How brokers may make money out of a contest -
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thread: How brokers may make money out of a contest

  1. #21
    Hello,

    I believe I will share some result and you can about guess how many men and women blow up the account.

    In Jan, I was -1.7% and rank 57.
    This month I am 5.8% and rank 101 at their last update (past Fri).

    Therefore gt;75 percent peolple lost cash in Jan because competition and the other 300 people make less than 5 percent this month.

    Hope this helps.

  2. #22
    Member
    33
    Well, Well, Well!

    After 2 weeks of contest, the amount of participants has declined from 433 to 387 registered, 46 traders prefering to shoot off their names from the list after having their accounts totally blown.

    The previous 10 recorded have their accounts dismissed, and likely even more of them not listed, yet.

    The first ten do fine, but I would not be shocked when I read a few of these titles in the downward list later on this month...


  3. #23
    I thought this was obvious. Oh well...

  4. #24
    I had been looking about the Feb. result for the competition, and I discovered that the participants have doubled this month!

    January 2008: 237
    Februry 2008: 433

    The last 10 have practically blown their account...

    I figure that over 350 will finish with a negative balance...

    look like the base ten will be on the point of blowing off there account.

  5. #25
    Member
    33
    I was looking on the Feb. outcome for the contest, and I discovered that the participants have dropped this month!

    January 2008: 237
    Februry 2008: 433

    The last 10 have already practically blown their account...

    I figure that over 350 will end with a negative balance...


  6. #26
    Member
    33
    The broker is InterbankFX out of what I know.
    Thanks Yuhu.

    Yes this is taken out of InterbankFX site.
    I'm not saying they're trading against you as most brokers do, even if they're known to do so. They knewly reduced the minimum entrance to 250$ and they're fishing much more customers, beginner traders to most.

    I am aware that it's a broker conversation place, but I was not intending discussing a specific broker, but none of many ways brokers can make more cash, and 'free publicity' as Semar nicely said.

    So this applies to broker companies generally.

  7. #27
    Member
    33
    The thing is, doing contrary to losing trade doesn't nesessarily make it a winning transaction particularly in this case.
    When you lose in a transaction, somebody is winning on the opposing side.

    Try doing both market and buy (hedging your place) in the exact same level for GJ for exemple, with a 9 pip spread.

    If one of your transaction shed, another will obligatory win, without the spread.

    But we are speaking about a broker. The spread is owned by the broker, at least the biggest aspect of it. Where here you have a loss of -9-9 = -18 pips, he'll have greater than 1 or two pips loss in doing the same thing.

    So once you enter a GJ place, you directly are at -9 pips, he's directly in triumph of 7 pips when he chooses your reverse trade.

    Should you win 5 pips and you shut your position, he'll still win two pips from his disperse.

    Should you lose 5 pips and shut your position, you're losing -5 -9 (Spread) = -14 pips and he's winning the disperse you already paid along with your loss 9 5 = 14 -2 = 12 pips by accepting another side of your trade.

    Or more than 90% of traders will shed from their equilibrium and finally lose all their equilibrium in a contest, and the less than 10% winners won't make so much wins as you may see in the announcement. Hence that the broker will probably be winning when he chooses another side of you trade, and certainly will be winning probably more in a contest situation.

  8. #28
    Junior Member Ana_1999's Avatar
    22
    You should also incorporate the money they'd otherwise spend on picture building.
    Add some 20k

  9. #29
    Junior Member gery115's Avatar
    21
    Nice post.

    Thank you. Which broker is this? Do you mind sharing?
    The broker is InterbankFX from what I know.

  10. #30
    Junior Member oxtaysquiroz's Avatar
    9
    Wonderful post.

    Thank you. Which broker is that? Do you mind sharing?

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