The perception of brokers as the “enemy” of the forex market is not universal, but it may come from some things that some traders may experience or believe. It is important to note that not all brokers are unscrupulous or hostile, and there are reputable brokers who prioritize fair trade and client satisfaction. However, some factors may lead some traders to view brokers with suspicion or mistrust:
Conflict of Interest: Some traders believe that brokers may have a conflict of interest with their clients. For example, if a broker operates a dealing desk (a market maker), they can take the opposite side of their clients’ trades, which means the dealer makes a profit when the trader loses money. This can lead to a perception that the broker has an incentive to see traders fail.
Stop Hunting for Loss: There are instances where traders suspect that brokers are manipulating prices or executing trades in a way that intentionally triggers stop-loss orders. This behavior can be seen as an attempt to force traders out of winning positions and lead to distrust.
Slippage and Requotes: Traders may experience slippage or requotes, especially during periods of high market volatility. While these may be normal market events, some traders may interpret them as the broker being manipulative or not providing fair execution.
Hidden Fees and Costs: Some brokers may have hidden fees or costs that traders are not aware of, leading to frustration and feeling cheated.
Lack of Regulation: In some cases, traders may encounter unregulated or poorly regulated brokers who engage in unethical practices. This will damage the reputation of the entire industry in the eyes of the affected businessmen.
It is important for traders to do thorough research before choosing a broker and to choose reputable, regulated brokers that offer transparent and fair trading conditions. Additionally, understanding the risks associated with forex trading and adopting a good risk management strategy can help traders protect themselves from potential issues they may face with any broker.
Aduro's Disruptive Oil Upgrading Technology Moves Closer to Commercialization Alberta's oil sands produce vast…
WINNIPEG – The following is a glance at the news moving markets in Canada and…
Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow…
The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California…
China’s ‘Lehman Moment’? Which domino will fall next as property crisis grows? South China Morning Post…
LONDON, Aug 23 (Reuters) - Euro zone business activity declined far more than thought in…