ask, if 80% of the traders lose money trading why wouldn't I take the other side of their trades?It's a good business with 80% success odds, add to that the fact that a some Forex platfroms by design gives you the ability to control the quotes, watch the clients cam, hunt for his stops ...etc
I know a person who owns a Forex company, and he admited to me " if your hands don't go into client's pocket you're most porbably
gonna lose money".
Forex does not have centralized exchange and it's less regulated so there is a big possibility that you're not playing a fare game .... on the other hand Futures have exchange,CFTC , and fully regulated (much lesser chance to be a victim of fraud).
So in general I would advice you to trade futures rather than forex,CFDs...
Still if you insist on forex, as a rule of thump I'll avoid any broker who uses Metatrader ...
