The Truth behind Forex
Trading revealed by S.Arvind
Welcome to "Forexnext.com" official website. My name is S.Arvind. Thanks
to all the wonderful people studying Forex, the "Forexnext" website has
become a huge success. I put this website together to try and help
aspiring traders learn the truth about the Forex and try to prevent them
from being taken advantage of by misleading marketing about how trading
can bring you riches without much effort.
Where there is money involved, there is often a way to catch those who are
not careful with them. Forex is a perfect place for scammers to test their
skills and imagination in setting traps for traders of all ages and
nations. Forex trading itself is not a simple adventure and requires a
lot of studying, research and practice. Not many are able to carry out
the educational part of becoming a Forex trader from start to finish, many
fail in an attempt to make a shortcut to easy profits. Those traders
become clients of such scam systems once they realize that can’t profit in
Forex relying only on own knowledge.
The truth is that trading is not easy but it can be learned and
achieved if you have the right information. Everyone has different
opinions and trading strategies. Some of them are scams and can cost you
everything you have if you’re not educated. But there are a few out there
that can give you the edge you need to help you become successful. In the
end, it’s all up to you. You are responsible for your own financial well
I've bought so many Forex e-books, indicators, programs, buy/sell signals,
and more that it’s unreal. The one consistent thing that I have found is
most people giving advice are not consistent with each other. This was
very frustrating to me. One source says buy while another says sell? WHAT?
Who do you trust? Who is really telling you the truth?
There are so many SCAMS and
LIES told by self proclaimed guru’s
selling high dollar trading systems its mind boggling. I, myself am a
victim as well. No wonder over 90% of traders loose everything inside
of their first year of trading!
So in this revelation, I've decided to put all of my research in your
hands. My Forex package includes everything I've learned, found,
discovered, and uncovered about the market, those who trade successfully,
those who loose, the strategies that don’t work, and the few that do. I am
also exposing the lies and misconceptions that about I've learned while
trying to find the perfect trading system.
THE TRUTH BEHIND SOME FOREX BROKERS
To trade in Forex we have to find a good Forex broker. Think every Forex
broker is honest, good and is going to help you earn money? Think again.
Forex brokers are in this industry not because they want to help You to
become rich, they are here to be rich Themselves. Never forget
about it. It is the true face of the retail Forex industry.
I’m going to help you be an educated player in what is a truly broker’s
game, and see the pitfalls hopefully before you fall into them and get
your pockets full of… no, not money, in that case, but full of dirt.
Shall we start? ....................
What the difference between
'Non Dealing Desk Broker'
and 'Dealing Desk Broker'.
Who is NON Dealing Desk Broker ?
Non Dealing Desk (NDD) forex brokers provide access to the
interbank market without passing orders trough the dealing desk. With true
Non Dealing Desk brokers there are no re-quotes on orders and no order
confirmation. This, in particular, allows traders to trade during news
time with no restrictions on trading.
ADVANTAGES OF THE NON-DEALING DESK BROKER
1. Market Makers: Non-dealing desk brokerage firms do not trade
against their clients. As facilitators of trading, they do not take
positions that may from time-to-time conflict with the interests of
2. Market Access: Non-dealing desk brokers offer every trader, big
and small, equal access to the interbank market. The rates (bid and ask
prices) on a non-trading desk platform are not those set by an individual
broker but those derived from active trading between participating banks,
institutional investors, FCM's and individual traders. The process itself
makes every trader regardless of size an independent market maker.
3. Stop Loss Hunting: The Non-dealing desk broker does not know or
have a need to know your positions so stop loss orders are not/cannot be
targeted for takeout when a broker has a need to meet liquidity
Note: There is a growing suspicion that dealing desk brokers spike rates
to take out trades when it suits their purposes. An insider a friend of
mine talked with recently, a key programmer working for a dealing desk
brokerage firm on the East coast, acknolwedged that brokers spike rates of
up to 10 pips on a routine basis and for a variety of reasons. Whether
used to fill unbalanced trades, leverage the broker's own account, or to
meet immediate liquity requirements, spiking is a fact of life and
difficult to prove. Sooner or later he believes the NFA will find a way to
document the practice, but until then a lot of dealing desk brokers will
continue to manipulate rates to their own advantage. At this point, they
don't have any compelling reason not to.
4. Pure Pricing : Non-dealing desk broker rates as well as bid/ask
prices come directly from the interbank system. They are not filtered or
otherwise manipulated to maintain established (undisclosed) profit margins
or spiked by the broker to gain a trading advantage.
5. Reorders : Traders never get "re-orders" from a non-dealing desk
because they serve no purpose - the broker has nothing to gain or
6. Full Disclosure : The non-dealing desk broker's fees are limited
and clearly disclosed.
7. Transparency : No mind games. What you see is what you get.
Forex brokers truth. Trading platform
If you tried trading with at least two Forex brokers, you may have already
noticed that every Forex broker has own time zone settings for their
Having data displayed in the right time zone is crucial for many aspects
of Forex trading. Daily and weekly charts can easily have different values
and price ranges if a new daily candle on one trading platform appears at
00:00 GMT, on another platform 2 hours later at 00:00 GMT+2, and on the
third platform 5 hours earlier at 00:00 GMT-5 (EST)
you are using automatic pivot points, they will be calculated according to
your time zone and daily candles. As a result — your support/resistance
levels will be different form what other traders may have. If you are
trading daily breakouts, your breakout entry points will differ from other
traders’ orders. And finally, every single indicator can behave
differently. Enough, I think. There are many nuances of that; an exception
could be maid only for intra-day trading: starting from 1 hour time frame
and lower you won’t care much about time zones (except for pivot points
levels, and may be few other studies). Have you ever been into a situation
where, once you’ve changed a broker, your old strategy seemed to start
performing worse or even failed completely?
When discussing trading systems on forums, some traders report amazing
results while other traders while being 100% disciplined in trading can’t
achieve any similar performance… I wonder why…
Time zone settings on majority of Forex trading platforms cannot be
changed. Some brokers use this factor to their advantage. Instead of
picking for their trading severs the most common time zone(s), where the
largest Forex markets operate: London (GMT) or New York (EST), brokers
choose other time zones, like GMT+2, +3 etc.
I can’t explain why they do it. Except, probably, for those brokers who
decide that platform time zone should be the same as the location of the
company. But I’ve seen unexplainable cases, when broker company is, say,
in New York, and they set time zone for their platform (randomly?) at
GMT+6… Why would you do that? Probably to make sure no strategy works well
under this conditions…
I can sound overly cautious and concerned with those time zones, but it
doesn’t eliminate the fact that the platform’s time zone plays a
significant role in one’s trading success way to often to be completely
Brokers Spread Tricks
Forex brokers are not truthful. They lure people in with hype and false
advertising: "No commissions!" "Guaranteed fills." "24 hour trading:" Who
in their right mind is going to trade in the middle of the night unless
they have a special need.
you have heard that if your are winning regularly in forex, you may be
barred from trading. Is this true? Yes it is. The fact that is true
is just another proof that when you trade forex you are trading at a
bucket shop. In the book, "Reminiscences of a Stock Operator, " we
are told that Jesse Livermore was banned from trading a certain stock
brokers because they couldn't stand him beating the housel. The same thing
is true with many forex brokers. Since they are the ones guaranteeing you
a fill they in effect the buyer and seller of last resort. The truth is
that most forex brokers have precious little liquidity at their firms. In
order to give you the impression that there is liquidity, it is the broker
who gives you your fill. It is the broker who does the stop running that
supposedly doesn't exist in forex. But if you are regularly beating the
socks off the broker, he will ban you from trading at his firm.
This should be easy. Only an inexperienced trader takes the first
recommended broker. Others do lots of comparisons before settling with a
choice. One of the comparison criteria is brokers’ spreads for different
currency pairs. If, for example, I know that my strategy requires trading
USD/JPY and GBP/JPY, I’ll go and check all available spread options with
different brokers and will be looking to pick the lowest spreads for the
currencies of my choice.
Same selective tactics apply when shopping for leverage, margin, lot sizes
way for Forex brokers to attract a client is to advertise about lower
spreads. A broker would say that their spreads are “as low as 0.7 pips”.
There comes another wave of “they think they are smart” traders, who are
glad to take such a bargain. What traders don’t realise while comparing
the spreads it that those spreads are variable. Unless you are trading
with true ECN broker, variable spreads could be quite costly. The problem
with variable spreads that traders always complain about is: you seem to
never get a spread you’ve been lured by in the advertisement. Variable
spreads will vary depending on the market volatility and liquidity. Higher
volatility — higher spread, lower volatility — lower spread. At the same
time: higher liquidity - lower spreads, lowers liquidity - higher spreads.
Could be difficult for a beginner trader to get a grasp on it at first, I
Opposite to variable spreads are fixed spreads: fixed spreads are easier
to trade with, they don’t vary no matter what. (*Fixed may increase during
news announcements. If that’s the case, a broker will warn about it).
Additionally, variable spreads go wild during news time. Biggest suckers
(sorry…) come to trade with variable spreads during news releases. Ever
seen a spread 40 pips wide? Yes, that’s what you may pay one day for
opening a position during news time if you trade with variable spreads.
(*At times fixed spreads may surprise in the same way. Be warned.)
If you go with a broker whose spreads are variable, you’re signing a
contract to take “whatever is offered to you” at the moment of opening a
position… This “whatever” can be very different from what’s been
advertised. On the top of that you’re signing in for an additional
headache of looking at spreads EVERY TIME you open a new position.
Unregulated. Forex may sound like an exchange but it isn't. It exists
entirely in cyberspace with every broker and every bank having different
prices for any particular currency. There is no regulation, even for
brokers who register with the CFTC and the NFA. Forex brokers do not have
to mark to market each day as do futures brokers. If your forex broker
files for bankruptcy or absconds with your money you have zero recourse.
No guarantee. If a forex broker does go out of business, you could lose
all your money. There are no guarantees and no one standing behind it.
But don’t run so happily now towards fixed spreads… Fixed spreads, you
won’t believe it… can also widen. This warning is written on every broker
website where you have fixed spreads. Every serious shakeout in the
market: news, economic shifts other global events will immediately cause
fixed spreads to expand, unless a broker promises to never widen a spread.
It is your duty to check the spread before you enter with it.
ECN brokers provide the lowest variable spreads, which is the best deal,
yet there is a commission cost to be paid on top. STP brokers can also
offer variable spreads, but you have to monitor the spreads closer than
ever. Market makers can offer variable spreads - here you have to be very
cautions and look at spreads before you jump in each trade. Fixed spreads
are common among Market makers and STP brokers, who get quotes from larger
market makers: fixed spreads are usually wider than variable, but in the
long run may actually be equal in the cost as they remain stable most of
Forex brokers hunt for my stops!!!
Just relax, would you? Now take a deep breath and let’s think: no one in
this world needs your stops and your little money. No one will go an extra
mile to hire a person or create a software to make specifically Your stops
“…BUT, - you may scream, - JUST TAKE A LOOK AT MY CHARTS!!! The market
came and took out my stop and then only turned in my favor leaving me
behind with a loss!”… And then you would probably add: “…and that’s not
for the first time! I swear, just look at my new charts, screenshots etc.”
Relax. Have you ever tried to figure out why this would happen to you over
and over again?
(Whispering….) Shhhh…. They [brokers] spy on you! They know where your
stop is and hunt for it!!!
Ha-ha, did you believe that? Yeah, you did.
P.S. the world is not perfect. From time to time we encounter unfair Forex
brokers on our trading horizon. But those brokers get penalized very soon.
If you want to have just a bit of additional confidence in your broker,
check if they are registered NFA members.
If you happen to trade during the news, keep in mind that news create
serious spikes and many stops are taken out during those times. Also it
doesn’t hurt to know that Forex brokers use news announcement times to
their own advantage. Remember, your broker isn’t stupid, he knows (and, by
the way, warns you) that during news times the volatility can increase
dramatically; what a broker doesn’t tell you if that they are using those
precious news minutes to add up to the volatility on the price charts and
in this way try to take out most vulnerable/closest stops of naive Forex
Brokers Shocking Truth: ECN, Dealing Desk, Spikes, Spread Manipulation
and other dirty tricks...
Lastly, I just want to
give hope to all of you who are not yet successful in the Forex
market. Avoid the guru wolves at all costs. There are many of them out
there and they are in sheep’s clothing. I am NOT one of them. I am one
Don’t give up on trading. It will change your life. Feel free to
contact me anytime with any questions or comments.
Good fortune to you!
Now you know the truth about forex. I challenge any and all forex brokers
to prove that I am wrong.
Forward this letter to any forex trader you know. Aspire
to Inspire, Before You Expire!
Please share this Article with your Facebook friends :< INNOCENT TRADES SAVED FROM DEALING BROKERS
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