Which broker gives the best trading tips and research you can make money from? In this article we will look at why you should never follow broker trading tips or accept help from them in terms of your trading.
Brokers DON'T Make Money for Clients
Traders who follow broker research, trading tips and advice are destined to lose money and the reason why is obvious – if brokers were good at trading Forex they wouldn't need clients, they could make great Forex profits for themselves but of course they can't make money trading.
I have worked in Forex brokers and spent 15 years trading and noticed that there were no brokers, who gave tips or advice to clients who ever made money for the traders they advised and if they traded themselves, they also lost money. I Find it amazing, anyone would take a tip or any advice from a broker in terms of how to trade Forex successfully.
Client Profits v Broker Income and a Conflict of Interest
Forex brokers rely on trading commissions to make money and there advice is normally, based around losing strategies such as day trading or scalping. They know 95% of traders will lose so – they may as well make as much in fees as they can before the trader losses. This applies to both offset brokers and market makers and in terms of market makers, not only do they make fees your money goes into their commission account when you lose!
Scalping and day trading strategies don't work and I was at a seminar conducted by one of the biggest brokers in the world which was focused around these losing trading strategies. The men in sharp suits were convincing but the logic of their argument is flawed – you cannot make money trading random volatility as a trader but if your a broker and convince a trader this is a great way to trade, then the brokers profits increase dramatically. Do I blame the brokers? Not really, were all adults and anyone who has a basic Forex education can see why day trading is a complete waste of time and effort.
Tips and Research Which is a Reflection of the Majority
In terms of broker research it will always reflect the news and the news is normally reflecting the majority's view so its obviously one not to follow with your trading strategy because most traders lose money. The research you see is normally telling you what has happened and the projections going forward are generally always wrong.
You may think a broker is being helpful by giving you free tips, free research or an account executive to help you make money but there not, they just know that losing traders want help and they give it to them – the trader losses and thinks he was unlucky, the broker though knows the real story.
A Trading Tip Related to Another for Trading Success
Many traders believe in the myth that brokers make money for clients and this is why they take their advice but they don't make money trading – they make money from fees and client losses. This is the brutal truth of Forex trading but most traders can't see it even when it should be pretty obvious to anyone after thinking about the above facts we have just looked at.
If you want to make money – don't take advice, don't day trade or scalp, don't follow the news and make sure you have your own trading strategy and execute your own Forex trading strategy without listening to brokers. The key to your success is to trade your own plan with confidence and discipline and learn, brokers should be used only to transact orders.
Forex brokers today offer you a window to the market which includes great trading platforms and low spreads and this is all you need them for – you don't need any trading tips or advice. If you have read the whole of this article, you will understand the best Forex broker trading tips for profit – don't exist avoid them or lose.