Brokers dont like News Trader?

Discussion in 'Retail Brokers' started by vortextrader, Sep 24, 2019.

  1. I really like trading by news . Is it true that brokers dislike news traders?I have heard that some brokers may not pay the profit from news trading , providing the trader constantly win or they just simply increase spread for a particular news trader during news session.

    Is that true? What are recommended brokers that pay and dont raise spread for news traders?

  2. Overnight


    Ask yourself...How would a broker know why you opened or closed a trade, and what you based your decision on?

    I think whatever rumor you heard is false. Your broker wants you to trade very very often, without taking on too much risk, because that offers them the best R:R. Stay solvent without putting your broker on the hook for too much margin, and yer right as rain. You could trade off of phases of the moon and they would not care...So long as you do not expose them to too much risk on levered positions.
    Theo1 likes this.
  3. MattZ

    MattZ Sponsor

    Yes, some Spot FX brokers do not like news traders and consider them "toxic" because they use some sort of arbitrage in pricing between the feeds. However, exchange-traded products like Futures, no broker would prevent you from trading the news.
    qlai and Overnight like this.
  4. Overnight


    How would they know if a FX trader is a "news trader" though?
  5. MattZ

    MattZ Sponsor

    They trade through very specific announcements only.
  6. qlai


    Because they are bucket shops? Same for CFDs.
    jharmon likes this.
  7. traderjo


    MattZ likes this.
  8. Theo1


    True, how a broker would come to know on what basis you are trading, but yes during news time spreads may go wild with some brokers, which could turn your profits into losses.
  9. its not rumor, a friend of my friend doesnt get paid by a broker. He makes about 40k US a month
  10. DevBru


    If he truly makes $40K a month, why is he still trading with a crappy broker?
    #10     Sep 25, 2019
    Theo1 and rb7 like this.