DislikedThis would be true if the broker offset every trade with a bank.
90 - 95% of all traders blow out their account within 90 days, or whatever that oft-repeated statistic is.
So, on accounts under, say, $5000 or so, why wouldn't a broker just take the other side of every trade?
In 90% of cases, they get the spread plus the $5000 within a month or two. Do that a thousand times and that starts to add up to some real scratch. Why settle for a few hundred dolllars in spreads when you can sit back and bank on a true 90% probability trade?Ignored