Brokers dont like News Trader?

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?

Thx!!!!!

 

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.

 

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.

 

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

 

They trade through very specific announcements only.

 

Because they are bucket shops? Same for CFDs.

 

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.

 

its not rumor, a friend of my friend doesnt get paid by a broker. He makes about 40k US a month

 

If he truly makes $40K a month, why is he still trading with a crappy broker?