I used to work as a forex trader before so I had to learn few things about brokers to chose the best for me. I learned that there are actually two types or more of brokers in which both work differently. The first type called No Dealing Desk which is the safest and better option in my opinion even with lowest fees just bigger minimum deposit because they deal directly with banks and offer the same market rates globally.
While the second type is called Dealing Desk or market maker brokers, These brokers have their own platform and their prices are not directly related to market rates. Sometimes in my experience with them they can be manipulative and intentionally cause traders to lose the big trades by moving the price significantly until the trader account blow up, because they profit when traders lose opposite of the first type where they earn a percentage of every trade you open as fees or what they call spread and regardless of which direction your trade goes.
I also believe that brokers can be quite risky and many of them especially the second type (Dealing Desk), can be pure scam and forbid you when you want to withdraw your money. There’s more topics and articles about exposing brokers than casinos so you decide which one is more manipulative.
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hereI appreciate your detailed insight, and it resonates with my own experiences. With 15 years of working on the Forex dealing floor of major banks worldwide, I have navigated the nuances of this industry intimately. You accurately differentiated between No Dealing Desk and Dealing Desk brokers, and your insights into their operations are spot on.
But I want to shift the focus to a specific area often overlooked, known colloquially as "Forex Kitchen." These entities are not the big whales with banking or broker dealer licenses. They operate in shadows, offering staggering leverage of 5-50x to inexperienced traders. This setup is arguably more perilous than casinos, as it not only lures the unaware into a risky trading environment but also leaves them stranded with almost inevitable losses.
You're right about the manipulative tactics of Dealing Desk brokers. In the "Forex Kitchen," the A & B book model is alarmingly simple. The A book contains clients who, with little experience and high leverage, are expected to lose. Their trades are not covered; the broker just waits for the inevitable loss. The B book, for larger trades, is routed through international liquidity providers to avoid the risk on the broker's end. This segregation and manipulative handling underscore the significance of understanding and exposing these operations for the trading community's collective security and success.
