I thought I’d share a little with you today about brokers. Something I learned the hard way, but I hope this will help you learn a little faster, a little sooner, so that you don’t have to worry so much about learning from a school of hard knocks like I did. A broker quite frankly, is not your friend. Let me just say it up front, they are not your friends. I thought they were when I began Forex Trading, but I now know they’re not. Don’t make the same mistakes I did. Listen to these few little tips you’ll want to watch out for.

First of all, there are several different levels of trading privileges depending on what size of account you have, and depending on how much experience you have. A broker can tell when he talks to you on the phone whether you’re brand new, if it’s your first account, or whether you’ve been at this for a while and have been around the block a few times. When you’re talking with a broker you must always remember that no matter how nice they sound, no matter what promises they make, no matter how much they incentivize to open up an account with them always understand if they are a retail broker or a market maker, they are not your friends.

Retail brokers, market makers are going to be trading on the opposite side of your trade. Do you know that? Most of the people I talk to at my ForexCoachingPros.com site don’t understand that basic, simple, little fact about their broker. Most of them are shocked and surprised to find out that when they take a buy position, their broker is taking the sale position on the other side. When the broker takes the sale position he instantly enters into a conflict of interest. That broker is no longer interested in making spread fees from the trades you enter into the market. Spread fees are miniscule. They are nothing compared to what the broker is going to make when you lose your account.

Now, you think, does the broker really want me to lose my account? How are they going to make money that way? How are they going to keep making spread fees that way? Well you must understand market makers, which are the retail brokers, the vast majority of brokers, that are available to the small, little guy out there who’s trading, the new guy. Theses people know the odds! They know that the Forex market which I am principally trading is a very high-risk market. In fact, they know that the vast majority of new traders, if not all of them when they begin, are going to lose their account within 45 to 90 days or sometimes less. You need to know thy play the odds.

That broker’s no different than a bookie. He’s taking your bets because he’s betting against you that you’re going to lose. He’s playing the odds. And when you lose that account he would rather you lose it to him than to someone out there in cyberspace. And then he doesn’t make any spread fees anyways because your account is empty. So why should he be incentivized to make a spread fee if he can make your entire account? And why not offer you a three hundred dollar bonus to set up a twenty five hundred dollar account when he knows he’s going to make the bonus back anyway.

Just remember, the retail market maker or that retail broker is not your friend. And you must learn how to compensate for that issue if you’re going to become a more successful trader.