Forex market makers
Your Forex broker has a very important role in your success. There are two kinds of brokers:. I mean a market maker broker does not transfer your orders to anywhere out of the brokerage computers and servers.
For example when you buy EUR against USD, you are doing it inside the brokerage, and the forex world knows nothing about your position. In fact, you are trading with the broker, not in the forex world. If EUR goes up against USD, the broker has to pay your profit. In other words, trading through a market maker broker is like demo trading. Your orders will not go anywhere, and there is no real order with the real currency market.
You just see some numbers that go up and down on your computer screen , and it is the broker at the other side which is waiting for you to lose. Therefore, trading through a market maker broker is a demo trading that risks your real money.
Market Maker Brokers Hate Me
In most cases you will have no problems as long as you are not profitable and you lose money. You will have problems, if you make profit. Your profit is their loss. With some market maker brokers , even when you are not profitable yet and you lose money, they try to make you lose more.
They do it through different methods. They know how to do it. I have seen some articles about it on LuckScout:. Sometimes they can not stop you from making profit and the profits will be added to your account, but you will have problems when you want to withdraw your money.
The last thing they do with a profitable trader is that they ask him to withdraw his whole money and close his account. You are a troublesome client for them. They are the brokers that route your orders into the forex international market. They are connected to another market maker broker.
It means they route your orders to a market maker broker. The worst thing happens when both of these brokers belong to the same company. However, there is a better solution which is trading through a bank account.
To do that, you have to have a proper trading and living strategy: He is one of the LuckScout Millionaires Club instructors. I like trading fundamental news and as soon as I made some profits with my broker, they started to increase slippage and the level of requotes in my trades.
The worst part of it is that my stop loss was increased by additional 25pips last week when I traded canadian core price index news. Please sir, kindly recommend a true ECN broker for me.
All your articles has been a real blessing to me. Unfortunately I can not recommend any broker here on LuckScout.
How do Forex market makers work?
All brokers do that when there are news affecting your pair. I would suggest you to not trade during news time and go with a not so bad ECN broker.
First you have to ask the broker. They were used to hide it in the past, but now they can not hide that they are market maker.
If they said yes, then ask them who their liquidity providers are. The only broker that we can work from Iran is Forexer company. You are not the only trader who loses. Not all the losses are because of the broker. I found a broker who claimed they are not market maker but instead they offer two different trading accounts: MT4 account using instant execution with no dealing desk intervention. Thanks so much Chris and Kamel of all your inputs and advices. Thanks also to Thys for his courage to ask; because of him I know ECN and STP stands for.
Brokers work like bookmakers, its as simple as that. If you bet on a rank outsider, you are going to lose your money. If you bet on the favorite, you have a chance of making money. If you consistently bet on the rank outsider, the broker will take the other side of your trade. You lose he wins. If you bet on the favorite all the time, your broker sends your orders to the market.
DMA is for equities and futures. With DMA your order goes directly to the exchange servers. Amazing blog i came through in my learning.
Forex Market Makers
I request u to clarify my doubts please 1 Is there any way to avoid stop loss hunting?? I think At that time a single broker cannot fund much to hunt the stops? But problem, cuz you saying that market maker trade against me, and that with market maker i cannot make profit. So you are telling me that ok, to start small account with broker which is market marker. Assuming your broker is a market maker, is it a good practice to use other platform to check-mate them especially when they are haunting your stop loss i.
Dearest sir, I know you are a dearest teacher. I like you as anybody likes his life. You are a genius. I always check price value at https: Up to now my broker price are right. I know this is my fault. I need some more patient. But I believe it will happen soon. After that I will have chance to test that company. I have found some only to find out they do not provide services to USA citizens…. Get Our New E-Books For Free.
Market Maker Brokers Hate Me By: Forex Brokers Last Updated: There are two kinds of brokers: Enter Your Email Address and Check Your Inbox: LEARN A PROVEN BUSINESS PLAN. July 22, at July 22, at 3: July 22, at 4: July 23, at July 23, at 4: September 23, at 7: September 23, at 9: October 3, at 3: October 3, at 9: Alejandro O, Bastida says: October 17, at October 25, at November 2, at 8: November 2, at 1: January 17, at 7: January 18, at January 19, at January 20, at 3: January 21, at 1: January 23, at 9: January 23, at February 3, at 8: February 4, at 3: April 27, at The Easiest Way to Get Rich Fast.
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