First of all, the concept of a Raw Spread has not yet been massively understood by the trading community. The reality is that a lot of traders are trading with a Market Maker, which has a dealing desk and could put your success in great danger, as it rises a conflict of interest between the trader and the broker. The truth with a Market Maker is that you will trade against your broker, and you can bet that he wants to win your money.
But don’t be at ease just because someone claims to be a Raw Spread, often they are still not fully true.
You need to be looking for the bad broker signs, and if your broker has any of it, be critical and investigate further if you really have the best broker in the business.
Fortunately we have made a list on what to look out for!
Bad practises of bad brokers:
– They offer deposit bonuses for clients. There are no free lunches in business so understand that they will collect their money somehow.
– They have a dealing desk. You want a broker that’s a NDD, (no dealing desk).
– They offer a minimum stop loss. For example: you can’t place it within 5 pips. Why would they need to control you?
– They hunt your stops. They manipulate the price so that you will be stopped out.
– If you are trading with a Market maker, you are not even trading in the market! You never reach it, you only trade with the broker! So if your broker is on the other side of your trades, you can bet that he gains on your losses, and also lose when you are winning. That’s some obvious conflict of interest right there.
– They don’t offer a Raw Spread account.
– They won’t give you a recite of your order, so that you can confirm it went to the real interbank market. You should be able to see what bank (liquidity provider) you traded with.
– They don’t allow scalping or other strategies. This is crazy, why would they not want you to trade often? Because it’s harder to control you!
– They don’t provide spreads from 0.0 pips. This is an obvious fact that you are overpaying.
– They have conflict of interest with you due to their partnership with a liquidity provider.
– One of their liquidity providers belong to the same company as your broker.
– They route your order to someone special or sells it, leaving you with additional slippage.
– They don’t let you benefit of positive slippage but only on the negative, taking your slippage profit as their own.
– They manipulate spreads, often to stop you out.
– They change margin requirements on weekends, forcing you to change your positions.
– They do re-quotes.
– They apply a high markup on swaps.
Now you might think, where in the world will I find the best broker?
Okey you got us… We found it for you. Before we partnered with IC Markets we spent alot of time comparing some of the biggest brokers and we always saw a flaw in any of them. Only IC Markets stuck with us.
It was really important that we work with a true broker, that does not have bad practices. We believe that many traders are unprofitable just because they are with a terrible broker. Of course it would be impossible to be profitable if you are overpaying or are being tricked.
Other things mattered also with IC Markets, such as 24/5 support, the funding and withdrawal options. Two different platforms and three different account types to suit everyone. Competitive commissions and great average spread. But most importantly, none of the above signs.
Find a list on IC Markets benefits here.
Also remember that when you start trading with IC Markets through us, you will get the best of the best, and at 30% reduced commission/spread.
Feel free to google about “Market makers” and dirty practices, you will face disgusting practices brokers use. Please also learn about Raw Spread, so that you can make an intelligent choice when selecting the best broker.
Also remember that many traders is being charged over 10$/lot or 2 pips in spread. That’s crazy. Join IC Markets today through us and trade at only 5.5$/lot on Raw Spread account and from 0.7 pip spread on Standard account.