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Forex How do spot forex brokers view profitable traders?

Discussion in 'Forex Forum' started by dasilva, Oct 28, 2015.

  1. dasilva

    dasilva Guest

    I vaguely recall stories from people who claimed that (in the past) brokers would freeze/close the accounts of
    traders that were consistently profitable. I'm not sure if these were spreadbetting (SB) brokers only or also spot forex brokers.

    We all know the adage that says 80%-90% of traders lose out in the long run.
    I don't know if that is good or bad for spot fx brokers as they make money on commission (and rollover?).
    However, I can see how it would be a problem for SB brokers as any wins will be paid from the SB bank
    and, 'heaven forefend' (as Simpsons:Monty Burns would say), that must be prevented at all costs!
    As such, I avoid spreadbetting as a rule.

    So, in regard to the top ten Spot Forex Brokers today, how (hypothetically) would they view a trader that consistently made thousands of dollars every week (with minimal losses)?

    Would the spot forex broker:

    (a) happily leave you alone, because they make commission on every trade, profitable or not.

    (b) leave you alone but possibly mirror your trades to mimic your success.

    (c) somehow change the rules/T&C (i.e. move the goal post) to cause more losses and hopefully more trades
    thus more comission.

    (d) freeze/close your account for some other dubious reason.

    I am interested to know if there is any reason (valid or not) why a forex broker might have an issue with a trader
    that is able to read the market extremely well and be consistently profitable.
    As far as I know, there should not be any adverse impact on the spot forex broker (like there is with a spreadbetting broker), but is this true in reality?

    Comments, stories and experiences welcome.

    Source.
     

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