All Brokers Scam… I Tell You How…
Hello everyone,
After reading so much about scam and how people continuously lose money in the Forex world, I have felt I need to tell people a piece of knowledge I have about how brokers take everyone´s money legally. The following is a notice I got from one of my brokers in which all is exposed. After you read this, you will have an idea of what brokers actually do but in any case I will translate the paragraphs into simple words.
This is an annual notice from the broker:
“INTERBANK FX, LLC - PRIVACY NOTICE
Interbank FX is a registered Futures Commission Merchant and is regulated by both the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). As part of the NFA's ongoing requirements, Interbank FX is required to provide customers with information regarding the NFA's Background Affiliation Status Information Center (BASIC System) and our firms Privacy Policy on an annual basis. To learn more about the NFA BASIC System, you may visit the following website: …
Further down you find this…
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. INTERBANK FX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, INTERBANK FX, LLC'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS INTERBANK FX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES INTERBANK FX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANK FX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.
IF INTERBANK FX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANK FX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANK FX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANK FX, LLC OR ANY OF ITS SOLICITORS.
- The IBFX Team”
As you can see, this is a registered and controlled US broker, all is legal here. So, wherever they do to trade against you is legal. Now, let´s brake down the whole thing…
“THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE.”
Most brokers people use are intermediaries, this means you are not trading in the real market (exchange market),
“INTERBANK FX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY.”
This means you are actually trading within the broker´s system.
“AS A RESULT, INTERBANK FX, LLC'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS INTERBANK FX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES INTERBANK FX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANK FX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.”
This means that the prices they present to you in your platform are not the real current prices; they are actually manipulated and calculated in the most suitable manner in favor of the broker. You must understand that they are there to take your money. In fact, they have a window of up to 250 pips to work with (I know this as a fact). This also means, that the charts and prices you get are the ones constructed by their platform software calculating every single trade, balance, equity, free margin, used margin, lots, stop losses, take profit, etc. In addition, their software and prices are “ahead of time” in the market relative to you because they know the price way before you and have the advantage to do all this to benefit the broker (intermediary). You must be wondering, but I see that the prices are very similar from broker to broker and from account to another account. Not so, to the eye is, but to an expert eye you find the differences. Some of these are time delays, server disconnections, re quotes, sudden volatility, price freeze, on top you get system access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. These are all different ways to manipulate the price so it goes against you 90% of the time you trade. Eventually is you are in the right market trend the broker has to give up and give it to you. The problem is that their window is so great (250 pips in normal market conditions) that they have many opportunities to take the client´s money. Remember, they are telling you, the broker “MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.”
“IF INTERBANK FX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANK FX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANK FX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANK FX, LLC OR ANY OF ITS SOLICITORS.”
Plain and simple, they ALWAYS trade against you. It is only when the market´s trend is so strong in one direction that they have to give up some trades. Of course there are other factors that make people lose the money trading. Greed, fear, and other psychological factors affect the way you trade and they are all used by the broker´s software. As the notice says, you must not believe in any case the price they are showing you in your platform or the indicators.
You must be asking yourself by now, then how can you trade and win if they are always manipulating the prices to their benefit?
This is almost impossible unless you know how. The only possible way is to be able to trade both ways at the same time in such a manner that the price is “trapped”. This is not hedging. Hedging creates loss because you have to pay the spread and also the gap between the two trades. On top, if you have noticed, most of the times you hedge a trade, suddenly there is slow movement in the price or if you release one trade the other suddenly goes against you. This is because of their price manipulation.
So, how do you do it to win most of the times and make real money?
I am making 100%-500% profit a month trading in such a way that the price is “trapped” in such a way that no matter what the broker does, what trend the market is, volatility or any of the other ways the brokers use to take your money affect the trades.
I want to make a contribution to this forum and is FREE. I want to show everyone here how I trade live. You can see me trade free, I charge nothing. All you have to do is download the Meta Trader 4 platform now from FX Pro and login into:
Go to file and then to login
In the box:
Login: 59503
Password : Trapped1
Select the server and click login, you should then be able to see the account.
You can see the account and test it works so you are ready…
I have opened two trades in that account just for you to see that the account is active but that is not the system I am talking about.
I am going to be trading this account live periodically until then but I have planned to trade live the account on Friday June 13-2008 starting 9am New York time, so be ready then so you can see how to trade and trap the price for you to make money ALL THE TIME. If the broker goes up, you make money, if the broker goes down, you make money. I am going to trade the GBPJPY on Friday to show you that volatility and this pair (hardest to trade if you know what I mean)
I want to make a poll:
How much profit do you make a month?
Options:
1. Lose money
2. 0%-10%
3. 10%-20%
4. 20%-50%
5. 50%-100%
6. 100% up
This will reflect how many really successful traders are out there. Be as sincere as possible, this will help people have a real sense of trading Forex. Please rate the information I have given you here to give me feedback to see if is worth placing other information I have.
)
