Did you know that majority of Forex brokers which operate as market makers (Market makers don't put your orders on the global trading arena, they literally make the market for you inside their company by Buying what you Sell, and Selling to you when you want to buy), so, did you know that those brokers play odds game when luring you to open small accounts with them? They are more than confident that you'll lose your first account within 2 to 3 months of trading, and, since they make the market for you — trade against you — they'll have that money as a profit.
Forex brokers are excellent risk managers, so don't worry about them if you think they'll lose when you begin to win. They analyze clients' trading and risks, so that while still taking trades against one "easy target" client, they'll protect themselves against more advanced clients by not trading against them, but rather offsetting risks by immediately placing equal orders with other financial companies.
Good explanatory scheme about Dealer System can be found at http://www.100forexbrokers.com/stp-ecn-brokers
Besides that, we all know that brokers earn their income on spreads and commissions.
Forex brokers have direct interest in having you as their client; they won't tell you all those trouble stories about Forex trading truth to scare you out; their goal is to show that making money in Forex is an achievable goal, and you can be successful. To make you even more confident they'll offer low spreads, free trading signals and market reports, they'll give you tons of trading tools and advices, they'll even give you free strategies to trade upon... and yet, you are going to fail sooner or later, and they know it. Market maker Forex Brokers compete for clients, because if a client fails, he'd better bring that money to their company and not to a competitor.
Sunday, March 22, 2009
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