DislikedThere are successful traders, but they work for banks and hedge funds. They earn a paycheck, though they'll get a year-end bonus if they make the bank/fund lots of money. Now, I assume you mean private traders trading their own accounts. In that case , the answer is no. First off, if you're not a big bank or hedge fund, you really can't access the interbank market , i.e., the "real" forex market. So you must go through a broker/market maker. Then you're paying a commission (even if the broker calls it a bid/ask spread). So, you're playing a negative-sum...Ignored
- best traders dont work for bank, bank have at best just medium traders, often not even this
- you get much more money trading private funds then in company, believe me (if you are a good trader, if not ofcourse not) - in a bank you earn it without risk (thats the difference a not so good trader will choose this way always), i have seen so many traders go out from bank after earned some 100k and earned some millions each year later, but know only 10 maybe, who earn in banks over 1 million with real trading (and i know many because i teached many). the not so good traders still work in the bank, but on the other side often inside banks and hedge funds you dont need good traders, because you invest more then really trade. after teaching you 3 month in this anybody can invest, thats no secret, most hedge funds only try to beat a benchmark index.
- you really think you cant access the interbank market by not being a bank or hedge fund??? its very simple as privat person, open account and start. for some solutions like german bank autobahn or some prime brokers you need 1-5 million to start, but no problem to start as private person. for some is even enough turnover per month ok. you can even open your own whitelabel broker if you really want to.
- you really think hedge funds will not pay commssions when they are in interbank market? its not that easy, you pay less with much more turnover/month, but still you pay commissions (and thats logic, how will that broker earn money when dont have a commission??). and the ask/bid spread you pay too of course, and even much higher, because you trade most of the time much higher volume, but in many currencies and trading solutions (like autobahn ....) you have advantages with big trading amounts because they are designed for this (spreads are still ok)
- you think, when you are no bank or hedge fund you need to go only with marketmakers? then you really have very bad broker knowdledge and need to aks many people more about other brokers. there are many brokers who dont play as market makers for smaller capital.
forex is like lottery, poker,... a zero sum game. many lose that some win. because of fees you need also many to lose to pay someone who has breakeven after 1 year. but anybody know this, or started this trading without smallest market knowledge, and then trading is stupid and what to say to this fact, you lose near always when you dont know what you do and in what market you act and dont know the basic rules.
but its not that bad like you describe it. this is no business where money is printed, its only changing from one hand to an other. 99% is pure math, and the more experienced win most of the time, like in most zero sum markets (without pure luck markets like lottery,...).
1
