FOREX truth

[FXMart]

First of all, a few notes:

1) This is NOT a recommendation to do anything

2) This is NOT an advertisement, I am NOT an IB, I am a TRADER

3) I learned a lot from FOREX forums so I feel a responsibility to give something back

4) This is just a warning based on my very own experience that I will send across forums - take it or leave it

 

My main message to YOU is that the vast majority of brokers are robbing traders every single business day! And YOU are probably also one of the robbed!

 

A) Practically any broker that offers you deposit bonuses, big competitions etc. will NOT ever let you make any money due to direct conflict of interests as that type of broker is usually a market maker. Such a broker opens trades against you. Really I know what I am talking about, one of the market makers already canceled my profitable account and told me that I am too much profitable!

Those are robbers number 1.

 

B) Almost any other broker is NOT transparent (expect a couple of them). Their costs on majors are somewhere around 0.05 - 0.3 pips depending on broker possibilities and they charge you at least 1 pips, maybe 1.5 pips, maybe 2 pips or even more!

Don't forget execution costs (slippage) which is at least 0.5 pips to even tens of pips! Depending on qualities of the broker, his liquidity providers, market situation, trade volume etc.

Those are robbers number 2.

 

Just count for yourself. If your trading costs on EURUSD are 2.5 pips (1.5 pips spread and at least 1 pips slippage) and you would trade 5 lots per trade, 20 trades per day - your expenses after one year of trading = 660 000 USD

 

Frankly, I was introduced to a very reliable broker with banking license by an IB partner of the broker. I feel responsibility to mention him as he extremely helped me on my way through FOREX world. He provided me very individual institutional type of account where I trade with true interbank market spreads and the broker charges a commission - that's what I call transparent trading! Also the execution is great as the broker has a lot of liquidity providers - major banks. My trading costs on EURUSD are with average slippage counted 0,45 pips. So 5 lots per trade, 20 trades per day - expenses after one year of trading = 118 800 USD

 

That's over 540 000 USD of difference! Huge mathematical disadvantage in the case of broker with 2.5 pips costs!

I will not write more concretely about anyone due to advertisement conflicts.

 

It's just beginning from my side.

[gacha]

tight spread and overall trading cost, traders should put those both together, some brokers offer 0 spread, but in reality the charge much more commision per transaction, be pay attention upon their trading condition. and surely overall trade consist overall cost, some traders often underestimate their own transaction cost. for example i had monthly total order at average 150 transaction on EURUSD, at first i use non ecn broker service, 2 pips spread on eurusd which means, 150 x 2 pips, 300 pips monthly cost in total, as comparison with my current account at armada markets, 0.3 spread charged on eurusd, overall fee mark up cost are 0.8 pips x 150 trades equal to 120 pips monthly cost. have anyone ever consider how spread cost your trade. now i have additional 180 pips profit while use ECN brokerage service. before start and pick up your desired trading style, better consider how much it cost, what benefit and what the risk. spread practically our transaction cost, which means spread does matter with any trading system.

[martin1713006299]

maybe under usa rules,it cannot be posible ,but EU,UK and asia broker its waste of time and money, trading futures contracts it will right solution