The Forex Brokers are the house like the bookies and casinos and we need to beat them?
If not why there are so many scams and frauds?
How this market really works?
Some ways to defraud of your money
- Immoral Stop Running/Hunting
You are told by Forex brokers that there is little or no stop running. This is one of their biggest and boldest fabrications. The truth is there is far more stop running in Forex than in futures, and possibly as much stop running as in the stock market.
- Wipe you out by "false" spike
Sometimes, theres very quick spike in candlestick on a brokers chart, but there is nothing happening on the others chart. A stop-loss is triggered simply due to that suspicious spike.
- Ban you if you can win their money
Probably you have heard that if you are winning regularly in Forex, you may be barred from trading. Is this true? Yes it is.
Brokers say they are charging you a 3 pip spread to trade the popular currency pairs. But in reality a broker may be making as much or more than 10 pips on your trades. He does this by skewing prices. Since you are not trading at an exchange, the broker can feed you any price he wants to feed you.
- Skewing price quotation
Forex brokers commonly lean the prices. A Forex broker can only give you the price of a currency as quoted to him by the bank through which he trades. Banks have differing prices for a currency. You never know what the real price is because there is no central exchange through which all prices flow.
But anyway, the 'noob' part is right but where's your question?
Hey forestgril, that you?