In the intriguing financial universe, constant rumors circulate about brokers manipulating trades and capital loss attributed to questionable practices. This article seeks to shed light on these claims, analyzing the truth, resulting decisions, and the process of establishing financial companies.
Trading Manipulation: Between Truth and Fiction.
The manipulation of trades by some brokers is a reality that cannot be ignored. From removing earned swaps to manipulations in entry prices, slippage, and changes in account conditions, professional traders take measures such as verifying their daily statements to ensure the integrity of their positions. Manipulation tends to be more common in fundings exceeding 5,000 USD, becoming a practice to be mindful of for traders wishing to operate with significant volumes.
Capital Managers: Between Reality and Fiction.
Many capital managers attribute losses to broker manipulation, but this claim is not always accurate. Burning an account by more than 50% of capital requires consistently unfavorable decisions or lack of management (martingale or day trading without SL). Blaming brokers may be a strategy to evade personal responsibility.
Profit Retention: A Growing Practice.
Profit retention is an increasing practice, even in reputable brokers with extensive regulations. Excuses such as the use of invalid IPs, additional KYC processes, or prohibited technologies are used to retain profits. The struggle to recover these profits can be a lengthy process, often indicating that the broker acted as a counterparty (Book B).
Strategies for Dealing with Profit Retention.
I recommend claiming the initial capital and then considering legal actions to recover profits. Trading while regularly withdrawing the deposited capital can also be an effective strategy to ensure profitability.
Expanding the Management Spectrum: MAM, PAM, and Copy.
Capital managers must understand the differences between MAM, PAM, and Copy to advance their financial knowledge. Negotiating profit-sharing rates with brokers is essential, as this influences operational costs. PAMM emerges as an attractive option for managing third-party capital without the legal burden associated with investment funds. Considerations for Setting Up a Financial Company or Broker. For those aspiring to establish their own financial company or broker, a deep understanding of legal and financial matters is suggested. Payment agreements with brokers and transparent negotiation of fees may be key to a mutually beneficial relationship.
