Jul 29, · In Forex trading, you want your broker to be able to answer all of your questions and queries. If your broker cannot respond to your messages and problems, move on. Make sure that your chosen broker has a good customer service team – if a broker does not, Reviews: 21 Feb 27, · Instead of worrying about coding errors and the entire process of creating an expert advisor for MT4, the Forex Robot Factory can complete this automatically in little to no time. As such, you can create dozens or even hundreds of trading robots in one sitting Jan 29, · Not Maintaining Trading Discipline: The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful forex trader means achieving a
Top Reasons Forex Traders Fail
Making money through forex trading needs 3 requirements to be met at the same time:, can a forex broker make errors. We have to talk about all of these 3 requirements on a regular basis.
You have to learn the techniques and master your trading system, and at the same time can a forex broker make errors have to build a proper and stable mental and psychological status for yourself.
Additionally, you also have to know about the brokers, the way they work and make money, and the way they can cheat their clients to make more money. As a retail trader, you need to have an account with a broker, otherwise you will not be able to trade.
Many professional traders, hedge funds, money managers, proprietary trading firms, and institutional traders who have large trading capitals, trade through the banks. Some of them have their own custom made platforms connected to the liquidity providers. However, novice retail traders who want to start with a small account, have to sign up for an account with a broker, because they cannot afford to trade through the banks, or have their own platform.
If you are a retail trader who wants to open a live account in future, or you have already opened a live account, you should know how the brokers make money and how they can cheat you to make more money. There are so many traders who open a live account before they learn to trade properly, and so they lose. Instead of finding the problem and trying to can a forex broker make errors it, many of them are used to accuse the broker.
It is true that many brokers cheat their clients, but most retail traders lose because of their own mistakes, not because the brokers make them lose. A cheating broker can cause the losing traders to lose more and wipe out their accounts faster, but a professional trader can easily find out that the broker is cheating, so that he will withdraw his money and close his accounts as soon as possible.
I will have a separate article about the ways that broker can make money legally. In this article, I am talking about the ways that brokers cheat their clients to make money illegally.
Nowadays, traders talk about regulation all the time. A brokerage company is regulated when it is registered with a governmental organization that monitors the brokerage companies activities. Usually there are also something like insurance that covers the traders capital if the registered broker gets bankrupt. I have seen some highly regulated brokers that cheat their clients the most. There are proofs that those regulations are done by the governors who directly or indirectly own brokerage companies and make millions through them.
They made the regulation rules to prevent the traders to open accounts with the offshore brokerages, so that the money stays in their own countries, and the traders become obliged to open accounts with those brokerages owned by the governors.
I am sure you can guess the rest of the story…. They get regulated and registered because they have to, not because they are honest. There are dirty hands behind these kinds of apparently good actions regulation. Indeed, they created a funnel to drain the funds to their own pockets. However, people just see the surface and are not aware of what is going on behind the scene. Let me ask you a question. Many of them wipe out their accounts at least a few times, before they give up on forex trading.
Many of them lose a lot of money. What these so called regulations have done for these people? What the governors have done is not about supporting the traders. It is about driving the funds toward the direction they want. They could do the same with having a live account too.
You know the answer. They want you to open a live account before you learn to trade properly, and lose your money. Before the regulations, they were worried about you to lose your money to the overseas brokerages, but now it is OK if you lose, because your money goes to their own pockets now. This is not true. Stop loss hunting is a very effective way that market maker brokers use to make the traders lose money.
To learn about this method, please read this article: Stop Loss Hunting by Forex Brokers — What to Do? However, many of them who are greedy, want to make more money through some other ways.
In this case, the broker makes 1 pip, in addition to the commission it is legally allowed to charge. You can ask the broker first. Sometimes they tell you that they are doing it. Many of them deny it, and claim that the spread they offer is can a forex broker make errors normal forex market spread. If it is pips above the regular spread, then they are adding markups to the spread. When you found out that your broker can a forex broker make errors markups too, it will be your choice to withdraw your money and close your account, and find another broker.
A high spread because of adding markups can be easily seen on the platform, by checking the difference of the bid and ask prices. However, slippage is hidden to the traders. Slippage is a trick made by the market maker brokers. As your profit is their loss, then they have to do their best not to let you win. One of the ways is that they slip the price when you want to take or close a position.
When you want to buy and click on the buy button, they suddenly take the price higher, so that you will enter with a higher price than what you see on the chart. You click on the buy button and you enter, but when you check your entry price you will see that it is much higher than what you saw on the platform. For examples it is 1. However, when you want to close a short position you buy they slip the price and you get out with a higher price. It is all done automatically and through some special settings of the platform.
If you ask them why this happened, they will answer that it is because of the market situation, volatility and…. In contrast, they want you to win, grow your account and keep on trading with them, so that they will also make more money in long term, can a forex broker make errors. Although this is done automatically and electronically, but it takes some time and it is possible that the price changes during this time, specially when the market is moving strongly, can a forex broker make errors.
So you will enter with a different price than what you saw on your platform. Re-quoting is another trick made by market maker brokers, can a forex broker make errors. When the price is going up strongly, and you choose the right direction to enter you click on the buy buttonthe broker delays for few seconds, and then instead of taking the position for you, gives a new price which is higher than the price you want to enter because the price is going up strongly.
They do it when you choose the right direction. Then you will have to click on the buy button again to enter. It is possible that they re-quote again, and repeat this process for a few times, to either stop you from entering the market, or make you enter with a much higher price.
They just want to sabotage your trading. They cause you to enter with a lower price to prevent you from making a good profit from your short position. If you find out and complain, they will say they have no idea, and re-quoting is just the result of the markets volatility, and they have no control on it, and…. Whereas this is absolutely a big lie. They do the re-quoting through some special software and settings they apply to the platforms. It will have no advantage for them.
It is a market maker broker. Swap has to be calculated through a special formula, and as each currency interest rate is clearly stated by the related central bank, the swap has to be a constant amount with all of the brokers, banks and liquidity providers. However, the swap you actually pay is different from broker to broker. Swap can cause you to lose a lot specially if you hold your positions for a long time. Leverage is a good facility that helps us trade large amounts of money with a smaller account, and make bigger profits compared to the time that there is no leverage.
However, it is a two-edge sword that can cut our own throat, can a forex broker make errors, if not used properly. Most of the novice and inexperienced traders misuse the leverage and take huge positions that their account can a forex broker make errors is not high enough to handle.
So that when the position goes against them, they get margin call and stopped out very easily and the whole account will be wiped out. Read this carefully to learn about the leverage, margin… : Leverage, Margin, Balance, Equity, Free Margin, Margin Call And Stop Out Level In Forex Trading.
However, market maker brokers can offer any leverage they want. I see that nowadays some of them offer which is crazy. Why do they do it?
A higher leverage makes them take bigger positions, lose more and wipe out their accounts faster and easier. They think about making more money within a shorter time. This is it about the ways that brokers can cheat you. I will never do it. I have good reasons for that.
It is a very important article for us beginners. Now am thinking of not doing Forex trading after reading this. I have been practicing demo account and i made around USD in a month.
Thank you opening my mind. When you post an article about Real brokers then I will think of coming back to this can a forex broker make errors idea. I am a victim who has been scammed by Forex Trade Bulls, can a forex broker make errors.
I invested R but they said I need to pay R more in order to get my profit. This had happen on the 22nd August This article was very interesting. You explain complicated information in a way that gives your reeaders opportunity to understand more of the techniques that makes you lose money on trading. It cannot be said enough that if you want to trade forex or stocks you have to use a regulated broker.
6 Common Mistakes Forex Traders Make when Choosing Brokers - Trent Hoerr
, time: 16:1410 Big Mistakes Forex Day Traders Make
Jun 17, · While on its face forex is legal, "there are many potential bad actors in the space, and it is a prime atmosphere for spoofing, ghosting and/or front-running," says Braden Perry, a regulatory and Jan 29, · Not Maintaining Trading Discipline: The largest mistake any trader can make is to let emotions control trading decisions. Becoming a successful forex trader means achieving a Feb 27, · Instead of worrying about coding errors and the entire process of creating an expert advisor for MT4, the Forex Robot Factory can complete this automatically in little to no time. As such, you can create dozens or even hundreds of trading robots in one sitting
No comments:
Post a Comment