Banned?

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tippy
70
tippy  
I was just wondering - in the happy event that someone is a very profitable trader, would a broker ever ban someone?  That's what bookmakers would do...
honest_knave
Moderator
2302
honest_knave  
tippy:
I was just wondering - in the happy event that someone is a very profitable trader, would a broker ever ban someone?  That's what bookmakers would do...

Depends entirely on the broker, and how the trader is trading. You'll read stories about it.

The smart broker would use that information to their own advantage rather than ban the trader. Or just be happy to collect their commissions.

Eleni Anna Branou
Moderator
6670
Eleni Anna Branou  
I agree with honest_knave, brokers do take advantage of the knwoledge and strategies used by successfull traders (as I have heard).
tippy
70
tippy  
Do you think using an EA makes a difference?
Marco vd Heijden
Moderator
8176
Marco vd Heijden  

No it depends on the broker as honest_knave pointed out above.

If you or your EA is winning bigtime and you have a broker that keeps the orders inside and plays the other half of your trades, then they will lose a lot of money.

And they do not want that.

Jack Thomas
1635
Jack Thomas  
No honest brokerage is going to complain about you making money. They make money on your winning trades too with commission and spread. The more you make, the more they make. It's in their benefit to have you trading profitably.
tippy
70
tippy  
Marco vd Heijden:

No it depends on the broker as honest_knave pointed out above.

If you or your EA is winning bigtime and you have a broker that keeps the orders inside and plays the other half of your trades, then they will lose a lot of money.

And they do not want that.

I was reading something about an A and a B list.  The B list is where the broker keeps the orders inside (losing traders) and A list gives it out top the market.  So, I assume they would keep you for commission and spreads but not keep the trades on the inside.  Sound reasonable?
honest_knave
Moderator
2302
honest_knave  
tippy:
I was reading something about an A and a B list.  The B list is where the broker keeps the orders inside (losing traders) and A list gives it out top the market.  So, I assume they would keep you for commission and spreads but not keep the trades on the inside.  Sound reasonable?

There are so many different models used by brokers. 'A' book, 'B' book, hybrids etc. It really does depend on the broker.

But TBH, you probably don't want to use a broker that would ban a profitable trader anyway! 

mntiwana
4212
mntiwana  
honest_knave:

There are so many different models used by brokers. 'A' book, 'B' book, hybrids etc. It really does depend on the broker.

But TBH, you probably don't want to use a broker that would ban a profitable trader anyway! 

 They play different tricks to earn more than can,one for example,they count on number of trades (volume wise) if they have 30 sell and 70 buy,they keep hold total 30 sell and 30 from buy with them and pass 40 to market,and take their partial share of commission from market,and take full spread/commission from 60 they hold with them,these 60 buy/sell killing each other no loss to broker.
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