What is more interesting for Brokers! win/win or lose/win?

[Dallas]

There are two broker's working styles:

Win-Win

You make a deposit and trade with a lager amount of money. You as a trader have a profitable strategy and make many trades per week.

Broker executes your trades and takes his interest.

More trades - more profit - more interest for the broker.

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Lose-Win

You have a micro account and trade with a small amount of money. Broker is a market maker for you. You make a profit - broker pays you from his pocket. You lose - he gains.

In this case broker very interesting in you to have a non-profitable system.

More accounts - more loses - more income for the broker.


What type of brokers made more money?

[dannylohra]

Hey Dallas

I heard and read about this kind of system, scary!
They rip you off if you're small and don't know the market well.

This is one of the reasons I slowed down trading manually and my positions. There's a way to trade without this broker interest. I use Buru which trades auto and the EA earns only if I trade, the more I trade the more the EA earns, even if I win a lot, my EA's return stays the same. So no conflict of interests!

I'm happy so far and look forward to more returns (it's summer soon )

[Tradinger]

Ok, I understand the argument with the market maker making a profit when you lose. BUT how could a forex broker manipulate it? This would be more interesting I think.

[Derrick]

I would go for win-win strategy . I know this is not easy to adopted this strategy and there is lot of hard work and a stroke of luck is needed to be successful. In addition to this you need to have large amount finance to keep up the pace of the market.