I'm Jeremy, one of the co-founders of https://www.globalprime.com/ and I've been a Forex Factory member for 10 years now.
If you are lucky enough to already be trading with us then you'll know what we are about. We've been in the game for almost ten years and have some of the happiest clients out of any broker worldwide. Check out our Forex Peace Army reviews (4.7 out of 5 stars from over 320 reviews) here: https://bit.ly/31UwOkg
I recommend watching this interview with Etienne & I - we go through how brokers operate, the implications for the industry and our plans for the future. You'll get a better understanding of who I am and why Global Prime fights in your corner.
Is your broker being honest with you? Most likely, no.
Over the last decade we've all seen brokers use terms like ECN, STP, NDD to imply that they don't profit from client losses when in actuality most brokers have been B-booking you guys until the cows come home. Yes even the most "trusted" names you know and love.
This means they profile losing clients into a separate book and internalise their trades instead of sending it to the actual market. This enables the broker to profit from their clients losses and incentivizes the broker to bring on "dumb money" with 500x leverage and purposely low stop out levels to extract as much money from their clients deposits.
Don't believe me?
"During the calendar year 2018, ASIC said issuers of binary options and CFDs received gross trading revenue of $2 billion, of which $490 million was from binary options and $1.5 billion from CFDs. These numbers are roughly equivalent to customer losses, given the all or nothing nature of the bet." https://bit.ly/39M7zoU
But wait, I thought all the big name ASIC regulated brokers were ECN / A-book? What gives?!
B-books have huge implications to traders and the industry and it's not a simple thing to unpack. So much so that we had to create a ten part YouTube series on the issue as you deserve to know the truth about what's actually happening out there.
Episode 1: How Forex Brokers Make Money https://bit.ly/3g1eLBx
Episode 2: Forex Brokers Profit from Client Losses https://bit.ly/3sWTnB1
Episode 3: Dealing Desks Exposed! https://bit.ly/31Ta0BK
Episode 4: REAL liquidity VS B-book ! https://bit.ly/39Q5zvB
Episode 5: The REAL REASON Brokers Offer 500:1 Leverage https://bit.ly/3cVP3MP
Episode 6: Why Forex Brokers Profile Clients https://bit.ly/3cWX2ZT
Episode 7: Market Making vs B-Books https://bit.ly/37DfwLx
Ask yourself this: Is it important for you to trade with an honest broker?
I can't imagine anyone would answer no to that question. Unfortunately until now it's been almost impossible to tell if your broker is telling you the truth when you ask them if they are ECN, or profit from your losses, or run a B-book.
The Seven Deadly Broker Questions - How to Tell if Your Broker is B-booking you
The following questions can be asked of your favorite broker. If your broker is honest they should be able to answer you easily.
There is an extremely high likelihood that your broker will refuse to answer you. Or they will ask why you are asking them these questions. Or they will stall you.
If you aren't able to get answers from your broker then they are HIDING something from you and the community deserves to hear about it. Run a million miles and find a broker that can actually stand by their profit models and cares about you enough to give you an honest answer to very straightforward questions.
Tip 1: Must be sent to the compliance department of your broker
Tip 2: You must demand a YES/NO answers for this to be effective.
1. Do you profile your clients into separate books (ie A book / B-book) based on their profitability? YES/NO
2. Can you categorically state that you DO NOT profit from client losses through warehousing client trades? YES/NO
3. Do you notify clients when you switch them from A to B book ? YES/NO
4. Can your clients increase their leverage without any assessment? YES/NO
5. Do you provide some form of post trade transparency to demonstrate which liquidity provider filled the clients trade? YES/NO
6. Do you allow profit share from b-book with any IBs or relationships? YES/NO
7. Are you willing to disclose how much money you earned from client losses in 2020. If yes, how much? YES/NO
How does Global Prime answer these questions?
Easy - with effortless ease. Because we have nothing to hide.
1. No, we don’t have a b-book.
2. Yes, we can state that we don’t profit from client losses.
3. No, we don’t have a b-book.
4. No, clients need to apply with a detailed assessment for higher than 1:100 (max 1:200) and we have restrictions if higher leverage is granted.
5. Yes, it shows which liquidity provider filled the trade, how long each leg took to execute, the full order book at the time and tick chart showing where the liquidity providers were pricing at the time.
6. No, we don’t have a b-book.
7. Yes, Zero.
You deserve to trade with a broker that is on your side and wants to see you win. You deserve to be with a broker that is honest about their profit models. I'm not here to convince you to join GP - there are different brokers for different traders. I'm here to show you that everything is not as it seems in Retail Forex & CFDs land.
If we have to be the lone soldier in the industry working for better conditions for retail clients then so be it.
But please, see for yourself. You now have the tools to.
Transparency: We offer a public Discord community
We offer anyone access to our public Global Prime Discord community.
You can imagine if you ever ran into an issue with us you could display it on the Discord for all of our clients to see. This holds us accountable to you.
We run competitions, learn from our community when they have suggestions and talk markets and trading with you guys all day long.
Wouldn't it be nice if your broker did the same? Join the conversation here: https://www.globalprime.com/discord/
Transparency: Automated Trade Receipts
Automated Trade Receipts to verify which Liquidity Provider filled your trade (and more!)
Automated Trade Receipts is a way of showing you that we do not run b-books or profit from your losses.
They are extremely detailed showing which liquidity provider filled your trade, slippage if any, execution times, spread, the full order book and mark outs!
It gives you the tools and information to hold us accountable. If our performance isn't up to par, you'll know about it first.
These trade receipts promote the removal of conflicts of interests and gives you the confidence to focus on your trading.
Check out the trade receipts here: https://www.globalprime.com/trade-receipts/
Transparency: How we make money - in plain English
Unlike B-Book brokers, Global Prime does not make money off client losses.
We have no human discretionary traders and we do not make hedge execution decisions based on client trading behavior or account profitability.
Global Prime does not:
- Run a B-book or make money from client losses.
- Receive any form of profit share from a group entity relating to our clients trading losses, i.e. no other company runs a B-book on our behalf.
- Have arrangements with trading counterparties to run a B-book on our behalf.
- Make proprietary trades or hold proprietary risk positions.
It's all over here if you'd like to see more:
My personal opinion is that if B-books didn't exist for the last 2 decades then the Forex & CFDs space would be completely different and wouldn't have had to be so over-regulated as we've seen in recent times. "Kill Your Client" style brokers like ForexCT who fleeced millions on their b-books would never have existed. Super high leverage would never have been offered as the counterparty risk is too high.
Brokers would be fighting for who had the highest percentage of profitable clients rather than Super Saiyan Goku churn-and-burn marketing machines.
The focus would have been on actually helping you, the client, instead of extracting as much profits out of your deposits. Perhaps the percentage of profitable clients would be much, much higher.
We believe in a world where the trader comes first and we intend to lead by example by showing our clients and the industry as a whole that we can do much, much better than what the status quo is.
If B-Bookers want to continue looking at their clients deposits as food then they should at least be made to disclose it. And right now you are definitely not getting what you think you are.
I'm looking forward to riding this amazing journey of FX alongside you guys for many years to come.
Together, we can do better.