What are brokers doing?
I have a few questions regarding the fxtraders relationship with brokers.Being new in the forex market I early on got the picture that when a trader opened a position on a brokers trading station that we were kind of tapping directly into the international market. A recent post on another thread by someone called Pittsburghfx who said he was a former FXCM employee painted a different picture. So here it is…if I open a position EURO/USD with a spread of 3 pips give myself a 15 pip stop and the position closed at my stop me loosing 15 pips…who gets the 15 pips? I know the broker gets the 3 pip spread…that’s understood, but it isn’t understood (to me at least) that because my little 1 lot transaction was traded “inhouse” that the broker kept my loss…that most transactions are done “inhouse” with brokers.
That being the case (and I may be mistaken again) doesn’t it open the door for some misdealings? Is there not an incentive or temptation on the broker’s part to “tip the scales” in the direction that profits them (using the “live”feeds on price)… is that what slippage is about...that means we are not just putting money against a particular position but against what may best for the broker as well.
I’ve seen posts on this forum that have been gripes about such things but have dismissed them because I’ve not seen this point of view before. Could someone help me out on this one? Simply please!
Practical-1
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