I just read the fine print on the disclosure statements of a currency trading account I just opened. This is what it said. I deleted the firm name, but it is a highly respected broker. I replaced the firm name with (BROKER). Absolutely unbelievable. They don't purchase or sell when you make an order. They just fade you and it's a completely paper gain or loss until they settle up with you. If you prove to be a winner over time, I'm sure they get off of your trades immediately when you enter them. But until then, it's all on air. It would be like friends betting with me through my offshore accounts, but me never actually putting the bets in. They would think I do, but in reality, I would just fade them and keep the money myself when they eventually lose.
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. (BROKER) IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, (BROKER'S) INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS (BROKER) ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES (BROKER) OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.
IF (BROKER) ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT (BROKER) MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE (BROKER) ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM (BROKER) OR ANY OF ITS SOLICITORS
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. (BROKER) IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, (BROKER'S) INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS (BROKER) ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES (BROKER) OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.
IF (BROKER) ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT (BROKER) MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE (BROKER) ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM (BROKER) OR ANY OF ITS SOLICITORS
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