Forex lesson #6. Part 1. Introduction. Insight inside Forex brokers’ creative minds: Innocent ways to outsmart a client.


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Every few weeks a new Forex broker joins the market offering online currency trading.
Some brokers do business in straight forward, honest way, while others try to “invent” additional rules to maximize company gains.

Think this way, a broker doesn’t come into the market to lend you and me money (by leveraging accounts) so we can trade Forex. Brokers come to make money.

I won’t dive into details on how brokers make money by regulated well known rules. I’m going to talk about OTHER rules, invented by Forex brokers. These “other” rules are also fair, nothing illegal. Other rules make Forex brokers richer.
Illegal brokerage practice remains illegal and is prosecuted by law. Again, we are talking about legal methods of making extra profits on clients (at clients’ cost), those that not every trader is able to spot out.

These rules are about:

- platform time zones;
- spread policies;
- negative interest rollovers;
- position time limits;
- affiliates commissions.

This topic will consist of 6 separate publications (just because it is too long), where we’ll talk about each of these rules in details.

My friends, let’s clarify the last important thing, before we move on:
I’m not trying to make you suspicious about brokers and their practice. I simply want you to be aware.
I’m not trying to teach you to hate brokers or stop respecting them; after all, it is you, who signs a contract with them. Some brokers choose not to overload clients with tons of details about trading; it is your duty to ask a broker about the rules and terms before you sign a contract and begin trading.

** Forex Dark Lord **

One Comment to this post

  1. well sometimes brokers are just taking the opposite of your trades, so will be your ENEMY !!

    be carefull by selecting a decent broker, preferrable an ECN or STP , which have no dealingdesk and put your trades directly to the liquidity provider. spreads will be lower even when you additional pay commision.

    and finally get you rakeback (as well known in poker) or cashback . best provider i found:
    cashbackforex.info

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