I recently started working at a new job (Working, but hopefully saving and building my capital so that I will eventually be able to trade full time). At this new office building there is a forex broker, this is not a major broker like the ones who advertise on forex factory or other blogs or financial news sites, in fact it looks like one of the smaller brokers. I won't reveal the name because, its not necessarily fair to the company or forex factory (though I may reveal later on, the reviews on forex peace army trash the place). From the looks of it, it seems like a 20-30 person operation. New York office space so its not cheap, taxes and expenses too.
Anyway, thats a short background. I was recently thinking how many clients and how much money needs to be traded by those clients for this business to be profitable?
Its would seem to me that at a certain point its hard to find more suckers(95% of traders) to just lose their money. Assuming from the site that this place uses a dealing desk they are probably killing traders. I have also seen some things on FPA and their own site mentioning a minimum stop loss, that looks like they are practically stop hunting suckers accounts.
So how many clients (suckers or pros), trades, and money do you guys think needs to be traded for a broker like this to make money?
What about a legitimate broker?
I have my estimates, post yours and we'll compare.
Anyway, thats a short background. I was recently thinking how many clients and how much money needs to be traded by those clients for this business to be profitable?
Its would seem to me that at a certain point its hard to find more suckers(95% of traders) to just lose their money. Assuming from the site that this place uses a dealing desk they are probably killing traders. I have also seen some things on FPA and their own site mentioning a minimum stop loss, that looks like they are practically stop hunting suckers accounts.
So how many clients (suckers or pros), trades, and money do you guys think needs to be traded for a broker like this to make money?
What about a legitimate broker?
I have my estimates, post yours and we'll compare.