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Ok let me start off with saying that I do have very little experience ... I fully research something I intend to do before vesting into it...
Great!
I have a few questions that I feel I need answered, mostly derived from this thread and these forums
I will try and write what I know
A broker will not allow "scalping" being as I have read it 'making multiple small trades' or as I feel I should read it 'making thousands of $1 trades daily'
Do I have this in any kind of proper context?
IBFX has a specific policy of a trade duration of 90 seconds. now it is not real strict but if you had an EA rapid firing trades that lasted under 90 seconds your account could be flagged from some sort of security software that IBFX may have in place and you may get a phone call asking you to stop clogging their server and making it hard for them to pass off your trade to a liquidity providor
If using an EA to make your trades a broker could simply cut off use of said EA in order to secure their money as the user is less important to them... although by these means there is nothing that they could do if that person was trading manually
A dealer has the right to do business with who they please and can cut off your service at THEIR discretion. Trading is not a privledge or a right. The dealer/marketmaker is in business to make money and if you are a client that he cannot make money from, well he could weed out the dead wood so to speak...You relationship is that of commercial commerce
MT4 is a bad platform? Although there are a lot of useful options and seemingly beneficial capabilities, in the end it is up to the broker and by such they can change what kind of outcomes you can have?
Yes in a nutshell, but it seems to be sound and technically capable. It's the Russian Company behind it that seems to facilitate Larceny for dealers to commit.
Are there other platforms that can be used that you might say were more secure or less likely to cut into your profits? By this would they still allow you to make those trades that the other brokers using MT4 have placed their foot in front of?
Yes, but the pool of freelance coders may be limited and they may be more expensive.
Where does the broker make his money from? I was under the impression that the broker had made their money from interest as well as following the trades that the users had set forth...
Well in a perfect world the dealer could make his money from spread and interest.
There will be more things I am sure but for right now that’s all I have come up with
I will try and understand your discoveries and share what I know.
Last edited by ElectricSavant; 03-19-2008 at 08:17 PM.
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