Former city trader reveals TRUTH behind Forex brokers.


Are your losses the brokers profits? And does it really matter? Now in this short video, I want to talk to you specifically about the broker. Is the broker your friend or enemy? Now, much is said about the forex market and the involvement of the broker. I’m sure you’ve heard those conspiracy theories that the broker is out to get you. That the broker is always looking to see where you’ve placed your stops in order to stop you out and make you lose money. So we’re gonna discuss. Is this true? Well before we answer this question, we need to explore the different types of brokers. How they’re structured and how they’re set up. You have two different types of broker. You’ve got what we known as the “A-Book Broker” and the “B-Book Broker”. Simply put, an A-Book Broker, now, he will funnel your trades straight through to the interbank market and match your trades with some other trader somewhere else in the world. He doesn’t care whether you make or lose money. Now, he will make his commission by charging you a small commission per trade or transaction. And sometimes make some money by increasing the spread from what he’s getting from the interbank market. Now on the other hand, a B-Book Broker, now, he will be taking the other side of your trade. So if you win $100 on the trade, he’s gonna lose $100 on that trade. Now as you’d expect these brokers will literally have thousands of clients from all over the world and these traders are classified in two ways. First of all, you’ve got the profitable traders. Now that’s those that make consistent gains over a period of time. Not just one big gain. Then you’ve got the losing traders. Now these will make consistent losses over a period of time. All those that just come into the market with $500,000 and want to gamble away their account and end up blowing up. Now a broker will typically know if you’re likely to be a winner or a loser. So how do they know this well? They employ what are known as “Quantitative Research Statisticians” also known as the “Quant Guys”. And these are basically employed to build fancy statistical models that define the traits of a losing trader. For example, they will look through your trading history and identify the leverage used, where you place you stop, the time is the day that you’re trading, the number of trades and so forth. It will help them build a picture over the long term on how you’re likely to perform. If their analysis deems you as a losing trader over the long term, they’re going to funnel your orders into the B-Book. Basically meaning they’re going to be taking the other side of the transaction. So for example, if you’re buying the Euro/USD, they’re gonna be selling you that and they’ll be taking the other side of the trade and therefore the market risk. If you make money on the trade, they will lose money on that trade. Now if the quant guy identify you as a profitable trader, he assumes you’re gonna make money in the long term. If the broker simply will then push your order through to the liquidity providers he won’t take the other side of the trade. But be absolutely ludicrous for him to take the other side of the trade. If his quant guy is telling them that basically, you are a profitable trader over the long term. So how does this affect you? Well, I don’t think it does really. And in fact you’re pretty much unlikely to know whether your trades are going to be placed on the A book or the B-Book. Although I guess it would be quite nice to know if you are on the B-Book that these highly sophisticated quant guys deemed you as a loser, you may want to change what you’re doing. Do the B-Book brokers that’s those taking the other side of the trade always make money? No, of course not. They will have their losing periods as well as traders become profitable. Usually during the trendy markets. But the quant guy knows that in time you’ll eventually give the money back to them so they just let It continue. If you were to become a consistently profitable trader over time and the losses were and the gains were substantial, they would simply move you from the B-Book back to the A-Book. But again, you wouldn’t even know about that. Some brokers will either be one of the two, they will either be A-Book or B-Book and some brokers will have both capabilities. There’s also another type of broker which are known as the “Dealing Desk Broker” or the “Market Maker”. These are also B-Book brokers. But they basically, wrap a price around the interbank market price, and they will give you a fixed spread. Unlike the STP broker where you have floating spreads the —- quotes are always changing. The broker will have complete discretion or whether or not to fill your order. Generally speaking there is no commission charged with a dealing desk broker. But it was make his money on the spread and your expected losses. If the broker constantly loses money by taking the other side of your trade and the losses are substantial, he may not want your business going forward. Knowing if your broker is a dealing desk broker or a market maker is quite important. A dealing desk broker is more likely to face accusations, accusations of unfair execution because he’s filling your orders at total with total discretion. Your losses are their gains, but more important your gains are their losses. So this could affect the executions if you’re trading with a notable size. Look, at the end of the day, if your broker that you’re using is regulated, it’s highly likely they’re not going to be corrupt. And all that to get you they’re not desperate to fill your stocks. But quite frankly there are enough losers out there capable of blowing up their trading accounts that they don’t really need too. Many failed traders believe that it is a conspiracy theory. They believe that the brokers are evil. The true fact of the matter is the reason why traders fail is not because of the broker, it’s because of the trader. I mean look,, if you’ve had a bad experience with your broker, do drop me a line. Leave a comment below. I’d love to hear from you. If you liked the video give me a thumbs up. If you don’t like the video give me a thumbs down. As I said before I’m big and bold enough to take criticism. Good luck with your trading careers and I’ll see you in the next video.

100 Replies to “Former city trader reveals TRUTH behind Forex brokers.”

  1. I have at least 3 platforms running from different brokers. One of them(I am not going to name it in public) always widen the spread for no reason and stop my trade, but the same trade with other brokers is fine. Every time I questioned them and emailed them the charts from other brokers, they will compensate for my loss, and they will give me some BS reason of why it happened.

  2. Hey Andrew, do you recommend your forex trading teaching site to learn for someone who is very interested in starting this kind of trade? Very patient person looking to try out something new to see if I can put my smarts to good use. Thank you so much for your time.

  3. Hello , pls which broker do you recommend for beginners like me. im demo trading right now and i use Alpari for my demo trades. Please i would appreciate if you can give me a heads up on which broker is best to use, or if i can continue with alpari.

  4. I'm new to trading but isn't there a 3rd type of broker – an ECN broker? It's my understanding (perhaps erroneous) that Electronic Communication Network brokers simply connect you to a liquidity provider such as a bank or fund, or another trader and charge you a small commission for doing so? Spreads seem to be very tight too.
    Is there any downside to using the ECN model?

  5. This info is nice to know, but without being guided to the Brokers opposite of what we are being aware of does a Trader no justice.. It's a problem without a solution…

  6. I've experienced the 30 year Traders still sharing the problems they know of without sharing how to overcome them (semi step-by-step @ the very least).

  7. Forex/binary option and stock trade are real with huge returns on capital but scammers are much in the system, one has to be careful with those false brokers they dealt with me seriously, Pastor Billy rescued me out of their hands by helping me to recovered some part of the capital from them with his strategy, Billy has the best strategy that gives winning all time i am a living testimony of his strategies.

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  9. my question is as follow I heard it somewhere as saying goes don't the Broker trade against you what exactly this means i need the interpretation of this statement

  10. I have seen a lot videos of diferent brokers but i know they are not certified and i never contacted them but it all changed when i saw a video and good comments about Mr Brian jarvis with his explanation he gave me more insight on how trading forex/binary options work with his strategy and am so glad that since i started trading with his strategy i am making $12K weekly with his strategy

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  11. I have seen a lot videos of diferent brokers but i know they are not certified and i never contacted them but it all changed when i saw a video and good comments about Mr Brian jarvis with his explanation he gave me more insight on how trading forex/binary options work with his strategy and am so glad that since i started trading with his strategy i am making $12K weekly with his strategy

    Feel free and reach him via email: [email protected]

  12. If you are a profitable trader consistently (or a very profitable trader), can you get booted out by the broker? Does that happen?

  13. I love all Your videos, really I hoped you made them earlier.
    really I suffered a lot of cash, starting early 2015, more than three years now.
    the help I need and would appreciate. If I am professional trader, and my trades are 8 wins to 2 loss, what broker YOU wud kindly Advice, even if you name one or two.
    Please keep on the beautiful videos.

  14. this makes perfect sense and it's all clear to me now.
    I am clearly in the B-book.
    I mean, I started selling NZDCAD last night and it seems my broker is buying the sh$t out of it.
    sometimes it feels like they were just waiting for me to take a position before they shoot it off in the opposite direction

  15. Hi Andrew would like to make contact so I could begin a process of learning and strengthen my little knowledge of FOREX trading. Really keen to educate myself in this field.

  16. This was great, I've been looking for "forex trading by name" for a while now, and I think this has helped. Ever heard of – Harperzon Forexify Equalizer – (do a search on google ) ? Ive heard some pretty good things about it and my brother in law got cool results with it.

  17. I've experienced brokers intended make traders lose money in turn of their profits. The traps include slippage, spread inconsistency, delay and many more…

  18. Why you were not here 4 years ago , when I was learning fx . Your videos are so good and educative , and a treasure for those new in this business . Keep the good work . All the best .

  19. In the market of Forex/binary options, you can only make it and continue winning when you are dealing with good strategy and nice Account Manager who can be up and doing, i suffered lost in the hands of dubious Managers until i connected to Mr Frank Robert through his email posted by fellow traders that was when i began to know that they are some sincere Account Managers/Nice Broker with great and wonderful strategies in the market, with Mr Frank i win weekly nothing less than $18k.usd, i will forever remain grateful to him.

  20. I'm doing some research before I get into the whole thing, really I need some help, I need to know when is the right time to trade

  21. Thanks for the video.Aside form that I would like to recommend one broker which is regulated. No withdrawal casualties either. Click here == t.co/9aBO1thZ4k

  22. TODAY $1170 viral-journal.com/TopTrade

    Brokers Stealing Traders Money. Is your broker one of them? Check now by Forex Peace Army(2017.12.27

  23. I just want to thank someone who i see as an hero, his forex trading strategy really placed me where i am today. all glory to God for bringing this person to my door step. MR MICHEAL his the great expert on binary & forex trading, would prefer everyone to look out for him cause he's the best you can ever have & that's his email address:

    [email protected] .com

  24. never taught doing forex trading business could be so satisfying. i spent so much time doubting till i came in contact with MR MICHEAL & working with him has been so much fun that i regret my months of doubting & ignorance. you can contact his email address: [email protected] .com? please send my regards to him & be blessed.?

  25. I say it with all boldness and conviction that forex trading is the real deal turning people into millionaires provided you have a working strategy and a trusted automated software. contact MR MICHEAL for more guidance if interested.

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  26. As a trader how do I become a profitable trader. I don't bank of broker to take my money all the time

  27. Some brokers are not very nice at all –> https://www.zerohedge.com/news/2017-02-06/alert-largest-us-forex-broker-fxcm-shut-down-and-permanently-banned-nfa

  28. From the credible broker of our trading we the traders expect many things but in real Forex trading we suffer a lot due to many scam brokers who always demand extra charge or commissions. So it is really difficult job to find the secured broker. Forex4you is one of the trusted and honest broker I seen in my life that’s why I choose them and never get anything wrong with them. They makes my trade comfortable by providing all necessary services.

  29. Forex trading is not magic…. You are not going to be a millionaire overnight, but its a good background to raise your finances at a steady growth….. You need a proper understanding on its steps by a SUPERB FOREX TEACHER to trade for you, So go with now and make your balance double within To night from here >> https://t.co/pbFk7a6mEJ .

  30. Set a new goal in your life. Always remind yourself the reason why you started when you feel like quitting. Remember negative minds achieve nothing. It is possible for you to make $30,000 in a month in binary options trading by following the right guidelines and the right trader. If you are interested in getting your trading account well managed with a profitable system that is 100% accurate, Start your trading from here >> https://t.co/p84BYGCqbZ .

  31. I am so much impressed with this creative binary trading app (Link Here >> https://t.co/2nQjFFyekI ). Backed with expertise, this robot works splendid and if not much, brings in decent amount of profits. Thanks so much the team for creating such innovative robot. It’s like a boon to the traders in earning consistent profits .

  32. Instaforex is a scam of the century, my account with $758 got blocked yesterday by their so called Anti fraud department for no reason, my only crime was that I suddenly became profitable after being a loser with many margin call for a long time

  33. In my little trading career with different brokers I made trading. To negotiate with broker Forex4you I recently started to. Like them I never seen any professional broker ever. To fulfill the requirement of their merchant they are always ready. For different types of traders they offer different types of trading accounts and they are also famous for providing both long and short term trading method. They make my trade easy and profitable.

  34. If I made millions or billions Dollars or Euros, I would only withdraw 4,000 – 5,000 a month. I doubt I can find a broker that can afford to pay me. Binaries are not meant to get traders rich, it is meant to earn some extra money and that's it?

  35. Account manager helped me make 40k in 3 weeks. Advising on which trades to place and in week 4 I lost it all including my investment.

  36. I didnt say i am right i Said this IS Not working for me. I m getting more und more sick. And since the others dont try to adjust to ne like I did I'll have to distance

  37. I've had 2 brokers which actually just gave me an inactivity fee without warning, this was during a period of several months I didn't trade and waited until I had a better trading plan. I lost 945 euros this way.

  38. Been watching ur vids but just watched this one. Can you share your thoughts on Fortrade broker pls. Also do u have any recommendations on which broker to pick with fix spreads.thx

  39. Best Broker to trade forex and commodity – ICMarkets

    http://www.icmarkets.com/?camp=17337

    Get the best spread and lower charges following my above IB link.

    It’s well regulated australia based broker. Easy deposit and withdrawal.

  40. i'm A scalper and when i started to get the hang of it and make money i decided to deposit a larger amount and started to make over 500 pounds daily then went on to make 4000 pounds within two days.. Then all of a sudden I noticed the movement of the trades were slowing down which they were not supposed to be according to what was on the charts. Also placing trades with similar account balances as mine with friend, their trades were constantly going into profit while mine looked as if it frozen or just was really slow. I knew what they were doing and also when they sped certain trade up. One customer service said he would speed it up to balance it..Crooked man

  41. Forex is a market creating a lot of professions to the traders indeed. This is a market run by different brokers. So first barrier is to select a trading broker to the traders. Trade12 is a reliable trading broker to the traders because their facilities include smart bridge technology, narrow trading spread and superior fast execution.

  42. To get the basic ideas of trading through an experienced broker expert assistance can help small-scale and retail traders. To get the best trading results, it is very important to work with the experienced broker who will allow the assistance of experts. I receive AAFX as one of the reliable trading brokers that supports their traders by offering them expert assistance that helps traders try new trading tricks and develop their trading skills.

  43. A BROKER CALLED PLUS 500 I WON 2 TIME AND WAS DOUBLING THE ACCOUNT AND THEY SENT ME AN E-MAIL THAT GOT TO UNDESIRED E-MAIL WHERE SO I READ IT DAYS AFTER WHERE THEY SAID THAT THEY CHANGED THE LEVERAGE FOR ME BECAUSE I WAS WINNING AND THEY WANTED ME TO WIIN….AND THAT IT WAS A PRIVILEGE THAT I WAS WIITH THEM AND THEY PUT ME TO SOME KIND OF WINNING CLUB …THE THING IS THAT THAT LEVERAGE KILLED ME IT BLOW THE ACCOUNT SO FAST….I PASSED FROM MORE THAN DOUBLING THE ACCOUNT TO LOOSING AND EVEN I SAID TO CHANGE THAT IT REALLY AFFECTED ME SO MUCH PSICOLOGICALY…MY WAY OF SEEING THE BROKER CHANGED NOW I TAKE MUCH MORE INTO ACCOUNT WHO IS ON THE OTHER SIDE OF THE BET……IT IS SO CHEAP OF A BROKER TO DO THIS KIND OF THINGS CHANGING YOUR ACCOUNT LEVERAGE WITHOUTH CONFIRMATION AND FOOL YOU WITH BONUS OR WHATEVER AND SAYING THAT YOU GO TO THE WINNING CLUB OF SOMETHING LIKE THAT….PLUS500 I GUESS WANTED ME OUT SOME WAY OR ANOTHER AND I WAS NEW IN THE GAME SO THE LEVERAGE EFFECT WAS SOMETHING I WAS NOT REALLY VERY CONCIOUS EITHER

  44. My question is this. While trading, the forex market is live to thousands of people to view on multiple websites. Suppose the broker is doing what your saying and faking the market move in the opposite direction Im taking, will that change reflect on all the markets or will it be just the broker market that may fake the move?

  45. With Mrs Rachel's  method i was able to rack in $12,000 in a week. There is more to the system than meets the eye, sometimes these videos don't really help much as they end up confusing you more. When i came across Mrs Rachel the confusion ended……I finally know how to trade and make proper gain. If you want to invest in knowledge and also want to be on the winning side that had the foresight to do the needed then Rachel Brooke is a professional in trading and has an excellent way of making you achieve the best. I love the consistency of her strategy. She is the only one i trust, for more assistance you can email her < [email protected]  > or Whatsapp : +14422433874 i know you will thank me later

  46. Hi, what broker would you advise to be good for scalping ?? iv been using trading212 for 3 years and seems to be very annoying, they are defiantly not honest.

  47. Hi thank you so much for your informations. Can I ask you how we can find that we are in the A or B group of the brocker ?

  48. What if, in theory you earn massive amounts of money using leverage (your bank as low as 1000 EUR), for instance 250,000 EUR over 1 week. Will broker pay you that money or there would be problems? Are there some occasions where brokers would not pay trader its money?

  49. you have not answer one comment here regarding broker choice? Why are you not telling some good broker options??

  50. 03:50 I think this guy either is unfamiliar with “Beat the forex dealer” or he is intentionally so naive 😉

  51. if I had a choice of giving you two thumbs up definitely I would but so far I'm more than happy to give you thumb up and thanks for your valuable info

  52. what i really like about this video is it goes straight to the point instead of regular bullshit that 99.99% of youtubers do..

  53. I have been trading for 11 1/2 years and I have seen some stuff with brokers. I do believe the "conspiracies" because I see these things played out in the market over and over. At the end of the day, I plan to make a video about a crazy stop hunt I saw in both the GBP/USD and the EUR/USD pairs this morning. Right now I am still watching to see who they are tricking, are they encouraging buy/selling, at this point, it's a mid-range show. After 11 years my advice is 'Wait for the proper trade set-up and cut a bad trade quickly!!!!! By the way, thanks for the video

  54. I disagree. You're partly right. Traders will lose money if they don't know what the hell they're doing. In that case they're better off investing in Cannabis. On the other side of the failure is due to dishonest Brokers for the reasons you just mentioned. I call them Scammers or Thieves, period! In that case, they should all be put down permanently like horse owners would with their horse when it's badly injured. That said, it would be hard to win when the Trader also has to deal with dishonest brokers as it is already hard to make money trading. That about sums it all up.

  55. great video.. Thank you..it means their's no point trading forex because if you always win and the broker always lose money, they will deny your withdrawal of profit and or just close your account without even allowing o withdraw the capital… I've seen a lot of complain of traders even to those brokers they called regulated…

  56. Hi Andrew

    I have a question.

    Where I can trade in real interbank Forex market?

    Which Forex broker is excellent for Indians?

    I have experienced price manipulation when I used high leverage trade.As soon as I buy high leverage gbpusd it goes 10 pips opposite and if sell vice versa.

    THE BAD BROKERS ARE LMFX,OCTAFX,TICKMILL,LQDFX

    I HAVE LOST ALMOST $200K

    THANKS
    BHAVIK GADA

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