The concept of “all black platforms are betting, all betting are black platforms” has become quite popular, so many partners are shying away from the word “betting”, and even some traders will purposely avoid dealing with platforms that have “market making qualifications”.
Today, I also take the opportunity to discuss this with you.
What are the chances of you encountering a pair of bets?
The first question: What is a bet? fake brokers？
Valuation Adjustment Mechanism（VAM），In the betting agreement, the two sides can choose “more refund less compensation”, “more not refund less compensation”, “more refund less compensation” these three modes of operation, in general, and uncertainty, but still relatively fair.
You would like the platform to bet against you, feelings people are not happy. In fact, most traders understand the “betting board” is actually more similar to the nature of gambling zero-sum game, the way to play is: “you die, I live”, “you lose, I gain”, the broker and the trader There is always a loss and a gain.
And then tell you the truth, the real rules of the game of the foreign exchange circle is far from the above situation so beautiful and fair. When you really encounter the “betting board”, you are likely to participate in a “negative sum game”.
First of all, from the point of view of order execution, the betting board on the surface to promote the STP/ECN model, but in fact does not throw the user’s orders to the market but directly in the internal hedge. In this way, the customer’s loss is the platform’s profit.
You may be wondering if the betting board will only hedge the losing orders and throw the profitable ones to the market for processing, in which case I still have a chance to make money as long as I am technically sound.
Well, you’re thinking too much. In accordance with the statistics of previous years, there are more than 70 to 95% of retail investors in the loss situation all year round, if the data is true, then the platform does not even need to be screened, directly and all customers betting can also have a high probability of winning big.
And the betting disk is generally black platform, black platform is the purpose of the circle of money to run, where to spend money to you to dock what liquidity providers. This is the case, even if your single could have been profitable, the platform can also be slippage, forced to delete a single and other methods to turn everything into a bubble.
Moreover, you forget that whether you make or lose, you need to give the platform spreads, fees and overnight fees?
So, as long as you are dealing with a betting board, you don’t lose money is worth patting Bodhisattva thank God.
So, as an ordinary trader, what are the chances of you encountering a betting board?
In these few words, let’s sum it up and see if you agree.
Long-term unregulated platform 50% is through the pair of bets to make money, the other 50% is engaged in pulling the head project, Ponzi scheme.
The platform regulated by NFA, FCA, ASIC, Finma, FSA (Japan) and other strictly regulated institutions has a smaller probability of betting, and the platform with a large family and major profit does not depend on retail has a smaller probability of betting.
As for the offshore regulation platform will not bet. The strict selection of the gentleman believes that this issue can be said to be one of the most metaphysical issues of the transaction. You say it won’t, who believes it? Which cats don’t like fishy, there is no regulation, it is difficult to guarantee that there is someone who can’t keep the principle. You say it will, where is the evidence?
How can I identify a pair of bets?
After understanding the dangers of pair of gambling pads, the final question is how to identify and how to choose.
First of all, as a large category of black platforms, the pair of gambling discs often have many similar characteristics.
- There are problems with regulatory credentials: no regulation, set of licenses to operate, and over-restricted operations. In addition, these platforms are often not established for a long time.
- serious slippage: regular slippage, and profit orders are more likely to slip than loss orders. In addition to the U.S. market and other trading congestion time, other normal time period also high frequency slippage.
- Abnormal quotes: The broker’s quotes repeatedly show different movements from those of other brokers. In addition to the early morning hours and other periods of tight liquidity, spreads are also prone to abnormal widening during other normal hours.
- impede the withdrawal: this is the most obvious sign of a black platform, the deposit can be, the withdrawal will need to provide all kinds of proof, pay the margin in various names.
- rampant shouting orders: in addition to relying on the user to take the initiative to place orders, these betting platforms often also have a group of professional shouting teachers to guide users to place orders, and even the customer manipulation. Of course, after the user loses all the money, the platform will often put all the blame on the single shouting person or user, but they are back.
- the use of crack MT4: trading software is the platform’s facade, the general formal platform will have their own custom version of MT4, some of the large platform also launched a self-research platform. But the genuine MT4 is expensive, the black platform will often directly use the cracked version of MT4.
These 6 points above can basically help you identify most of the black platforms and betting platforms.
The remaining is just a selection of questions: market maker, pure ECN platform, STP platform which model is more suitable for you? What is the essential difference between market making and betting?
To put it in a more general way, when faced with multiple choices from brokers, which account model is more suitable for you?
This question is actually one of the first questions that every newbie encounters when they start trading, and it is also a question that many veterans don’t take the time to figure out even after years of trading. Different accounts mean different execution logic and different fee models, which can be said to affect our trading from the root.