FX Broker 3 Hidden Agenda & 4 Key Criteria To Chose The Best – Part (1)
Beware Some FX Brokers Are Your Enemies, Be Wise To Chose The Right One.
Ethics of FX broker often reminds me of the word “Conspiracy”. When it comes to Conspiracy, New World Order is one of the most popular conspiracy theories plotted by secretive society such as Illuminati featured in the movie “Angels & Demon” and Freemasons. Such order is updated by the world super elites in regular gatherings like Bilderberg conference, where David Rockefeller, Sr chairs in many occasions. BTW, over 70% of world wealth is said to be controlled by Illuminati of which core families are Rothschild & Rockfeller. One of their priorities in the agenda of such gatherings is reducing world population to the level they feel comfortable (, which is said to be around 1 billion). And many plots have been implemented in various ways eg, war, virus epidemic such as AIDS, SARS and recent outbreak of Ebola to attain it. See the development of Ebola (source AFP), quite scary, isn’t it? If it’s true, much worse than Hitler’s act. Anyhow, what we we should admit is that the Conspiracy / Hidden Agenda are more or less happening anywhere behind the scenes. As said at the beginning, such hidden agenda is obvious in certain FX broker, which you might have not been aware of. Although I can’t verify the truth of the New World Order, I can do for FX Brokers. So I will demonstrate which facts give you the obvious signs of the hidden agenda and why in this Part (1). Then, you will find how you can select the honest & best brokers that share the same interest / common goal with you in FX Broker Three Hidden Agenda & Four Essential Criteria To Chose The Best Part (2) ;
Forex Broker What You Need To Know
I need to talk about some disturbing facts related with specific type of Forex Brokers that have hidden agenda. I believe the best FX brokers are the brokers who are interested in Your Gain. Namely, those who adapt the system that earn money when you win, in other words not competing with you or squeezing from you. Unfortunately, there are many brokers that make ugly manipulation because of the conflict of interests with you as a customer. You as a vulnerable individual trader should recognize these hidden actions & their motives based on the profit structure. Then you will have right knowledge to select the right brokers.
I quoted several examples of existing brokers based mainly on their members’ testimonial or from various review sites. These are not verified by any 3rd parties, thus I show only their initial rather than the full name.
These May Sound Familiar, But Not Good Signs
If you often receive error messages like ‘re-quote’, ‘wait’, ‘trading context is busy’, ‘quote is accepted’, ‘request is in process’ etc. during your trading, you are trading against a classic questionable FX broker. These errors do not exist in the real market with real liquidity providers. The part of retail trading is still so small that lot size we trade is in reality nothing on FOREX $5 trillion daily market turnover. Every liquidity provider tries to execute any transaction instantly and as fast as possible. There are always a few traders on the other side who open an opposite position from you. So, if you do face the above mentioned errors it is because the software of the trading platform looks for the worst price which can be delivered to you, nothing else.
Have you Encountered mysterious freezing or disconnection when big market news comes in?
Example — “T”fx
When news are coming I’m getting a lot of disconnects, the platform is freezing with “T” fx ,this is a big problem because as you all know we need fast actions. I have an account with “T” for about 5 months and have had two problem with them;
- I had a buy pending order on eur usd the price went 10 pip after my pending order and did not hit it !!!! 5 minutes later the price flay 150 pips up I most say this most be my pips.
- one sale order been open , I never ever open it my ea never open it ,how I know because my robot is been set up to take profit and stop loss and this sale order been open with out stop loss and take profit .
I email them and answer my email with rejection they said that my ea opened the order. I been testing the robot on 5 different demo account and never had this problem with any one else but “T”fx. so they try all they can to keep you away from making money.
Have you ever experienced unbelievable surprise that your order wasn’t executed as you thought?
Example — “A”fx
Open an account with “A”FX 3 weeks ago, and use a signal provider (opens automatic in my account). I make a complaint about the opening of the orders that were closing with a difference of few minutes from my provider, and have an order that had closed negative in my account and I wanted a refund in the same amount of 442.00 euros, which to my surprise instead of them resolve the issue, was out of my account the amount of 4,725.00 euros, saying that orders were out of market. As seen here, if a customer complains about some order, so they take advantage of this to trick customers. They sent me email saying it was only arbitration, but to my signal provider they did not take the money , he have account in “A”fx too.
Your broker doesn’t allow scalping? Or you have to place SL (Stop Loss) & TP (Take Profit) order 5 or even 10 pips away from market price?
If so, they have dealing desk and they trade against you hard.
Example — “S”bank
“I used “S” for almost a year. right, the stop loss price never hit and would lost money, plus three times it started up it’s own buy a commodity automatically at unearthly hours of 5am!!!! and another time when there was no one home to place the ‘buy’! When i complained they said someone had done it from our computer and they could do nothing about it! We lost about 3000 us like that! Very risky/dangerous.”
Your broker doesn’t allow Expert Advisors (EA)? Or your EA is working properly on demo but on real account does not?
Example — “TK”forex
“Initially all seems good, but then applying my scalping strategies (I choose this broker for scalping) I slowly started to be kicked out of my trades also if my stop-loss where quite away. I use a visual EA to handle orders TP and SL. Just today I lost money on two short positions and I was stopped out with the price never reaching my SL level (the spread was at the moment about 1.5). Simply my order disappeared and been closed at a never reached price. Now I want to recover to reach a round number in my account then will close for sure the account. Stay away. I was already searching for a better broker. I have been systematically kicked out with abnormal slippage and my account is depleting.”
The Harsh Reality
Recognize the reality that broker is usually good as long as the trader is losing or trading with a small account. But what happens if you make some good profit? At that point you will ask yourself whether you chose the right broker because your broker may not pay you the profit or because you will suddenly experience some very strange behaviour when trading. From this point on, your account will be ‘flagged’ and the broker will turn on all add-ons and applications which will trade against you, like a few typical stories that the real seasoned traders actually experienced.
Example — “P”forex
I also began trading here starting with $2000, I made $6000 within a week. I was immediately switched to manual execution however I was still filled on a Canadian news release. I was 60 pips in profit and quite happy to close the trade there, but when I did, I was taken out with a false tic or fake price for a 9 pip loss. This happened four times so I closed the account.”
Example — “O”
I have traded fx with “O” for about two years now. At first, I had high hopes for them, everything seemed to be going fine, but like many others, I have become quite disillusioned. What do I think of them now? Here are just a few things I DON’T like;
- very unstable with frequent disconnections and lockups (not due to my systems!) particularly when you want to take a profit or enter an obviously profitable trade opportunity.
- Stops are being hunted (prices spiking sometimes nearly 100 pips!) more and more frequently
- prices will move to within a pip of my take profits and then reverse. This has happened all too often.
- terrible charting, so I use mt4 for charts
- When I report problems with the platform, they are routinely ignored, or treated as being insignificant
- some nice little features such as drag and drop stop loss and take profit orders, but does this outweigh all the cons of this increasingly unstable platform? I think NOT!
Unfortunatelyl, my experience with “O”, inspite of my initial good impression, has been very negative. I would caution any trader to avoid this broker like the plague!”
Example — “E”Forex
I would like to warn everyone using “E”-forex. This is what happened last night. I bought oil futures and tried to close the deal when it showed me a profit of around $500 but couldn’t do it. It asked me to contact the dealers room and within seconds it converted into a loss of $70. This time I tried to close the deal and it did. When I spoke to the dealers room they said they can’t do anything except forwarding my complaint to my account manager. I am expecting some silly excuse tomorrow but if they dont do anything I will take some action.”
If Broker is Market Makers (MM) – They Are Your Enemy
Just read their agreement which you have to sign when you open a trading account with them. You will find that they are a counter party – it exactly the same as Fixed Odds Bookmakers in betting industry (you will find the details of this particular point in Beat The Bookies By Knowing How Your Enemy Makes Money – Secret Of Odds). With your acceptance of their agreement, you actually agree that they will trade against you. When you trade with them you are playing with numbers only and you do not trade on the market at all – the below explains how they operate.
MM: Market Maker – With Dealing Desk
This is a broker that will take multiple prices from different liquidity providers and decide which combination MOST SUITS THEM. NEXT they will add a few pips to the spread and pass it along to YOU the retail FX trader. In turn they have just MADE a Market.
It has following characteristics:
- When you place a trade LARGE or small – it is routed to the Dealing Desk if not immediately counter-positioned by a black box against you and figured out later.
What is later? Later is when the Dealing desk that has taken the opposing side to your trade gets around to seeing if you are a threat to their bottom line. If you are and have somehow edged through, 2 things may happen;
- they actually do offset the risk by putting your trade (through their name – onto the Interbank market to reduce risk and protect their net exposure).
- they DO – CAN and will have your IP address/ (given, acct #) and can slow down your executions. If not completely block or freeze or RE-quote your account until you are in a losing trade. Stops are Not hunted in the sense many may think either – by unfairly widening spreads just to take you out. A retail broker is not going to get rich by taking out a couple mini lots from you. How it works is this. Brokers know where your stops are. You have in fact told them, so there is no secret. When a large number of stops accumulate in an obvious area, say 5 / 10 pips below recent swing low. A market maker can go onto the real FX market and place a large enough order to move the price back down in a less volatile time. Essentially wiping out a decent amount of stops before exiting, next the price continues on it’s journey backing and filling all the while.
- Scalping is useless, the spreads are too high, and the execution is lousy at best.
- It’s said that there are less than 1% of retail traders actually making real decent money (enough to live off comfortably) trading with a market maker.
Bottom-line, if you win, they lose and that is why they will not allow you to make any serious profit. The bookmakers in betting industry are more honest in this sense because they openly restrict sharp punters account to protect their own profits. In the worst case scenario, such brokers can split clients into groups. And they put less successful ones on auto-execution and trade against them because on average they will lose. On the other hand, the clients that show signs of successful trading will be put on “slow-down” mode and can be provided with frequent re-quotes, slippage and/or slower execution especially during fast moving markets while a broker tries to offset own risks.
Example — “G”
I witnessed my client’s trade being closed by “G” intentionally. He called the dealing desk so that they can help me hedge the trade so that he can add funds on his account to sustain the trades (which they did ) but after it was hedged the same guys closed immediately. We called the dealing desk but unfortunately these guys were rude claiming that we had issued a market order immediately. But how would the same client issue an order to close the positions when his intension was to hedge? I spoke to “Mark” – head of the dealing desk. He was so protective of his team, in a rude way he slammed the phone in my ears.. These guys never called my client up to now -they claimed that my issue would be investigated with 2 days… The worst with this broker he does not give clear explanations about his system. how it works. When you chart with his customer service its like they just from college.. they give answers like “try that”. Friends i thought if a client makes money the broker should be happy!!! with “G” its the opposite. To make things worse they have a complex system. If to compare it with other systems-its complex, really complex.. no time is taken to take you through the system. I think there must be guys behind who enter opposite trades whenever you are trading!!! To me “G” ain’t PROFESSIONAL- i would not recommend “G” to any of my clients!!!! Do not use “G” as your BROKER!!!”
Many MM are Regulated
Many brokers who screwed successful traders are regulated by NFA or FSA or any other regulation bodies in each jurisdiction. Don’t get me wrong, I’m not saying regulation is useless, in fact it’s quite important. Market Maker itself is nothing illegal and actually plays a big role to expand & activate the whole market by providing liquidity at the same time thus there are basically no rules prohibiting MM from being regulated. However, the point here is that it will still be your counter party and it will still trade against you. Therefore they may screw you by finding loopholes of regulation in various manners.
Face The Hard Facts At The Market
Why is there limited number of Non MM brokers in the market? The answer is simple: Becoming Market Maker is easier and over 95% of all retail traders resign to losing money. So if you decide to open a brokerage company, why would you choose Non MM that is the hard way of looking for liquidity providers, one where you even have to deposit $10 million on their account just so they are willing to give you their feed? On the other hand, when you are one of those bucket shop brokers you just need to make a nice web page and buy a license from Meta Quotes… and you are in business. Whichever math you do ? the pay-outs to those 5% of winning retail traders can easily be covered with 20 or 30% of the losers… and the rest of the deposits are pure profit for these bucket shop brokers.
We hope you now become aware that easy choice of broker may put you in risky place to protect your money.
Broker (MM) Three Hidden Agenda
With the all above explanations, you now realize 3 Hidden Agendas of Market Maker Broker, in summary;
1) MM has conflict of interest with you as a customer
2) MM never openly speaks this fact to you unlike bookmakers in betting industry
3) MM controls profit & loss of your account by manipulating trading & operations in various manner behind your back unlike the bookmakers that explicitly restrict smart punter’s account.
So, MM does not seem to be honest & transparent and you will have very few chances to make big & constant profits without knowing the exact reasons why.
Given the obvious facts, it’s wise to avoid MM (Market Makers) when you choose FX broker. Usually FX Broker doesn’t say “I’m a market maker”, you need to know how to distinguish to select the best broker for you, which is a starting point to develop passive income stream in FX trading.
That’s it for now.
So, please continue to read FX Broker Three Hidden Agenda & Four Essentials To Select The Best – Part (2) , which will explain What Broker is in Your Side, thus Which Broker You Should Choose.
Lastly, allow me to talk about the conspiracy theory again. According to hangthebankers.com, up until 2012 the mainstream media have in effect had a blackout on all Bilderberg Group reporting. It says Between 1950 and 1999, there were only 15 articles and news reports that contained the term “Bilderberg Group”. Between the year 2000 and 2004, 16 articles and news reports were written and between 2005 and 2011 that figure jumped to 213 (Source: Google News). Whatever the reason of sudden increase in 2012, it’s become more transparent, which we should welcome, — or do we have to be careful for brainwash by mainstream media that is actually under control of the powerful secret society in turn?
Anyhow, the undoubtful fact is that we have been more informed and it’s our own responsibility to select the right information to make the right decision.
You have the right information of FX Broker in this document, you will see the another right inforation in the Part (2) document, which I hope will help you make the right decision.
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