Disliked{quote} You seem to be confused about the business model of Forex brokers. All Forex brokers will trade against their clients to hedge the trading positions. You don't understand how Forex trading works at all. As a Forex broker, you will hedge all positions. If the average percentage of winners is 20% and 80% are losers, then you hedge against the losers. There is no ECN or "direct market trading" for the average retail customer.Ignored
Hedging positions is fine. But taking actions intentionally designed to make the trader lose is not.
Case in point: FXCM. Several years back I was using a popular commercial MT4 robot called "FAP Turbo" that was making a lot of people money. I had several accounts with multiple brokers and FAP Turbo was profitable on all of them except for FXCM. I did some detailed analysis of FXCM's data, comparing it closely against the data of other brokers. I discovered that during the two hour period that FAP Turbo was active FXCM was modifying their data on the pairs that FAP Turbo traded. It was very plainly visible in the graphs I prepared in Excel. There was no question that FXCM had configured their servers specifically to make FAP Turbo lose. I closed my account with FXCM. What I should have done is sent that spreadsheet to the CFTC. Several years later the CFTC fined FXCM $7 Million and banned them permanently from the USA for trading against their clients (details are easily found on the web).
I usually ignore people that cry "broker manipulation" as most brokers are honest and its common for poor traders to blame their lack of success on anything but themselves. But this was one clear case where the broker really was dirty.
Sure I have a trading plan. Buy low. Sell high. What's yours?
1