Brokers prefer to win or lose ? | Page 2 | Forex Factory

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Brokers prefer to win or lose ?

  • #21
  • May 23, 2018 3:41am May 23, 2018 3:41am
Quoting bradley79
There are 3 types of Brokerage models. 1. Market Makers (Dealing Desk) brokers (A.K.A. DD/MM) - These brokers (can) trade against their own clients (i.e. traders) and prefer losers. This is why there is a lot of turnover (in terms of traders) with them and they constantly need new clients. 2. Commission based brokers (DMA/STP) - A commission based broker takes a fee from both sides of a trade (from the buyer and seller), so regardless of the success rates of the client the broker will get paid. However, this kind of brokerage model is incetivised...
The best summary on the topic, yet. Short and clear.
  • #22
  • May 29, 2018 2:35am May 29, 2018 2:35am
Quoting DwainUK
{quote} Yes, agree. Every trader should carefully select his broker. The success chance is bigger, if you trade in client friendly broker
Yes it is. But practical situation is completely different, because so many brokers are available in this retail market place and most of them are found to be scams. So, choosing a broker should be in cold mind always, please don’t choose a broker with an emotional state, otherwise you could fall a great trouble.
  • #23
  • Jul 12, 2018 7:41pm Jul 12, 2018 7:41pm
There is no other secret to it… Keep learning and implementing strategies.
  • #24
  • May 22, 2019 2:09am May 22, 2019 2:09am
it can be , by means of only real trading knowledge you cant bring profit with successfully for all time , besides knowledge it is more appropriate to ensure a reliable support from a credible trading broker, because they can affect the result of our trading with certainly.
  • #25
  • May 25, 2019 1:09pm May 25, 2019 1:09pm
Quoting bradley79
There are 3 types of Brokerage models. 1. Market Makers (Dealing Desk) brokers (A.K.A. DD/MM) - These brokers (can) trade against their own clients (i.e. traders) and prefer losers. This is why there is a lot of turnover (in terms of traders) with them and they constantly need new clients. 2. Commission based brokers (DMA/STP) - A commission based broker takes a fee from both sides of a trade (from the buyer and seller), so regardless of the success rates of the client the broker will get paid. However, this kind of brokerage model is incetivised...
Congrats for the full explanation.
  • #26
  • May 29, 2019 4:25am May 29, 2019 4:25am
Quoting bradley79
There are 3 types of Brokerage models. 1. Market Makers (Dealing Desk) brokers (A.K.A. DD/MM) - These brokers (can) trade against their own clients (i.e. traders) and prefer losers. This is why there is a lot of turnover (in terms of traders) with them and they constantly need new clients. 2. Commission based brokers (DMA/STP) - A commission based broker takes a fee from both sides of a trade (from the buyer and seller), so regardless of the success rates of the client the broker will get paid. However, this kind of brokerage model is incetivised...
Well; I am not concern on broker’s business model type! My main concern on their transparency!
  • #27
  • Jun 1, 2019 3:10am Jun 1, 2019 3:10am
Quoting bradley79
There are 3 types of Brokerage models. 1. Market Makers (Dealing Desk) brokers (A.K.A. DD/MM) - These brokers (can) trade against their own clients (i.e. traders) and prefer losers. This is why there is a lot of turnover (in terms of traders) with them and they constantly need new clients. 2. Commission based brokers (DMA/STP) - A commission based broker takes a fee from both sides of a trade (from the buyer and seller), so regardless of the success rates of the client the broker will get paid. However, this kind of brokerage model is incetivised...
Thanks!
  • #28
  • Jun 30, 2019 11:01am Jun 30, 2019 11:01am
I always thought they just do something like really make commissions from your trades and initial deposits, so maybe it's really good for them when you lost, but overall you will stop deposit money with them, I assume it really make sense for you, right ? Please make it possible for me.If they do plan to scam money out of you it's whole different story anyway. Thanks for make this important topic sticky anyway. Thanks for letting us know. Please do explain this for me.
  • #29
  • Jun 30, 2019 11:45pm Jun 30, 2019 11:45pm
Quoting Infassen
I always thought they just do something like really make commissions from your trades and initial deposits, so maybe it's really good for them when you lost, but overall you will stop deposit money with them, I assume it really make sense for you, right ? Please make it possible for me.If they do plan to scam money out of you it's whole different story anyway. Thanks for make this important topic sticky anyway. Thanks for letting us know. Please do explain this for me.
Only market maker brokers do so! But; regulated brokers only make money when traders open a new trade!
  • #30
  • Jul 5, 2019 12:47pm Jul 5, 2019 12:47pm
Quoting Adelhard
{quote} Only market maker brokers do so! But; regulated brokers only make money when traders open a new trade!
That`s for sure. But not only regulated ones. I can say all normal brokers don`t care if you lose or win. Only if you open trades or not.
  • #31
  • Jul 6, 2019 6:29am Jul 6, 2019 6:29am
Quoting momo3HC
{quote} That`s for sure. But not only regulated ones. I can say all normal brokers don`t care if you lose or win. Only if you open trades or not.
Not true.
?
  • #32
  • Jul 14, 2019 2:07am Jul 14, 2019 2:07am
Quoting momo3HC
{quote} That`s for sure. But not only regulated ones. I can say all normal brokers don`t care if you lose or win. Only if you open trades or not.
Yes but as you know; non-regulated brokers are mainly the market maker! Thanks.
  • #33
  • Jul 21, 2019 2:37pm Jul 21, 2019 2:37pm
Brokers need a supply of new clients because a large percentage wipe out their accounts (due to their own failures) and leave forex. A broker who makes money via commissions wants winning traders so that they stay in the game and continue to make the broker money.

I really don't understand the logic of making (decent) brokers out to want traders to lose. Why would they? A winning trader can provide commissions for many many years.
  • #34
  • Jul 22, 2019 1:45am Jul 22, 2019 1:45am
Quoting HairyHarley
Brokers need a supply of new clients because a large percentage wipe out their accounts (due to their own failures) and leave forex. A broker who makes money via commissions wants winning traders so that they stay in the game and continue to make the broker money. I really don't understand the logic of making (decent) brokers out to want traders to lose. Why would they? A winning trader can provide commissions for many many years.
You are talking about good broker but you may know market maker brokers are with a different terminology!
  • #35
  • Jul 23, 2019 5:11am Jul 23, 2019 5:11am
IF the broker takes the other side of your trade then it's better for them to have LOSING traders and vice versa. Generally speaking though, if traders keep on winning then they will just continue to trade which means more business for the broker.
Monkey See, Monkey Do
  • #36
  • Aug 22, 2019 12:01am Aug 22, 2019 12:01am
Quoting GeorgeBaile
{quote} You are talking about good broker but you may know market maker brokers are with a different terminology!
good brokers really difficult to found right now , because so many brokers right now in online and most of them are found to be scams, before investing more , we can use micro account to see the broker performance.
  • #37
  • Aug 22, 2019 12:58am Aug 22, 2019 12:58am
Depends on the type of broker you are trading with
  • #38
  • Aug 23, 2019 8:40am Aug 23, 2019 8:40am
Quoting Felix.me
Depends on the type of broker you are trading with
That’s the story! Market maker brokers are providing service with a different point of view when the regulated brokers trying to provide a fair trading environment!
  • #39
  • Aug 26, 2019 9:36am Aug 26, 2019 9:36am
Quoting DwainUK
I prefer to use a commission based broker, because I will be sure, that they will not do something against my pocket ; If I win, they will win also
How do I know if a broker is really a Commission based broker or not? Any list of Commission based brokers on FF? Is ICMarkets a Commission based broker?
  • #40
  • Aug 27, 2019 4:21am Aug 27, 2019 4:21am
Logically - I would put it at around 70 win - 30 lose from the broker's standpoint.
they have to have you win enough to keep you going but not so much as will have you making them go broke in 48 hours.
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