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Choosing the Right Broker

JuanJoel
Apr 17 2019 at 11:16
5 posts
Well bonus giving brokers often lock your funds until you activate their CPA, which means making a deposit and placing 1-3 trades... It's the same concept as casinos and Matched betting. Just need to make sure that the broker is regulated, or shows some sort of proof of legitimacy...

Stefan Petkov (stefanpetkov)
Apr 22 2019 at 05:12
2 posts
Treeny posted:
Agree that bonus giving brokers should be avoided. They often lock in your real funds and make it impossible to withdraw any money from them


Yep, that is correct. The very simple reason is that brokers giving bonuses in 99% are market makers. Why market makers - because those bonus is fictive and even in case of lose, the broker will not loose any own money, but the trader will lose his account, which will be profit for the broker.
 
On the other side are the STP brokers. Those brokers will not offer you bonus over deposit, because all orders are sending to different LPs, out of the STP brokers ecosystem, which means that those bonus amounts will stay as a guarantee of open position and the broker will bear the risk of lose. That is the reason the real STP brokers acting on agency model to be the real intermediaries and they will not give bonus over deposit, but in fact the bonuses they are sharing to traders are: low spreads, much better execution, high protection and safety of traders funds, solid regulations and etc. :)

pmichael
Apr 23 2019 at 12:37
10 posts
JuanJoel posted:
Well bonus giving brokers often lock your funds until you activate their CPA, which means making a deposit and placing 1-3 trades... It's the same concept as casinos and Matched betting. Just need to make sure that the broker is regulated, or shows some sort of proof of legitimacy...

Whatever you said might be true but thank god i never faced such problem. my current broker was offering 100% deposit bonus, i used that successfully and made decent profit. Also every time i got my withdrawals on time without any nonsense.

vontogr (togr)
Apr 23 2019 at 13:34
4862 posts
So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.

CRPA9
Apr 25 2019 at 05:23
21 posts
AniLorak
Apr 25 2019 at 08:29
920 posts
togr posted:
So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.


When a broker offering unrealistic bonus, then it’s easy to judge their real trading activities; traders should avoid this type of market maker.

vontogr (togr)
Apr 25 2019 at 08:39
4862 posts
CRPA9 posted:
YES YOU NEED TO DYOR


Always DYOR

Adribaasmet
Apr 28 2019 at 11:35
947 posts
togr posted:
CRPA9 posted:
YES YOU NEED TO DYOR


Always DYOR


Hi mate, what is Dyor? Is this any company name or anything else?

AmDiab
Apr 30 2019 at 11:18
718 posts
togr posted:
So called bonus is dangerous thing.
It leads you to incresing your trade size as you believe so called bonus should work as collaterall for trading.
It does not. At the moment when you need it the most, so at the moment your own funds does not cover loss of open position, at this moment the bonus is removed and you are loosing the account.
Needless to say with proper money mgmt you should never get into such situation.


It’s true; I see good Forex brokers don’t offering any bonus; mainly market maker brokers are active this type of marketing based feature.

EMA40
Apr 30 2019 at 11:25
2 posts
Adribaasmet posted:
togr posted:
CRPA9 posted:
YES YOU NEED TO DYOR


Always DYOR


Hi mate, what is Dyor? Is this any company name or anything else?


'Do Your Own Research' - I guess.

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