Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

How many of us are already making profit consistently? 49 replies

The Typical Forex Profit making Cycle 5 replies

Tier1 Trading Objectives … Speculative Profit making or Task achievement? 1 reply

Making Profit with Low Volatile Pairs 0 replies

Who is making a profit? 12 replies

Attachments: Who is making profit in the forex market?
Exit Attachments

Who is making profit in the forex market?

Quoting Pipsalon
This is a question I have been thinking about for a while. But I don't know the answer to it. (Maybe it's because I am still a rookie) Who earns money in the forex market? When I make a profit of 40 pips. Does this automatically mean that someone else lost 40 pips? Or 4 other people together lost 40 pips... Is it possible that everyone who is trading the market is making overall profit? Or is the total profit+losses of all traders (banks, funds, retail traders... etc.) + broker commission= 0
hi​
i dont think it is a zero sum game as they say because new liquidty is are added every day any moment
focus while relaxed to see better
Quoting Atokys
{quote} So they can make the spread? {quote} Well, if a broker constantly widens their spread all the time with the intention of making clients lose money won't the broker lose out to other brokers who provide a more competitive spread? {quote} I would think that they would be out of business very soon. {quote} O-O-OK...
Don't worry about brokers going out of business too soon, if they've earned a bad reputation. They can still get more clients. How? Very simple...Since the broker already earned like thousands or even millions of dollars from his clients, he can use the money in opening a new broker under a different name in another country...I mentioned earlier that it would cost him around 30-40K to get a white label...The broker could just buy a new white label with a different name...And here we go again. Or the broker can be acquired by a bigger broker (mergers and acquisitions)...Example? When FXSol reputation got very bad in their last days and found it very difficult to get new customers, they struck a deal with Gain Capital to acquire them, and Boom!!...A new mega scam broker is now even more powerful than ever before...And it never ends, my friend
Simplicity is the key to brilliance.
Quoting Inceptionist
{quote} Don't worry about brokers going out of business too soon, if they've earned a bad reputation. They can still get more clients. How? Very simple...Since the broker already earned like thousands or even millions of dollars from his clients, he can use the money in opening a new broker under a different name in another country...I mentioned earlier that it would cost him around 30-40K to get a white label...The broker could just buy a new white label with a different name...And here we go again. Or the broker can be acquired by a bigger broker...
Oh dear. With all this in mind, why do retail traders even bother with scalping?
Quoting Forexia
{quote} Forex Peace Army. http://www.forexpeacearmy.com/

Never trust forexpeaceatmy reviews. Lots of the 5 stars are left by dealers' employees, friends, etc.

Global prime is a perfect example. Many reviews are left by the salesman jerrey himself or his freinds because those reviews always mention jerrey and his team. Why would a retail trader calls a guy's name from his dealer and praise him?? It is very suspcious activity. Global prime has highest review score on forexpeacyarmy but it is just a small bucket shop that nobody has heard of.
Quoting orabi
{quote} hi​ i dont think it is a zero sum game as they say because new liquidty is are added every day any moment
Can you explain this?
Quoting Pipsalon
{quote} Can you explain this?
​
Hi sir yes i can explian
lets imagine that the market size is 4 t. (trillion) in size ,this is are the size of equity circulating in a given period .
then comes new traders which range from big ones to small one that relocate there funds ,money to trade the market ,every day each moment we have fresh new liquidty that is are added to market venues and we all try to win it so for traders like us it is a positive sum game when we win.
if we look at the bigger picture .central banks are printing adding papper which enter market and play a rule in it .
so saying that we are in a sum of zero game is fact if only we end in even no win ,gain no loss ,so from my prospective as a winner last week
i gained 5% and for me it is a positive sum game or (end)for last week.
Have a nice day sir
focus while relaxed to see better
Quoting mry2001
{quote} Never trust forexpeaceatmy reviews. Lots of the 5 stars are left by dealers' employees, friends, etc. Global prime is a perfect example. Many reviews are left by the salesman jerrey himself or his freinds because those reviews always mention jerrey and his team. Why would a retail trader calls a guy's name from his dealer and praise him?? It is very suspcious activity. Global prime has highest review score on forexpeacyarmy but it is just a small bucket shop that nobody has heard of.
The review left by the Global Prime staff has already been caught and removed from the overall review for that company. And quite honestly, this can happen at any review site for anything. And the ratings and classification of scam brokers on the forexpeacearmy.com site is still pretty accurate.
Make your losses in demo. Earn your profits live.
  • Post #48
  • Quote
  • Edited 2:17pm Sep 12, 2015 1:59pm | Edited 2:17pm
Quoting Atokys
{quote} Well, if a broker constantly widens their spread all the time with the intention of making clients lose money won't the broker lose out to other brokers who provide a more competitive spread? {quote}
Yeah but your position is already open with them and you are stuck with their prices. Other brokers might display better prices but how are you going to close your trade opened with one broker with the price of another broker? LOL

Like I told you, the forex market is NOT an central exchange like stock exchange where you automatically get access to all of the prices posted by all of the dealer/brokers/other clients and your order gets matched with the best price in the exchange. No, when you open an account with a MM broker, you are dealing with that MM broker ONLY ONE on ONE and you basically take whatever price it gives you for all your trades.

You need to open account even just a demo account with a broker and starting trading otherwise you won't have an idea of what people are talking about here.
Make your losses in demo. Earn your profits live.
Quoting Forexia
{quote} Yes since according to Spotware, NO plug-in's are allowed BUT a MM broker can still use it to trade against you just with no requoting, delayed execution, or *covert* stop-hunting (they can still stop-hunt you on cTrader but they just won't be able to hide it to cover their tracks like with the Virtual Dealer Plug-in; the stop-hunting spike will be visible on the chart in cTrader). And the broker can still widen the slippages a.k.a their spread on cTrader to screw you albeit with much faster execution speed.
thanks .. if we cant trade with prime broker because of lack of the capital
why not trading fx futures ?
Quoting fx75
{quote} thanks .. if we cant trade with prime broker because of lack of the capital why not trading fx futures ?
I thought of fx futures and they DO have very similiar chart pattern as the spot BUT it's EXTREMELY low volume. Its trading volume is like 1/5 of the spot so not sure if the profit potential is there.
Make your losses in demo. Earn your profits live.
Quoting Forexia
{quote} The review left by the Global Prime staff has already been caught and removed from the overall review for that company. And quite honestly, this can happen at any review site for anything. And the ratings and classification of scam brokers on the forexpeacearmy.com site is still pretty accurate.

i use thier reviews but with carefull prospective i believe that the site owners have agenda in it so i try to filter reviews and look for more reviews from other sites​
have a nice day sir please
focus while relaxed to see better
Quoting Inceptionist
{quote} Don't worry about brokers going out of business too soon, if they've earned a bad reputation. They can still get more clients. How? Very simple...Since the broker already earned like thousands or even millions of dollars from his clients, he can use the money in opening a new broker under a different name in another country...I mentioned earlier that it would cost him around 30-40K to get a white label...The broker could just buy a new white label with a different name...And here we go again. Or the broker can be acquired by a bigger broker...
Yeah and Gain Capital is the biggest casino brokers out there even. There is a thread in the "Brokers Section" on FF started by this guy who traded with Gain Capital and made $200K in profit and Gain Capital forfeited all of it accusing that trader of "price latency arbitrage" (a favorite excuse by those casino brokers to not let you withdraw your profit even when you've made money with them) and the trader complained to the FCA in UK. And guess what? FCA sided with Gain Capital.

It's so disappointing that retail brokers have become just forex scammers. I guess the old adage is true, when something is too good to be true, it REALLY is too good to be true. Think about it, if we can REALLY make that much profit to get rich quick like they promised, WHY would those brokers let us walk away with all those profit when they can be the ones pocketing all those profits especially when they have invested 10's of K's of money and we've only invested like 2K of our trading capital? LOL
Make your losses in demo. Earn your profits live.
Quoting Forexia
{quote} I thought of fx futures and they DO have very similiar chart pattern as the spot BUT it's EXTREMELY low volume. Its trading volume is like 1/5 of the spot so not sure if the profit potential is there.

Futures are better in confidence matter as only trusted brokers can offer them ,i wish i could trade thier contracts but they are prohibited from my islamic prospective​
plus i did not do an effort to trade them look for who offer them. but i believe they are better from a safty prospective .
please have a nice day sir
focus while relaxed to see better
Quoting Forexia
{quote} The review left by the Global Prime staff has already been caught and removed from the overall review for that company. And quite honestly, this can happen at any review site for anything. And the ratings and classification of scam brokers on the forexpeacearmy.com site is still pretty accurate.
I agree that scam alert folder is useful. Rating does not mean anything however.
Quoting mry2001
{quote} Never trust forexpeaceatmy reviews.
I agree for various reasons.

Quoting mry2001
{quote}
Why would a retail trader calls a guy's name from his dealer and praise him?? It is very suspcious activity. Global prime has highest review score on forexpeacyarmy but it is just a small bucket shop that nobody has heard of.
Well, they're very prominent on another FX forum and well known by their names there AND supported by the owner of that forum. It's quite possible that most of the reviews are from people on that forum. Besides that, if you open a demo account with them, your welcome email comes from Jeremys email address.

BTW: i'm not trading with them, I felt their offer was not quite what I was looking for for a couple of reasons. So ... don't get me wrong, I do not recommend them, I'm just saying that's perhaps not the best example for why reviews are to be taken with a bucket of salt.
Quoting Forexia
{quote} Yes since according to Spotware, NO plug-in's are allowed BUT a MM broker can still use it to trade against you just with no requoting, delayed execution, or *covert* stop-hunting (they can still stop-hunt you on cTrader but they just won't be able to hide it to cover their tracks like with the Virtual Dealer Plug-in; the stop-hunting spike will be visible on the chart in cTrader). And the broker can still widen the slippages a.k.a their spread on cTrader to screw you albeit with much faster execution speed.
Hmm, from a former IT experts point of view that brokerage client software and the server component is merely a bridge - connecting the trader with some matching engine or so. Maybe Spotware doesn't provide any hooks for plugins but the broker does, in the end, control the data thats going in and out so he can still rob your money. It all comes down to: if they WANT to cheat on you, they can do it. Your only protection is indeed a broker who has no incentive of you losing but actually quite the opposite because winning traders make more volume.
Quoting Forexia
{quote} Yeah and Gain Capital is the biggest casino brokers out there even. There is a thread in the "Brokers Section" on FF started by this guy who traded with Gain Capital and made $200K in profit and Gain Capital forfeited all of it accusing that trader of "price latency arbitrage" (a favorite excuse by those casino brokers to not let you withdraw your profit even when you've made money with them) and the trader complained to the FCA in UK. And guess what? FCA sided with Gain Capital. It's so disappointing that retail brokers have become just...
hi sir​
any one that believe he should make profit more than safty limits in market is a scam in his own prospective ,we are at a high way and there is speed limit
i like to use small leverage gain slowly more pips better than more risk .if you end 10-20% profit a month ,10-20%of aother traders wining up to central banks 10-20% of big central banks wining ,in the end we all are happy ,believe me i am not looking for aiming to more than 10-20% per month
if my capitial grows bigger i may aim for less ,safty of my investment is my and will be still my first piriorty .
please have a nice day sir
focus while relaxed to see better
whilst I read all this it makes think how horrific it all is...... you have to keep in mind that a broker makes money through number of clients. The general consensus is that there are far more losers at this game than winners so the more clients you get as a broker the more losers you have which more than compensate for the few which regularly make money. You only ever read the horror stories on the net remember, it makes a good read. You rarely hear of the 1000's of traders that are actually quite happy regularly making money and withdrawing. Don't get me wrong I agree with a lot of what's been said here but I think that you have to keep a level head on the conspiracy theories. Ive read so many stories about people being refused to be paid out and losing trades for no apparent reason but the further you delve into some of these stories you realize that there is often a lot more to it and its not just a plain scam by the broker. Again as has been said totally ignore ratings and don't google broker 'x' problems, because they will exist for nearly all brokers. Bigger is better in my opinion, they will have less interest in your money alone and I personally like to spread my money around a little.
Quoting Spoon138
whilst I read all this it makes think how horrific it all is...... you have to keep in mind that a broker makes money through number of clients. The general consensus is that there are far more losers at this game than winners so the more clients you get as a broker the more losers you have which more than compensate for the few which regularly make money. You only ever read the horror stories on the net remember, it makes a good read. You rarely hear of the 1000's of traders that are actually quite happy regularly making money and withdrawing....
HI SIR
I AM SURE THAT EVEN THIFS NEEDS HONESTY .
for my own self rest of consciousness i have spread my trading knowledge and trading system also .
i traded with several brokers and i am positing my experience with them .
i come from a wealthy family to an extent that makes me have the joy of trading my bucks .
i believe that mind ideas what does rule your life yes there are conspiracies but you have ways to protect your self as i know trade with many brokers.
the idea of the whole market being a conspiracy can not be rolled out so better looking for a safer investment if you not well prepaired to the idea of losing.
please have a nice day sir
focus while relaxed to see better
Quoting Spoon138
Don't get me wrong I agree with a lot of what's been said here but I think that you have to keep a level head on the conspiracy theories. Ive read so many stories about people being refused to be paid out and losing trades for no apparent reason but the further you delve into some of these stories you realize that there is often a lot more to it and its not just a plain scam by the broker.
Which is indeed one of the biggest problems with reviews. Whenever I see people complaining about slippage of a magnitude I've never seen in a lot of hours of trading I wonder which instrument they traded and at what time. Then there comes another problem like scalping small movements while living in the Netherlands using a broker with servers somewhere in Oz or the USA which inevitably will lead to a higher roundtrip time. There is usually a lot of information missing in these reviews.
BTW: if "brokers" write their on review (which they certainly do), they'll also write "reviews" about their competition and it won't require a genius to know how these will look like.
0 traders viewing now