The broker is known as a market maker and market maker takes the other side of your trade.
Broker and you, what a nice relationship! Okay, you think your Forex broker is on your side. Nice! Wonderful! I’m excited! You have it! You found the best!
But, are you sure that your broker wants especially you to be the winner? At the same time, 95% of Forex traders lose. And you have special status? Really?
Do you really think your broker has built his business on the minority 5% who win? C’mon! Don’t be silly!
Whether you’re already in the 5% elite (congrats) or working your way to it, you must know these three things. It can make the difference between long-term successes or Forex failure.
How does your broker see you?
Really, what does he think about you? Actually, from your broker’s point of view, .you are an “A” group or a “B” group.
The broker is not emotional. He has numbers and percentages in front of him.
One group traders make up the 95% who constantly lose and the other traders are people who have been consistently profitable or more than 3 months.
Group A, group B. 95% or 5%. Nothing else. If you are a newcomer, the broker will automatically add you to the “A” group until you prove otherwise.
You have done nothing to be there, you are beginner!!! You just opened all of this for your first time!
The answer is simple, your broker knows that 95% of new traders will lose, so he’s 95% sure he’s put you in the right group.
Well, he isn’t sure 100%, notice that! If you lose, he wins. Only that matters!
Forex brokers are known as market makers and market maker takes the other side of your trade. Never forget that someone somewhere is holding the other side of your trade.
Let’s say you decide you sell 1 standard lot of EUR/USD. Now for you to take that trade, someone else has to buy 1 standard lot of EUR/USD. Right? In other words, there always has to be a buyer and a seller for a trade to take place.
If your broker is a market maker, he’s holding the other side. In other words, if you win, he loses.
But a bit unpleasant. Brokers make most of their money betting on the fact that you are going to lose. This is the conflict of interest 1/1!
Honestly and fortunately, the majority of brokers don’t take the other side of your trades.
Instead, they pass them on to other traders, acting more along the lines of what you had in your mind that a ‘broker’ is. Most of them simply connect buyers and sellers and take a commission on facilitating the trade.
Your broker, your true and professional broker, will never take the other side of the trade, and he will never bet against you as a client. This secret has been revealed! Share with others!
And be cautious, it never can be too much.