Why would you trade with a 5 pip stop??? Makes no sense use less lots, bigger stop unless you have DIRECT access to the interbank market and you can get filled on your bid and offer makes no sense to use such tight stops.
Just like in any business, there will always be companies that try to take advantage of their clients and lie and cheat their way to profits. But that doesn't mean that every company manipulates their spreads. If you have had bad experiences with one firm, just close your account there and try a different one. The big ones most likely won't be interested in cheating you. And also, from my conversations with account reps at several firms, they do usually hedge their positions, and don't hold the opposite position of the client.
Please do you have any reason to beleive them, when they tell you that they hedge our positions, please do you know any place that they can hedge the mini deals?
Although it's true that you can't hedge a single mini position, you can hedge based on the volume of trades. If you consider the amount of trades coming in constantly at any of these companies, you'll realize that to get you a quote within a reasonably short time period will not allow them to see every person's position. Most likely, they don't even have time to look at the account number of the person asking for the quote.
indeed i agree wit you, that they will not have time to look at the account no, however if they mark you as a wining trader they will look for hedging your trades, BTW who cares what they do, we our selfs should make sure make good trades and should forget if they lose or win.
It's really not too hard for these companies to make money off of the spreads. It's kind of like a casino in that they don't have to cheat to win. They start out winning. The rest averages out to be a wash for them, but they keep their spread gains on each trade. The odds are already stacked in their favor, no need to stack them any more. Also, they win because they stay in permanently. They never get closed out due to losses. Especially with mini accounts, this is the case for traders. They come in, have a quick loss, and are out. The company made money. No cheating the customers necessary. The company will be there indefinitely, to gain on the spreads over time, and make ultimate profits when they liquidate accounts due to insufficient margin. And yes, your average account will be a loser. Some will make lots of money, just like in casinos people win jackpots all the time. But this is made up by the fact that the majority lose.