Forex brokers truth (Part 1). Introduction. Forex brokers’ tricks: Innocent ways to outsmart a client.

Every few weeks a new Forex broker joins the market offering online currency trading.
Some brokers do business in straight forward, honest way, while others try to “invent” additional rules to maximize company gains.

Think this way, a broker doesn’t come into the market with the self purpose to help you earn profits in Forex. Forex brokers, first of all, come to make money for themselves.

I won’t dive into the details on how brokers make money using common industry standards. I’m going to talk about the OTHER rules, invented by Forex brokers. These “other” rules are also fair, nothing illegal, with the exception that “other rules” make Forex brokers slightly more richer.
Illegal brokerage practice remains illegal and is prosecuted by the law worldwide. Again, we are talking about legal methods of making extra profits (often than not, at clients’ cost), those methods that not every trader is able to spot out without the experience.

These other rules are about:

- spread policies;
- position time limits;
- platform time zones;
- negative interest rollovers;
- affiliates commissions;
- and other..

This topic will consist of several separate publications, where we’ll talk about each of these rules in details.

My friends, let’s clarify the last important thing, before we move on:

I’m not trying to make you suspicious about brokers and their practice. I simply want you to be smart and aware of practices that exist out there whether we wish for it or not.
I’m not trying to teach you to hate brokers or stop respecting them; after all, it is you in the end, who will decide about signing a contract with them and accepting their rules. Some brokers choose not to overload clients with tons of details about trading; it is your duty to ask a broker about the rules and terms before you sign a contract and begin trading.