Forex is a scam!

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I studied and practiced for quite awhile and as soon as I went live those MM make sure to go against your trade-they along with the big banks make the money. This is something I received from an obviously disgruntled now ex-forex trader.

I think you can figure out where I stand on the subject. The primary argument folks who call forex a scam put forward is that fact that forex brokers take the other side of your position in their market making actions. They thus conclude that said brokers are trading against you. First of all, not all forex brokers are market makers. Some are ECN s.

They simply pass your orders through into the market like a stock market broker does. They make their money from commissions instead. Oh, and by the way, not all stock market transactions are straight pass real trader broker difference to the exchange either. Some brokers act real trader broker difference market makers in certain stocks. If you trade those stocks through them they are doing the exact same thing as the non-ECN forex brokers do. Further, the whole basis of the interbank market — and all OTC markets — is transactions between buyers and sellers and market makers.

In interbank forex, the banks are the market makers, both with and amongst each other and with the funds and companies that are their customers.

On top of that, there are market makers in all markets. They are the ones who provide steady liquidity. They do that by real trader broker difference being ready to provide a quote and take the other side of a trade. Without them the markets would operate much less smoothly. As a rule, market makers in all markets look simply to make the spread over and over and over again. Forex brokers who act as market makers operate in basically the same fashion.

They are just offsetting customer longs and shorts against one and other. Do they sometimes have an overbalance? In such cases they have internal processes which determine whether they keep the exposure or whether they offset in the market. Different brokers handle things different ways in that regard. That gripe has been in the markets for years — all markets. Traders in the futures markets are supposedly notorious for that kind of action. Real trader broker difference markets and market makers exist to facilitate transaction flow and make their money from it.

They are going to do whatever makes sense to increase that flow. That periodically could include running stops. That sort of action, though, is a bit easier in a centralized market than in the widely dispersed forex market. As such, stop running is not something easily accomplished. It would take a highly coordinated effort real trader broker difference a wide array of market makers to do that kind of thing.

In most cases, the claims of stop running coming from forex traders is nothing more than people getting burned by putting their stops too close to the market and getting taken out by normal volatility. The question I would ask for anyone who is making a claim of forex being a scam is whether they can demonstrate a trading system with a meaningful track record of success and that they followed said system as designed. A lot of traders spend a relatively short period of time in demo trading and make good returns with no wie verdienen binare optionen broker proven real trader broker difference, then find that things are very different when it comes to real money.

This is more about the trader than the broker. The idea that your broker looks at real trader broker difference specific open positions — out of the many thousands of trades that might be open at a given time among all their customers — and make decisions based on it is egotistical and real trader broker difference in the extreme. Are there scams real trader broker difference the forex market? Anywhere you find a lot of money you will find scammers.

If you avoid those with extraordinary claims and stick with regulated companies, though, you can avoid being a victim. Sorry, your blog cannot share posts by email.

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A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission.

A firm or individual who trades for his own account is called a trader. Commodity contracts include futures , options , and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit. Ever since the s, the majority of commodity contracts traded are financial derivatives with financial underlying assets such as stock indexes and currencies.

When executing trades on behalf of a client in exchange for a commission he is acting in the role of a broker. When trading on behalf of his own account, or for the account of his employer, he is acting in the role of a trader. Floor trading is conducted in the pits of a commodity exchange via open outcry. A floor broker is different than a "floor trader" he or she also works on the floor of the exchange, makes trades as a principal for his or her own account.

IBs do not actually hold customer funds to margin. They advise commodity pools and offer managed futures accounts. CTAs exercise discretion over their clients' accounts, meaning that they have power of attorney to trade the clients account on his behalf according to the client's trading objectives. A CTA is generally the commodity equivalent to a financial advisor or mutual fund manager. A commodity pool is essentially the commodity equivalent to a mutual fund.

This is the commodity equivalent to a registered representative. From Wikipedia, the free encyclopedia. Retrieved from " https: Commodity markets Commodities used as an investment Brokerage firms.

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