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FX 101:
First of all brokers are simply middle
companies, that broker transactions between both customer and bank. This creates
a margin of error between the two entities which brokers exploit. Let me
explain, anytime an entity plays the middle, a margin of error exist due to the
time it takes for a transaction to complete. A completed transaction takes an
average of lets say 3 min., within this time the market can move drastically. This
gives the brokers leverage on a particular trade made, since they are the
brokering firm, they control the feed, or price you are seeing on the platform.
Within the time it takes to complete the transaction, the price of the traded
currency pair could move against or in the brokers favor by the time they have
completed the transaction with the bank, either way they win, if it went
against, they skim more from the top, if in there favor, they skim less. The point
is, brokers are using the clients risk capital to make profit from exploited
transaction times. As long as brokers have full control over pricing, the end
user will never get a fair trade. If you ever had a stop/loss executed, and you
know the price never reached your s/l, than this is a sign of price
manipulation.
Manipulation Example
AFXI is a company that simply provides
services to help forex trader’s trade successfully, however in doing this, we
also want traders to understand that we are disgusted with how most brokers are
sucking the life blood out of many investors trying to make a buck in this
market, and feel obligated to educate all trading forex. AFXI has traded with
many entities, and has not yet found one that can compare with Advanced Markets Corp.. AFXI
wants you to know that not only can one trade with us to get a platform that
enables you to trade directly on a pass-through bypassing the risk of brokers
trading against their client. We truly hope that this information will allow you
to make the right decision no matter what institution you decide to trade with,
best wishes to all, GB
AFXI
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