None…
Let me save you now. Brokers in FX are all 100% counter parties. Here is how it works.
A broker buys an electronic feed or price data and what is called liquidity but really magic money… That's it…fake money at say $15 per 1 million lots traded per client, this means for every 1 million lot you trade it costs the broker $15 of liquidity… You will be charged a spread average 2 pips that's $200 for that million. Money, money, money! Huge mark up.
It doesn't stop there… Some charge a commission plus a smaller spread averaging 3 pips, so even more money, they claim that well they pass your orders on… Bullshit!! Now here is the fun bit… Since all the liquidity providers are all lining up to sell magic money to the broker he can choose who he buys from or pass your order too as it is called (nothing is passed). Okay… It's still not over. You pay for the trade, you are happy, then the market goes against you lose $2000 your margin + spread + commission + Swap. This could add up to $400 extra or more. A grand total of $2400. Let's say you win $4000… $4000 - spread - comm - Swap this could be even more a deduction of up to $600 due to spread and swap manipulation and if you have to convert to another currency then you will have exchange arbritage so a grand $3400, it is impossible for you to generate short-term profit in these conditions consistently. Long-term gains are possible but at huge costs. E.g Swaps will get more expensive as interest rates diverge from the Dollar. So if you hold a trade you will pay daily 1 pip average so $100 daily say the market trades sideways for 30 days and drops on 1 day for 100 pips, that's $3000 of swap cost, on a $10000 profit that's 30% cost. That's not including spreads. In a betting game this is not the greatest environment as risk is also a cost which is in most cases just as big as potential gain. Now ask yourself how can a broker exist that wants you to profit? This means a reduction in some of their revenue that as you can see goes directly to them as your counter-party.
Solution is to trade on an exchange. CBOT, CME, etc. There are costs here too but here you trade with the market. So you can find arbitrage and other ways to profit. E.g. Some markets don't have spreads, let's take CL or Crude Oil futures … You can buy say 1 contract of 1000 barrels at $100 a tick, this contract will cost you $6 average with no spread you can sell the contract for 1 tick profit, this will mean a net gain of $94, since the exchange merely facilitates trade it only charges a fee and has no incentive to limit your profits…This will put them out of business, this also means arbitrage strategies can develop. The key to make money on an exchange becomes capital and good risk management. I found this program on Udemy that will help with understanding Market Profile to trade futures… Useful… Market Profile: Learn To Trade Professionally | Udemy
Don't waste anymore time with these guys…There are Currency futures by the way if you really specialise in FX.
إخلاء المسؤولية: الآراء الواردة هنا تعبر فقط عن رأي الكاتب، ولا تمثل الموقف الرسمي لـ Followme. لا تتحمل Followme مسؤولية دقة أو اكتمال أو موثوقية المعلومات المُقدمة، ولا تتحمل مسؤولية أي إجراءات تُتخذ بناءً على المحتوى، ما لم يُنص على ذلك صراحةً كتابيًا.
اترك رسالتك الآن