Will retail forex trading ever be regulated, given the international nature of the business? Even if it is, how will a trader in Britain enforce the legislation if the broker is regulated by US law? It will be tedious and expensive.
Another issue is the income that brokers receive from the spread. They should get thousands of pips per month and the higher the clients' balances get, the higher the value of the pips and the higher their income. Why should they resort to dirty tricks? It should'nt be neccesary. Their success should go hand in hand with their clients' success and should not depend on their clients' failure.
They would resort to tricks like this when they don't put the orders into the market. If they do not do that and bet against you instead, that will be when they start hunting stops. Imagine what it will do to a broker's bank balance if a few trades go say $30 000 into profit and the trades are not in the market. If I was in their position, I would do the same, LOL.
What is the cost of the system that places the orders directly into the market? Is that cost not prohibitive for some brokers and they choose not to invest in it and resort to dirty tricks to stay in business. I am beginning to worry about MT4 brokers. The platform is great, but allows for plug ins that assist them to screw the clients.
Does this make any sense?
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