It was mentioned in the analysis that ” obviously the broker does not want you to make too much money out of them .” What is their problem since if they have ” hedged ” the trade then the more money the trader makes then the more they make on the spread.
What was meant is if a trader were scalping then brokers tend to not like that as its difficult to hedge that activity. Plus like I said, brokers are rarely fully hedged. Regarding them making more money on the spread the more money you make, well that’s not technically correct. If you trade at £10 per point and make 1 point, they make the spread, if you make 100 points, they still just make the spread, not share in your increased profit. Hope that helps. Charlie.
hi,
Dear charlie i watched you on bbc i was realy impressed, i heard a lot about brokers who steals our money.so please can you tell me what’s your broker …..
and how to avoid the bad of them
Best regards
Yacine
Do brokers take the other side of your trade?
Charlie answers a customer question on brokers plus gives analysis on the markets.
9 Comments
Do brokers take the other side of your trade?
It was mentioned in the analysis that ” obviously the broker does not want you to make too much money out of them .” What is their problem since if they have ” hedged ” the trade then the more money the trader makes then the more they make on the spread.
Hi Derek,
What was meant is if a trader were scalping then brokers tend to not like that as its difficult to hedge that activity. Plus like I said, brokers are rarely fully hedged. Regarding them making more money on the spread the more money you make, well that’s not technically correct. If you trade at £10 per point and make 1 point, they make the spread, if you make 100 points, they still just make the spread, not share in your increased profit. Hope that helps. Charlie.
Many thanks for your helpful comments Charlie
Hi charlie thanks for your info who is a good trusted broker for forex
Hi Danny, Kym is just setting up a good deal for our customers with Go Markets. Details will be released in the next week or so…
Charlie
hi,
Dear charlie i watched you on bbc i was realy impressed, i heard a lot about brokers who steals our money.so please can you tell me what’s your broker …..
and how to avoid the bad of them
Best regards
Yacine
Hi. Look at dukascopy or Saxobank as good brokers. Charlie
How can I trade under Charlie Burton’s training?
Just either get our day trading package or if you would prefer to swing, get the DST package…