How to cheat forex broker

Now, let’s talk about the ways that brokers can cheat to make more money out of your trades.

Actual forex bonuses

6 Ways Forex Brokers Cheat You, how to cheat forex broker.

Before reading the rest of this post, I recommend you to read a small article already published on luckscout, to learn about the two different kinds of brokers, market maker and ECN/STP. When you see a broker offers such a high leverage, don’t think that they do it for your favour. They think about making more money within a shorter time.

6 ways forex brokers cheat you

Making money through forex trading needs 3 requirements to be met at the same time:

Techniques

Proper mental situation

Proper brokerage service

We have to talk about all of these 3 requirements on a regular basis. Focusing only on the techniques, or giving you the forex signals whenever there is a trade setup doesn’t make you a trader. You have to learn the techniques and master your trading system, and at the same time you have to build a proper and stable mental and psychological status for yourself. Additionally, you also have to know about the brokers, the way they work and make money, and the way they can cheat their clients to make more money.

As a retail trader, you need to have an account with a broker, otherwise you will not be able to trade. Many professional traders, hedge funds, money managers, proprietary trading firms, and institutional traders who have large trading capitals, trade through the banks. Some of them have their own custom made platforms connected to the liquidity providers. However, novice retail traders who want to start with a small account, have to sign up for an account with a broker, because they cannot afford to trade through the banks, or have their own platform.

If you are a retail trader who wants to open a live account in future, or you have already opened a live account, you should know how the brokers make money and how they can cheat you to make more money.

Before I go to details, I have to clarify something:

There are so many traders who open a live account before they learn to trade properly, and so they lose. Instead of finding the problem and trying to fix it, many of them are used to accuse the broker. It is true that many brokers cheat their clients, but most retail traders lose because of their own mistakes, not because the brokers make them lose. A cheating broker can cause the losing traders to lose more and wipe out their accounts faster, but a professional trader can easily find out that the broker is cheating, so that he will withdraw his money and close his accounts as soon as possible. So, if you lose money in a trade after reading this article, don’t immediately think that the broker has made you lose.

I will have a separate article about the ways that broker can make money legally. In this article, I am talking about the ways that brokers cheat their clients to make money illegally.

Regulation

Nowadays, traders talk about regulation all the time. A brokerage company is regulated when it is registered with a governmental organization that monitors the brokerage companies activities. Usually there are also something like insurance that covers the traders capital if the registered broker gets bankrupt.

When traders find out that a brokerage company is regulated with a well-known and powerful organizations/authorities, they think that they are safe and they can not be cheated anymore, but this is not true. I have seen some highly regulated brokers that cheat their clients the most. How?

There are always some special cheating ways, that can not be tracked by the regulatory authorities.

Brokers can easily bribe the regulatory authorities and ask them to be kinder to them and close their eyes on some events.

Many of the people who work in the regulatory authorities are the brokerage companies owners, and so they know how to bypass the rules

The “regulation market” started to become hot since a few years ago, and poor traders thought that the governors have finally decided to support them against the cheating brokers, but they were wrong. There are proofs that those regulations are done by the governors who directly or indirectly own brokerage companies and make millions through them. They made the regulation rules to prevent the traders to open accounts with the offshore brokerages, so that the money stays in their own countries, and the traders become obliged to open accounts with those brokerages owned by the governors. I am sure you can guess the rest of the story…

Someone who has GOLD makes the rules!

The conclusion is that “regulation” doesn’t necessarily mean that the broker can not cheat. Also not being regulated doesn’t mean that the broker cheats definitely. For some cheating brokers, “regulation” is just a tool to attract more traders to open accounts. They get regulated and registered because they have to, not because they are honest. I am not saying that all registered/regulated brokers cheat their clients. What I am saying is that don’t trust a broker just because it is regulated and registered.

There are dirty hands behind these kinds of apparently good actions (regulation). When they found out that they could make a lot of money through the traders losses, they took actions to (1) prevent the traders’ funds to leave the country, and (2) make it too difficult for the small brokerages to become registered and regulated, because (1) they wanted to keep the traders’ money in their own country, and (2) only their own brokerages become regulated, and traders can not open accounts with the other brokerages. Indeed, they created a funnel to drain the funds to their own pockets. However, people just see the surface and are not aware of what is going on behind the scene.

Let me ask you a question. More than 95% of the traders lose money. Many of them wipe out their accounts at least a few times, before they give up on forex trading. Many of them lose a lot of money. What these so called regulations have done for these people?

Nothing. Still more than 95% of the trader lose. What the governors have done is not about supporting the traders. It is about driving the funds toward the direction they want. They could easily make a rule that doesn’t allow those who have not passed some training courses and stages to open live accounts. You can not drive a car when you don’t have a drivers license. They could do the same with having a live account too. Why don’t they do it?

You know the answer. They want you to open a live account before you learn to trade properly, and lose your money. Before the regulations, they were worried about you to lose your money to the overseas brokerages, but now it is OK if you lose, because your money goes to their own pockets now.

Now, let’s talk about the ways that brokers can cheat to make more money out of your trades. Before reading the rest of this post, I recommend you to read a small article already published on luckscout, to learn about the two different kinds of brokers, market maker and ECN/STP.

When you learn about the market maker and ECN/STP brokers, you may think that it is only the market maker brokers that cheat the traders. This is not true. ECN/STP brokers can cheat to make more money.

1. Stop loss hunting:

Stop loss hunting is a very effective way that market maker brokers use to make the traders lose money. To learn about this method, please read this article: stop loss hunting by forex brokers – what to do?

2. Markups

ECN/STP brokers should only transfer the orders to the liquidity providers (banks). They can only charge a fixed fee (commission) for each order, and this fee is the only way for the ECN/STP brokers to make money. However, many of them who are greedy, want to make more money through some other ways. “markup” is a way used by these brokers to make more money through each position that traders take.

Markup is an extra pip the broker adds to the liquidity provider’s base spread. For example, the liquidity provider spread for EUR/USD is 0.5 pips, but the broker adds 1 pip to it, and so the total spread becomes 1.5 pips. In this case, the broker makes 1 pip, in addition to the commission it is legally allowed to charge.

How can you find out that your broker adds markups?

You can ask the broker first. Sometimes they tell you that they are doing it. Many of them believe/claim that it is their right to add markups while they charge commissions also. Many of them deny it, and claim that the spread they offer is the normal forex market spread. You can easily compare their spread with the market’s normal spread. If it is 1-3 pips above the regular spread, then they are adding markups to the spread. Nowadays, the liquidity providers offer a very low spread, as low as 3 pips for GBP/JPY that was used to have a relatively high spread in the past. If an ECN/STP broker doesn’t add any markups, then its spread must be very low.

When you found out that your broker charges markups too, it will be your choice to withdraw your money and close your account, and find another broker. However, you should note that sometimes the broker adds markups, but it is a real ECN/STP broker and you don’t have any problems in opening and closing your positions. If just a few markup pips doesn’t make a big difference, you’d better to hold your account.

It doesn’t make sense for a market maker broker to add markup. The spread they offer is completely in their own control, and they don’t get the spread from a liquidity provider. Therefore, they can increase the spread directly and they don’t have to add markups.

3. Slippage

A high spread because of adding markups can be easily seen on the platform, by checking the difference of the bid and ask prices. However, slippage is hidden to the traders. You don’t find out that the broker slips the price as long as you have not opened and closed any positions.

Slippage is a trick made by the market maker brokers. As your profit is their loss, then they have to do their best not to let you win. One of the ways is that they slip the price when you want to take or close a position. When you want to buy and click on the buy button, they suddenly take the price higher, so that you will enter with a higher price than what you see on the chart. For example you want to buy EUR/USD while the buy price is 1.31216 on the platform. You click on the buy button and you enter, but when you check your entry price you will see that it is much higher than what you saw on the platform. For examples it is 1.31320.

They don’t make you enter with a lower price when you want to go short (sell), because it doesn’t make sense to enter with a lower price when the actual sell price is higher on the platform. However, when you want to close a short position (you buy) they slip the price and you get out with a higher price.

Slippage causes you not to make the profit you could make with your winning positions, and lose more with your losing positions, because it worsen your entry/exit prices.

Market maker brokers don’t do this manually. It is all done automatically and through some special settings of the platform.

If you ask them why this happened, they will answer that it is because of the market situation, volatility and… .

With the real ECN/STP brokers sometimes you see that your entry is not what you saw on the chart. You may think that they also slip the price when you enter, but this doesn’t make sense to do if the broker is a real ECN/STP broker. They don’t make money from your losses, so they don’t have to make you lose. In contrast, they want you to win, grow your account and keep on trading with them, so that they will also make more money in long term.

Slippage is normal with the real ECN/STP brokers, specially when the market is volatile and during the news release time, because ECN/STP brokers have to route your orders to the liquidity providers. Although this is done automatically and electronically, but it takes some time and it is possible that the price changes during this time, specially when the market is moving strongly. So you will enter with a different price than what you saw on your platform. With the market maker brokers, this difference is always against you, but with the ECN/STP brokers it is sometimes against you, but sometimes in your favour.

4. Re-quoting

Re-quoting is another trick made by market maker brokers. When the price is going up strongly, and you choose the right direction to enter (you click on the buy button), the broker delays for few seconds, and then instead of taking the position for you, gives a new price which is higher than the price you want to enter (because the price is going up strongly).

They do it when you choose the right direction. When the price is going up strongly and you buy, then you will make profit, and this is what a market maker broker doesn’t want. So it doesn’t let you enter with the buy price that was being offered when you clicked on the buy button, waits for few seconds for the price to go higher, and then offers you a new price, which is called re-quoting. Then you will have to click on the buy button again to enter. It is possible that they re-quote again, and repeat this process for a few times, to either stop you from entering the market, or make you enter with a much higher price. They just want to sabotage your trading.

Similarly, when the price is going down strongly, and you choose to go short, they don’t let you enter and wait for the price to go lower, and then they re-quote. They cause you to enter with a lower price to prevent you from making a good profit from your short position.

If you find out and complain, they will say they have no idea, and re-quoting is just the result of the markets volatility, and they have no control on it, and… . Whereas this is absolutely a big lie. They do the re-quoting through some special software and settings they apply to the platforms. They do it 100% intentionally.

Real ECN/STP brokers don’t re-quote, because it doesn’t make sense for them to do it. It will have no advantage for them. However, if a broker claims that it is a real ECN/STP broker, and it re-quotes at the same time, then it is not a real ECN/STP. It is a market maker broker.

5. Swap

Swap is the interest you have to pay when you hold your position overnight.

Swap has to be calculated through a special formula, and as each currency interest rate is clearly stated by the related central bank, the swap has to be a constant amount with all of the brokers, banks and liquidity providers. However, the swap you actually pay is different from broker to broker. It is OK if it is not too much, but if you see your broker charges a lot as the swap, then you have to ask them about the reason, and you have to close your account if they don’t fix it. Swap can cause you to lose a lot specially if you hold your positions for a long time.

6. Leverage

Leverage is a good facility that helps us trade large amounts of money with a smaller account, and make bigger profits compared to the time that there is no leverage. However, it is a two-edge sword that can cut our own throat, if not used properly. Most of the novice and inexperienced traders misuse the leverage and take huge positions that their account balance is not high enough to handle. So that when the position goes against them, they get margin call and stopped out very easily and the whole account will be wiped out.

Real ECN/STP brokers that are connected to real liquidity providers cannot offer a leverage higher than 100:1, because the liquidity providers do not support a leverage higher than this. If a real ECN/STP broker offers a higher leverage, and the client’s position goes to loss, then it is the broker who has to pay the extra loss. So a real ECN/STP broker never supports a leverage higher than 100:1.

However, market maker brokers can offer any leverage they want. I see that nowadays some of them offer 2000:1 which is crazy. Why do they do it?

They know that over 95% of the traders don’t know how to trade and they wipe out their accounts sooner or later. A higher leverage makes them take bigger positions, lose more and wipe out their accounts faster and easier.

When you see a broker offers such a high leverage, don’t think that they do it for your favour. They think about making more money within a shorter time.

This is it about the ways that brokers can cheat you. Please don’t ask me to recommend you a broker to open a live account with. I will never do it. I have good reasons for that.

6 ways forex brokers cheat you

How long can you leave A forex trade open?

The same is true of financial advisers and financial consultants, if those are the titles that your broker uses, as well as financial planners and insurance agents who sell products on commission. Experienced traders looking for a community or advanced assist. Georgep (founder/head trader) does a great job explaining market behaviour and decision-making in real-time. Trading psychology was immediate impact – looking forward to the full course.

Can I do forex trading without a broker?

So, yes, it is possible for someone to start forex trading without a broker, and it is because forex is simply a currency exchange process. Some benefits can be also found by trading without a broker, such as not paying any commission from your profits: all what you obtain from your transactions stays with you.

Few things are as damaging to a trading account (and a trader’s confidence) as pushing the wrong button when opening or exiting a position. It is not uncommon, for example, for a new trader to accidentally add to a losing forex trading position instead of closing the trade. Multiple errors in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, making trading mistakes is incredibly stressful.

Is forex a gamble?

Forex trading can become gambling when you don’t know what you’re doing and it can exist in many different ways. In most instances, forex traders end up gambling when they don’t follow a trading strategy.

“markup” is a way used by these brokers to make more money through each position that traders take. A brokerage company is regulated when it is registered with a governmental organization that monitors the brokerage companies activities. Usually there are also something like insurance that covers the traders capital if the registered broker gets bankrupt. If you are a retail trader who wants to open a live account in future, or you have already opened a live account, you should know how the brokers make money and how they can cheat you to make more money.

Avoid investment scams

Ninety percent of traders lose money, largely due to lack of planning, training, discipline, not having a trading edge and having poor money management rules. 1) scammers purchase shares in an illiquid company prior to soliciting traders. The scammer, acting as a broker, then convinces other traders to buy shares and drive the price higher.

You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. Roboforex offers a wide variety of different trading platforms suitable for both beginner and advanced traders to trade on multiple asset classes.

We are the only service that follows the reviews and ensures that they are left by real people, and not by competitors or anyone else interested in improving or deteriorating reputation of the broker. The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.

Platform & tools

Clients can choose a trading platform which suits their needs to trade. All of these platforms aim to fulfill clients requirements. It is essential to treat forex trading as a business and to remember that individual wins and losses don’t https://dowmarkets.Com/ matter in the short run. It is how the trading business performs over time that is important. As such, traders should try to avoid becoming overly emotional about either wins or losses, and treat each as just another day at the office.

The chosen colors, fonts, and types of price bars (line, candle bar, range bar, etc.) should create an easy-to-read-and-interpret chart, allowing the trader to respond more effectively to changing dowmarkets cheating market conditions. Traders should also research each broker’s account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies.

Talk to them, learn from them, but suspect and investigate everything . When it comes to expensive financial products, “no” is a mind-clearing, money-saving https://forex-trend.Net/what-is-dowmarkets-and-how-to-use-it/ word. Raise quotas to the point where brokers are tempted to churn accounts — that is increase buying and selling simply to generate commissions.

Leverage is a good facility that helps us trade large amounts of money with a smaller account, and make bigger profits compared to the time that there is no leverage. However, it is a two-edge sword dowmarkets that can cut our own throat, if not used properly. Most of the novice and inexperienced traders misuse the leverage and take huge positions that their account balance is not high enough to handle.

As can often happen with “hot” stocks, the company struggled to live up to the hype. They led the share price to an incredible $549 before it plummeted to less than $10 a share. Generally speaking, unregistered offerings are not subject to many laws and regulations that exist to protect traders.

Once a trader has done their homework, spent time with a practice account, and has a trading plan in place, it may be time to go live—that is, start trading with real money at stake. No amount of practice trading can exactly simulate real trading. While traders should have plans to limit losses, it is equally essential to protect profits. Any analysis technique that is not regularly used to enhance trading performance should be removed from the chart. In addition to the tools that are applied to the chart, pay attention to the overall look of the workspace.

My account with different brokers have been traded by others NOT ME and wiped out my deposits. When the price is going up strongly and you buy, then you will make profit, and this is what a market maker broker doesn’t want. Then you will have to click on the buy button again to enter. It is possible that they re-quote again, and repeat this process for a few times, to either stop you from entering the market, or make you enter with a much higher price. Slippage is normal with the real ECN/STP brokers, specially when the market is volatile and during the news release time, because ECN/STP brokers have to route your orders to the liquidity providers.

XM facts & figures XM.Com offer a range of account types and a low minimum deposit to appeal to all levels of trader.

Although these mistakes can afflict all types of traders and investors, issues inherent in the forex market can significantly increase trading risks.

Traders in netherlands welcome 73.57% of retail accounts lose money.

With 1000+ markets and low spreads they offer a great service.

Scoring for this category matches that of other metatrader-only brokers. Lastly, it’s worth noting that hotforex also offers HF app, which is its proprietary mobile platform with various research and trading tools and calculators, although it does not permit direct trading.

Once the supply hits the market, price reverses and starts to fall rapidly while all of the small retail traders that chased the breakout are now getting stopped out to the downside. This is what we call forex manipulation and it happens on a weekly basis in the FX market.

The platforms along with the variety of assets and accounts bring various options to trade either through robotic systems or investment, as well as powering trading by the power of developed tools. Dowmarkets rezension roboforex demonstrates a well-regulated broker, which offers a wide selection of technological solutions allowing traders of any size or strategy, even when just starting to engage into trading.

Luckily for all of us, most forex brokers offer a negative balance protection called margin call, and will automatically close a trade before the loss becomes more than the initial deposited balance. To avoid any trouble related to margin forex trading, always read your forex broker terms and conditions before agreeing to them. Roboforex understands that traders should focus all their efforts on trading and not worry about the appropriate level of safety of their capital.

One of the ways is that they slip the price when you want to take or close a position. When you want to buy and click on the buy button, they suddenly take the price higher, so that you will enter with a higher price than what you see on the chart. For example you want to buy EUR/USD while trading signals the buy price is 1.31216 on the platform. You click on the buy button and you enter, but when you check your entry price you will see that it is much higher than what you saw on the platform. Now, let’s talk about the ways that brokers can cheat to make more money out of your trades.

Being registered does not mean that the broker is regulated. Is only the first process, where the broker pays a fee in order to be registered meanwhile is making ready his documents in order to be regulated. This does not mean that all the registered brokers, want the regulation.

Ask the traders: do forex brokers cheat traders?

How do forex brokers cheat traders and ways to avoid forex broker scam

Do forex brokers cheat traders? Asked by daily trading tips investmenttotal.Com readers from canada, because he read our article on how to start trading forex in canada and what are the forex broker that accepts canadian traders.

Dear investmenttotal.Com admin, I want to ask what are the reliable forex brokers in canada and do you think forex brokers cheat traders especially those retail traders who has only small capital?

I want to ask many traders all over the world, do you think forex brokers cheat traders? Well, in my opinion whether you have a small capital or large forex trading account equity, many forex brokers cheat traders.

Here’s how! By manipilating the forex price, if you have a sell position, and some “cheat” spikes to the price, you will lose your trades. But many professional traders has counter trades in case forex brokers cheat these traders.

Example forex brokers cheat traders

You have a sell position because the market is down or bearish, you will keep adding positions when the price is going up, that case you will minimize the forex broker cheating activity. But you need to consider risk reward ratio after all.

You need to find a reliable, trustworthy forex broker for you start trading forex. The success in forex trading will not only rely on your forex trading strategy but of course to the broker you are using.

Image credit: arten via pexels CC 2.0

Ask the traders: do forex brokers cheat traders?

Now, let us ask many professional, experienced traders all over the world. Leave a comment below if you experience this kind of cheating activity of forex brokers.

Be careful not to post affiliate links of forex brokers because we want to have a safe a community of forex traders here. Thanks! Write your opinion below!

5 forex trading hacks

Five easy ways to make profits in forex

If you want to make profit trading forex, you need to be smart enough to leverage on potential opportunities. To do this, you need successful forex trading hacks. Part of it is knowing the right tools and strategies that can make trading easier and more successful. This guide discusses forex trading profit hacks that help you to make money consistently in the market. If you follow the tips and put them into practice, they’ll definitely improve your trading results!

5 simple ways to make profits in forex

Forex trading hack 1: get organized and be disciplined

To succeed as a forex trader, you must, first of all, get organized and learn to practice self-discipline. You clearly need to know what you are looking for in the markets to be able to build an organized and disciplined trading approach around it.

Thus, ensure you know your trading edge and try to master it. Generate a trading plan. You require a forex trading plan; try to create it around the trading strategy you have mastered. There are a few ways to get this done:

Pinpoint your trading personality

There are four different types of trading personalities. Discovering yours can help you to trade your strengths and minimize your weaknesses. If you are a novice in the market, you may find it difficult to know your trading personality but these tips will help you to figure it out. You will fall into any of the following four categories:

The now trader: the now trader prefers to trade the market quickly and get out. He wants to get in, get his pips and exit the market. Now traders commonly trade with smaller time-frames, spend less time everyday trading and capture smaller pip numbers but may trade more frequently.

The in-the-game trader: these traders prefer to review the market every day, but take action that lasts long and aim to capture larger pip over a longer period of time. These groups of traders go for medium range timeframes and are cautious of reversals and analytical flaws.

The adrenaline junkie trader: these traders only trade once, or a few times every month following major financial news like quarterly or earnings reports. This group of traders mostly engages in swing trading.

The low maintenance trader: these traders follow the set it and forget trading approach. They trade with longer time frames by using trading strategies that help them win big over a long period of time which may last for many months. They only concentrate on safer trade choices that hold high-profit potential.

Establish a personal set of trading rules

Success in the markets is determined by how much control you have over your own trading habits. Knowing when to get in is important for making money, but knowing when to get out is equally as important when it comes to not losing money.

Knowing when to exit the market is an important rule to have, but it should be one of many that you utilize when you trade. You should have many rules that cover everything from your winning and losing percentages, to how much you risk per trade and more.

Set your trade and go away

Emotion is one of the reasons your trade fails . To deal with your emotions, you need to set your trade and let it be till when it is completed. If you view the chart constantly, each time the market fluctuates you’ll drive yourself crazy. When the market reverses direction you’ll tend to want to pull out too soon or over-correct the position and end up losing more money. You need to get reliable trading software and have faith in it. To avoid overreacting emotionally, only look at the trade when you place it and when you exit it.

Know the right time to trade

Get to know the euro open strategy. The european session known as the london daybreak opens at 3 AM EST, and this session is massive for traders because roughly 75% of the entire forex transactions occur during this session.

This is also when the market’s highest highs and lowest lows will occur.

With the use of either your charting software or a market scanning tool, you ought to target the euro session as your best time to trade.

Forex hack 2: learn to manage your risks

To achieve this there are a few things you can do, lets take a peak at them down below.

You place a trade order and set your stop and discover that you are consistently being taking out just prior to your big win. The solution is to always set a stop loss.

Stop-losses prevent you from losing all the money in your account in a single trade. You set a minimum number for the market to hit as soon as the market hits that number your trader would automatically exit on your behalf.

Alter your stop-losses as the market situation changes

As the market ebbs and flows, stop-losses get bigger. This volatility generates higher highs and higher lows, which could give higher profits to smart traders.

Smart traders alter their stop-losses to reflect the market. How you can correctly use a fluid stop-loss number is to move the minimum number based on the market movement.

When to move your stop-loss

Search for a high or a low that has two candlesticks to the left side and two candlesticks to the right which are higher or lower from that position.

A high commonly have two lows to the left and right

A low commonly have two highs to the left and right

Use reversals to your advantage

Forex trading goes on 24 hours and is made up of 3 major trading sessions: the european, U.S. And asian sessions. The european session has the most movement, which is followed by the U.S. And lastly the asian markets. Frequently, the market will reverse directions when one session ends and the other starts. By trading these reversals, you are likely to capture the most pips.

Thus, if the european session is trending bullish, as soon as the american session starts to set in, it will start a reversal and the market will turn bearish.

By using this strategy you can identify the reversal points, leverage on the market movement and know when a market high or low could happen. With 3 trading sessions occurring every day, there is the potential for 2 reversal positions every day. This implies that utilizing a single strategy can determine how you view three different markets.

Forex trading hack 3: trade in baskets

Follow the tips below to get it done:

You can save time and multiply your profits by trading in baskets

This is a strategy that allows you to have it both ways and it involves selecting a currency and placing it into one of two sections:

The control section

The pegged section.

The control section is when the currency like the USD is on the left side of the slash of the currency pair – USD/CHF, USD/JPY etc.

The pegged section is when your chosen currency is on the right side of the slash like EUR/USD, GBP/USD etc.

The first step is to select a currency to concentrate on. As soon as you do it, you create your control and pegged baskets.

The next step is to conduct research on your chosen currency. Then, based on your research, you will get information on how your currency performs against the currency it is paired with. You can trade both bearish and bullish move at the same time when you split the currency pairs into baskets.

If for instance, you want to trade the USD and, based on your research, you’ve discovered that it is strong against the swiss franc, but weak against the japanese yen.

You would create a basket trade that allows you to buy the USD/CHF pair , and sell the USD/JPY pair .

This lets you trade bullish against the franc and bearish against the yen concurrently. Trading in baskets gives you the opportunity to make double gains.

Locate your basket data

The solution to succeeding by trading in baskets is to conduct research on the currency you have chosen. You should start this by using your charting software and studying candlesticks.

If a currency is growing in strength, you would check the charts to confirm the bullish uptrend. When the currency’s control of the currency pair rises, it has extra control.

Forex profit hack 4: know your risk limit

Never risk more than 2% to 5% of your trading account

A great forex management tip is to never risk more than you’re willing to lose. The amount of money you risk must be what you can comfortably living your life without it. We advise you to limit it to merely 2-5 per cent of your trading account.

Before placing any trade, have it at the back of your mind that every trade comes with some risk. You will not always win. You’ll definitely lose at some point but the key is your ability to properly manage this risk to give you the chance to have money to trade again.

If you are just beginning it is better to stick with trading risks of only 2 per cent of your trading account. You can increase it as you grow your experience but it must never exceed 5 per cent.

Identify and trade candlestick formations

One of the trendier candlestick formations is the head and shoulders pattern. This occurs when a bullish trending market makes a peak and begins to retract.

The problem with this candle formation is that the market will frequently overcorrect itself and you’ll take a huge loss before you know it. To avert this it is better to trade with the king’s crown pattern. With the king’s crown pattern, you are trading beyond the “shoulders” of the head and shoulders pattern. As soon as the market takes out a low of support, it tends to bounce back up before the market finally falls.

Here is how to trade this pattern:

Label your highest point on the chart as labeled ‘A” and label the previous high as the “left tip.” the left tip is significant because it informs us how high the market was trading earlier which signifies to us how low the market will trade eventually.

Moving back to the A mark, you can draw a line from the fresh highest high to the new lowest low, the B position. Follow that trend to the next highest position to get to position C, and finally to the next low which is your “D”.

In this instance, what you need to do is to buy when the market starts to rally after the D mark. You won’t lose your trade until the market goes beyond the D to reach the newest low.

You know when this will occur because you know the value of the previous high before the start of the king’s crown started (the left tip).

In instances like this, what you are trading is not the neckline but the breaking point beyond the lowest low. This extra movement in the market lets you see the true indication of the markets and could minimize your future chances of making losing trades.

How to distinguish a good forex broker from a cheat

By jackson li | submitted on july 16, 2010

If a forex trader decides to entrust his/her capital to the forex broker, it is crucial that a forex broker should be a reliable professional with a good reputation, since it's the trader's hard-earned money at stake.

It must be mentioned that sometimes some brokers can trade against their clients, but for making their own profit. Nevertheless, the brokers' activity is regulated by such organizations as CFTC and NFA, and now they are imposing stricter requirements on forex brokers' business, which has led to the unreliable and questionable brokers leaving the market.

Still, the taking into account the number of inexperienced traders entering forex market in the pursuit of quick money, the amount of brokers appearing to be cheats remains high enough.

So, what are the features by which a reliable good broker can be distinguished from a scam? There exist some pieces of advice helping to choose the right broker who will manage a trader's money properly and profitably.

Firstly, when a forex trader starts seeking for a broker, he/she inevitably turns to the internet as the largest and most available source of information. At the same time it is very important to be able to filter trough the loads of information about the forex brokers that turns out to be false. This happens due to the fact that some forex traders whose trading strategies appeared to be initially wrong and unprofitable tend to blame their brokers for that.

However, often the key reason of losses is not the brokers' fault, but the trader's inability to grasp the forex market dynamics and the lack of knowledge and skills. Forex market is a very rapidly changing phenomenon, and, what is more, it is very susceptible to many outside influences, so, we do not always get the price that we want, and this is due to the external factors and not to the broker's lack of professionalism.

A good broker is supposed be able to provide all the necessary explanations to the client and be always available for communication. What is more, a client must always be able to withdraw funds for the trading account. Failure to carry out at least one of the above mentioned conditions points to the fact that a forex trader should be wary of such forex broker and consider refusing his/her services.

Of course, before choosing as broker a certain research on his/her reputation and trading documents should be done, and if the results are satisfactory, then it is still recommended to open the mini account or just to put a small amount of capital on an ordinary account. If the trading goes well over time, more funds can be deposited.

On the whole, it should be kept in mind that not all brokers turn out to be cheats and in fact good forex brokers are primarily interested in establishing long-term relationships with a client and thus making a profit.

How forex brokers cheat traders? (regulated vs unregulated)

FOREX market is the largest financial market in the world, volume traded per day grew to about $5.3 trillion. There are numbers of new traders enter into this market and it is estimated that around 96% of forex traders lose money and quit forex trading. Forex market requires you to have many skills if you want to succeed through forex trading. New traders are generally unaware of how to choose the right broker for them. They do not have a good source through which they can learn how to choose the broker. Forex brokers cheat their clients due to the lack of knowledge in the newbie trader.

So, how do forex brokers cheat traders? Forex brokers cheat the trader in many ways like, stop loss hunting, markups, re-quoting, slippage, leverage, swap etc. They cheat traders due to the lack of knowledge and efficiency in forex trading. Even some reputed brokers use some tricks to cheat you and to gain more money.

How to spot A bad broker

Because of many scam brokers, a trader needs to be prepared when he enters the market. He should be clear about the basic knowledge of this market. If you are also one of the new traders, you should be aware of your broker. Here are some requirements a new trader should fulfill to do not get cheated:

1. Techniques

Techniques play a crucial role, your profit-making ability is based upon different techniques you use while trading. You cannot try out your new techniques on your live account, so you can also test them out in the micro forex account or even on demo trading account.

Generally, brokers don’t trade against those who have experience and have sufficient knowledge about the market. It is because, if you are a disciplined and expert trader, it helps them in increasing their trade volume. So as a trader, you should keep test out different methods of trading.

2. Proper mental situation

Emotional trading always harms the trader. It is necessary for any trader, whether a new or existing, to have proper control of their emotions and mind. Many traders take the decision when they are greedy or fearful. It can be dangerous for your trading to become fearful or greedy.

If a trader is not mentally weak, it is impossible to survive for them in this market. A trader should always avoid emotional trading, which may result in over-trading and ultimate loss. To test out emotional controlling, a trader can also start using a micro forex account. It helps in proper risk management and improves risk adoption ability.

3. Proper brokerage service

Brokerage service is an utmost important factor for any trader. If you are new to the market and do not have any knowledge on how to trade, you should not start trading directly, instead, you should first start using a demo account. Demo accounts help you in learning some basic concepts of the market and then, you can go for micro forex trading. While getting you demo or micro trading account, you should choose the right broker who can provide you the proper services.

Hence, it is important for a trader to choose the right broker and the proper brokerage service.

These are the three requirements when fulfilled, you cannot be cheated from any forex broker. There are many ways through which forex brokers cheat traders.

Ways through which FOREX brokers cheat traders

Forex traders are only cheated when they fail in choosing the right broker who can provide them proper brokerage service. But, when a trader fails in finding the right broker, there they get cheated. Here are some tricks forex brokers use to cheat their traders:

1. Markup

Electronic communication network & straight through processing brokers should only transfer the order to the liquidity providers i.E. Banks. Markup is an extra pip added by the broker to liquidity provider’s base spread. They are allowed to charge a fixed fee/commission for each order and cannot charge any extra commission. This commission is the only way for the ECN and STP brokers to make money.

While, out of them, some are greedy who wants to earn money in different ways. Markup is the technique used by these brokers to gain more money through each position they trade. How you can find whether you broker adds markups? You can ask your broker about this. Most of them would say it is due to a bug or any technical issue, while many brokers believe that, it is their right to add markups.

2. Re-quoting

Re-quoting is another trick used by market maker brokers to cheat their traders. They cheat you in such manner that, they do not allow you to take the right position while trading. When the price is going up strongly, and when you choose the right direction to enter and take the position, the broker delays for a few seconds, then instead of taking the command and position for you, it gives a new price which is higher than the price you want to enter.

Similarly, when the price is going down strongly, and when you choose to go short, it doesn’t allow you to enter and wait for the price to get lower. This is how forex brokers cheat their traders. They do it when you choose the right direction, they don’t let you enter to the right position you’ve decided to enter. When you ask them about this, mostly they say, it is due to technical bugs.

3. Slippage

Slippage method of trading against traders is a bit similar to re-quoting technique. In slippage, brokers slip the price when a trader wants to enter or take a position. They slip the price and when you want to enter, you enter for the higher price than the price you wanted to enter.

Market makers do not execute this technique to trading against the trader in a manual way but, this trick is executed through automated and some special settings of the platform. When market makers are asked about this problem, they generally give the reason, it is due to market conditions, volatility etc.

4. Stop loss hunting

Market makers earn their profits when you take positions. They also charge you when you buy a currency pair. The total number of pips charged by a broker is called spread.

In this cheat, they have robotics or some employees hired to monitor the trade of their clients. When a trader goes for short the position and sets to stop loss and, when the market goes against his position, and when it becomes so close to the stop loss, robots or hired employees increase the spread manually to help the price hit the stop loss hunter. This is the way they cheat their traders.

Conclusion

Forex market consists of thousands of brokers who offer their potential customers many benefits when they register with them. They attract their customers with the help of using different advertising media. Most out of them are the ones who cheat against their clients.

Thus, market maker forex brokers use different ways to cheat against their clients. So before selecting a broker, a trade should check out services offered by selected broker and should also check reviews of that broker.

How forex brokers cheat traders

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How forex brokers cheat traders?

The forex market has evolved a lot since the days before the retail forex market existed. Every day a new forex broker open up shop, and every day new forex trader fall into their traps. That is not to say that every single forex broker is a scam, that is simply not true. However, unfortunately, there are many brokers who take advantage of new traders by promising them things they cannot deliver upon.

Whether the broker is offering exclusive bonuses to open an account, extraordinarily high leverage with which to trade, or competitive spreads on the various currencies, many brokers make promises and then deliver nothing other than disappointment.

It is important that traders understand how the whole forex broker thing works. Depending on the type of broker, it is a common occurrence for your broker to take the other side of your trade. What this means is that when you lose, they gain and so their best interest is to make you lose. Now, does that sound like a broker you want to depend on for customer support and a stable trading environment?

Some of the tricks a forex broker will play on traders is execute the traders requests with a delay so that they gain from the late response, as well as other tactics to make the trading experience all that more difficult.

I am not even going to talk about the full fledged scams out there that actually take a traders money and do not allow them to withdraw funds after they made some nice profits. Sounds pretty insane but that is the unfortunate reality of the forex market.

It is for this reason that reading forex reviews and doing research before choosing a forex broker is not al luxury, it is a necessity every forex trader cannot afford to miss.

Ask the traders: do forex brokers cheat traders?

How do forex brokers cheat traders and ways to avoid forex broker scam

Dear investmenttotal.Com admin, I want to ask what are the reliable forex brokers in canada and do you think forex brokers cheat traders especially those retail traders who has only small capital?

Example forex brokers cheat traders

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Ask the traders: do forex brokers cheat traders?

Now, let us ask many professional, experienced traders all over the world. Leave a comment below if you experience this kind of cheating activity of forex brokers.

Be careful not to post affiliate links of forex brokers because we want to have a safe a community of forex traders here. Thanks! Write your opinion below!

How to know if your broker is trading against you

The simple truth is that most forex and CFD brokers are trading against their clients. The details in how this is accomplished vary greatly from broker to broker. Broadly speaking, we can say there are two types of brokers: A book brokers and B book brokers:

A book brokers may technically be trading against their clients in that they are taking the opposite side of the trade, but they generally are taking a risk neutral approach to the market and are looking to immediately offset the trade. So they are not trading against their client in spirit, only in technicality.

B book brokers will choose what positions of their clients they wish to offset. As such, they are willing to take a directional position in the market, and thus may be trading against their clients in a more material way. For instance, suppose the B book broker wants to take a long euro position in the market. To do this, they may not offset the short euro trades their clients have put on; rather, they will simply take the other side of these trades.

A book and B book brokers can both run into big problems - for themselves, and in turn, their clients - if the larger banks and brokerage firms they offset orders with no longer take positions. This risk is known as liquidity risk. We saw liquidity risk have a devastating impact on both A book and B book brokers when the swiss national bank unpegged the swiss franc from the euro, resulting in a huge move in a matter of minutes.

You can ask your broker directly about their dealing desk policy. This is largely because they feel uncomfortable about admitting their status as the counterparty to your trade, and because they generally do not educate their staff in the nuances of how they operate and make money.

Iam glade to know about broker infos ifind it great and thanks so much for it please try to send me infos about theme

so, let's see, what we have: 6 ways forex brokers cheat you making money through forex trading needs 3 requirements to be met at the same time: techniques proper mental situation proper brokerage service at how to cheat forex broker