When I first started in this business I naively thought that it would be me against the market.
Fast fowarding 5 years, now I se that it is first me against myself, than me against the market and last but not least me against my broker.
For a bunch of reasons your broker is not at your side. Quite the contrary they compete against you in the market meaning that they will take your money just like any other market participant would.
Now that said, lets dream a little.
If you could design the " modus operandi" of a broker what the model would look like?
I mean, something that would be fair not only for you, but also for the broker , so at the end of the day you could call your broker a partner not competition.
Well my model would looks more or less like this:
A- I would be honest with my costumers and let them decide what kind of game they want to play.
For this I would design two products. One would be cheap with tight spreads no comission, low opening balance, high leverage etc. I would make my costumers very aware that when trading in this platform they could face slippage, disconnections, recotes etc. Than I would make my money as a broker trading against them, chasing their stops, widening spreads, freezing their platform, etc, etc and etc.
I would keep my costs low based on crappy servers, a bunch of undergrad on my IT team, idiot tech support and no quality control at all
B - My second product would be based on high performance servers, rock solid platform and real experienced professionals in all departmemnts like tech support, IT, development etc.
I would make my money with spreads not lower than 5 pips and on top of the spread I would charge 10 bucks comission per transaction.
That platforn would be real time with the market, no slippage, no recotes and no disconnections or instabilities.
I would let my costumers trade the news based on a fair and well defined model, where the trader would be able to open positions untill 5 minutes before big news. Than the platform would close for trades and would re open 5 or 10 minutes after the news. This way you know on advance how the platform behaves and if you decide to participate you will have no surprises.
Same thing for scalps etc all would have pre determined rules. You play if you agree.
I see all around in forums over the net that people are tired of hypocrite brokers claiming to be at your side just to go and ripp you off.
The first broker to come clean and desighn 2 or maybe more levels of products and price structures where the trader knows what to expect will bankrupt the competition.
Fast fowarding 5 years, now I se that it is first me against myself, than me against the market and last but not least me against my broker.
For a bunch of reasons your broker is not at your side. Quite the contrary they compete against you in the market meaning that they will take your money just like any other market participant would.
Now that said, lets dream a little.
If you could design the " modus operandi" of a broker what the model would look like?
I mean, something that would be fair not only for you, but also for the broker , so at the end of the day you could call your broker a partner not competition.
Well my model would looks more or less like this:
A- I would be honest with my costumers and let them decide what kind of game they want to play.
For this I would design two products. One would be cheap with tight spreads no comission, low opening balance, high leverage etc. I would make my costumers very aware that when trading in this platform they could face slippage, disconnections, recotes etc. Than I would make my money as a broker trading against them, chasing their stops, widening spreads, freezing their platform, etc, etc and etc.
I would keep my costs low based on crappy servers, a bunch of undergrad on my IT team, idiot tech support and no quality control at all
B - My second product would be based on high performance servers, rock solid platform and real experienced professionals in all departmemnts like tech support, IT, development etc.
I would make my money with spreads not lower than 5 pips and on top of the spread I would charge 10 bucks comission per transaction.
That platforn would be real time with the market, no slippage, no recotes and no disconnections or instabilities.
I would let my costumers trade the news based on a fair and well defined model, where the trader would be able to open positions untill 5 minutes before big news. Than the platform would close for trades and would re open 5 or 10 minutes after the news. This way you know on advance how the platform behaves and if you decide to participate you will have no surprises.
Same thing for scalps etc all would have pre determined rules. You play if you agree.
I see all around in forums over the net that people are tired of hypocrite brokers claiming to be at your side just to go and ripp you off.
The first broker to come clean and desighn 2 or maybe more levels of products and price structures where the trader knows what to expect will bankrupt the competition.
