Should you look for a new broker?
We noticed that the understanding of brokers are very low, and unfortunately almost all traders are paying to much commissions.
First of all, the concept of a Raw Spread has no yet been massively understood by the trading community. The reality is that a lot of traders are trading with a Market Maker, which itself has a dealing desk and could put your success in great danger, as it rises a conflict of interest between the trader and broker.
But don’t be at ease just because someone claims to be a raw spread broker, often they still are not.
We at Trader’s Fx Partner got your back and have a list for you. It’s about the bad brokers practices. If your broker has any of it, be critical and investigate further if you really have the best broker in the business.
Bad practises of brokers:
– They offer deposit bonuses for clients. Either deposit bonus or other types. 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 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.
– They have conflict of interest with you due to their partnership with a liquid provider.
– One of their liquid 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 add 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.
But other things matter also, such as 24/5 support, funding and withdrawal options. Two different platforms and three different account types to suit everyone. Competitive commissions and great average spread, and much much more. Please read more on the website.
Remember that our partnership is unique and when you register through us, you will get the best of the best, and at reduced commissions.
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.
So become a member and we will hook you up with IC Markets at reduced commissions. Trade at 5.5$/lot on Raw Spread account and from 0.7 pip spread on Standard account.