Topic: Casino vs. Stoc,Forex&Crypto Broker: Who's Really Playing You in the Money Game - page 13. (Read 3065 times)

Business is business actually, there is no need to get jealous, like I will always say, if I find a business to be very profitable, and that I can make profit with zero chances of a loss, I definitely will go into the business if I have the money and connection to set and start up the business, we live in a free world after all, with enough money and the right connection, anybody and get the license to run what ever kind of business they so wish or desire to run.

Brokers might be winning with every single trade we carry out, and this they do with zero risk of loses, but rest assured that, they also have their challenges to battle with, there is no business in this could without any form of challenge, their challenges might not be in term of making profit, but in other aspects like government, regulations, paying taxes and so on.

From all this, what we must take as a lesson is that in trading, based on what trading and the market are, things are calculated and must be done this way and not left to chance, which is very different from the management that It is done in a casino, I have also seen that many brokers that are being banned, there is a large blacklist of brokers because they have a very bad reputation, they are not recommended, for that reason we are always looking for the best broker with the best of all the opinions on the part of their traders, also that some brokers make certain operations lose on purpose, and that is something that is not ethical, however, I say it very sadly because I have been in brokers like that, and it is angry that they do lose yourself through a stop loss and once they touch it they follow the normal course of the chart, as well as the broker is quite reserved regarding the right of admission to certain countries, which seems quite stupid to me, but there are brokers like that, The same thing has happened to me in forex.

With respect to cryptobrokers, I have not had much experience, because the mere fact that the KYC is very demanding, is something that bothers me, and that I do not like to go on, because in part they require many documents that are difficult to keep in mind. oncasinos and there are also others that do not accept a type of identification, it happened to me that I could not register even with my driver's license, because at that time I lost my passport, and they did not accept my registration, so it is just the case that sometimes they can They may seem very stupid but some traders like me do not recommend it to their friends, and I have many friends who trade and I tell you, do not get involved there because of the amount of things they demand, that they do, and possibly do not process a withdrawal, As happened to me recently, I have not been able to make a withdrawal of money, they do not accept a withdrawal to another account that is not mine, due to a problem that I currently have with one of those accounts.

Yeah!  I think that indeed brokers are, to a very large extent, psychologists who are obviously aimed at one single result in the form of receiving money from the client. 
Usually a broker is presented to a person who is not experienced in matters of broker activity as such a very knowledgeable person who will not commit any stupid or rash actions with the client’s money and will definitely increase the client’s capital.  On the other hand, the broker looks at the client just like a psychologist, and the main question here is how such a client will behave in case of failure.  And the second question is what percentage of the profit, if successful, will this client agree to.  These assessments obviously then go into deciding how the broker should communicate with such a person.  And here the broker can use various manipulative tactics.  He can imagine himself from a dashing cowboy who succeeds in everything, to a thoughttful and meticulous accountant in glasses who will accurately calculate everything. 

Of course, I cannot call these nuances of the broker’s behavior deception, or even less call them fraud, but they are definitely a performance played out in front of the client for one single and understandable purpose.

Given your detailed insight, it prompts the question: Are brokers and casinos both just playing on human psychology, albeit in different contexts, to ensure their own profits? Where does the line between legitimate business strategy and manipulation begin to blur?

Well, what I think about this is that when one refers to brokers as stockbrokers, it is another thing, they are interested in you as a client spending money and that they have spent money, what does that mean? In the case of brokers, they are interested in having enough money deposited in them and letting the card go and see how they use it, then there is the stockbroker who tells or calls the person to tell them that there is an opportunity in the market. , which is a stock that is low, but that in a short time can go up quite a bit, even up to x10, but in reality the broker does not know it, because what he wants is to sell and collect his commission , that is what this is about There is no other way out but that, basically people are sometimes fooled, especially those who have a lot of money, who talk to them about actions or things that they have to do three times as much as they have and that turns out to be a lot of lies.

And that is something that is good for stockbrokers, for them it is excellent that they can do something like that, because they know very well that when it comes to how to know if they can generate better results, it is by selling in some way, and that is what they They do, now with the casinos it is something else, each casino has its different point of view, they win because the player plays, bets, and if he loses they win, if the gambler wins, they lose , but based on the advantage of the house Well, they have many options to be able to win, because their basic business is winning due to the number of players who will enter and spend, that's what this is about, and the more customers, the better because there is more opportunity for them to win, they are based only on the advantage from the house and that is enough to guarantee the Business, of course in the casinos there is everything, there are players who are small, medium, large, and well they basically stick to doing things as they believe it is in vain to multiply their identity, Something like that for me is what brokers do, but in a different context.

Absolutely, your points are valid and it's true that at the end of the day, every individual has the power of choice. However, isn't it about transparency and understanding the playing field? With casinos, the odds are clear, the risks apparent. But when it comes to brokers, are most people fully aware? You mention the intellectual person, but what about the vast majority who aren't in the know? Are they truly aware of the subtle nudges brokers employ to encourage more trading? Or are they unknowingly being steered into making decisions they might not have otherwise? Isn't it essential for everyone, regardless of their level of understanding, to have a clear picture?

Casinos like brokers have their way of making money as the business progresses, obviously the bookmakers win when they have a good streak in which they manage to sell the shares that they are assigned, it is normal, it is their way of life. sell, the casinos are a company above all, they will sell but in another way, everyone knows the advantage of the casinos, they have their own options to do things well, and that they are acceptable, so that is why this industry of gambling and the exchanges, of the brokers, each one earns whatever, but who makes more money than the other, the truth is I wouldn't know? It could be that someone dedicates themselves to studying the statistics to determine who can earn more or less, but it is something that It doesn't make any sense, I have seen casinos that have the options so you can do a quick tab, especially the casinos that are decentralized, and that have the most moving ones in the current market.

There are many ways to present things well, or present them badly, we are the ones who decide how to spend our money, how to invest it, how to use it, if we want to invest in the stock market, in some actions that the brokers give us, well why not? It can be done, there is a lot at stake there, but we have to take into consideration that when we are in a casino the ones who decide are us and no one else, we are the ones who hear the risk, based on our money, if we want multi Spending our money, we are the ones who take the risk of betting too much or too little, depending on what is appropriate for the person, a person can spend a lot of money in a casino, and still be happy, a person spends a lot in a broker and he may not be happy with what he does, because that's not his thing, so this is a set of assumptions that can be made to be Able to determine if what we are doing is right or wrong, it's all a decision.

I totally get where you're coming from. Yes, businesses should earn for their services. But here's the heartache: When you enter a casino, you know you're rolling the dice, taking a chance. It's the thrill, the risk, and we embrace it knowingly. But when you approach a forex broker, you're thinking strategy, investment, foresight. It's not a game; it's your hard-earned money. So when hidden tactics push you towards gambling instead of trading, it feels like a betrayal. It's not about fees; it's about trust. It's about stepping into a space expecting clarity and being met with shadows.

Well, there is never a time we can or should compare an business owner to the customer, for the customer will always be at the mercy of the business owner..

What exactly am I saying? A Forex broker, or a gambling casino, both are business owned by someone of some group of persons, what is their mission?, to sell what we want to us and by so doing, make profit for themselves, and this is understandable because, no body in their right sense ever starts a business wit the intention of losing, so the same way traders are mostly at the mercy of the brokers, so also are gamblers at the mercy of the casino, same way every customer are at the mercy of every business they patronize, its hard to believe but it's the truth.

That's exactly the point, we know that they are earning money from us, but we are the ones who are using the services they are providing, so we can't really say that they are exploiting us or using us for their own benefit because that's not entirely true. If you are a crypto day trader and you use a centralized exchange for your trades, you are getting to use the tools and services provided by them and that is what they are charging you for.

Similarly, when you are gambling on a platform, you are basically getting the opportunity to gamble and they are the ones providing you the opportunity, so if they charge you a percentage of your wins just as a fee for their services, there is nothing wrong in that and they truly deserve that for what they are doing for you.

So, both brokers and gambling houses are only getting what they are working for just like any other business in the world.

I see casinos as being really open to making much more funds than them brokers... That could be untrue but, that's exactly the way I see it.
Brokers are bearing the charges to whatever sever they're connected to - whatever they make is determined by every trader's spread ; lot sizes and every other commission including the disallowing of minimal cash capital below 5 dollars.
The percentage of peeps that indulge in gambling isn't compatible to the little that trade currency pairs or crypto...

Sandra 🧑‍🦰

I am glad to have positively contributed

I and I am sure many others would like to learn and read more about this shadow industry of brokering. I have an idea of it, but as you go into more detail I don't believe that my knowledge of the topic is anywhere near the level of which yours sits. Do you have any resources or links on hand for further reading and education? I am sure that if brokers are any worse than casinos, they will do a good job at covering up any available information exposing their business or downsides. I hope you have some further reading for us anyway

I 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.

Thank you for your thoughtful insights. Your perspective is spot-on, and it helps to steer this conversation towards its essence. The pivotal concern should indeed revolve around humanity and well-being. Casinos, despite their issues, are straightforward about their purpose as a source of entertainment, albeit with potential pitfalls. On the other hand, brokerages encouraging excessive intraday trading through subtle gamification techniques pose a serious issue. Unlike casinos, they mask the risks with an illusion of investment, leaving many oblivious to the potential financial peril. This dangerous gray area certainly does not qualify as entertainment, and it's crucial to highlight and address this distinction to safeguard individuals' financial and mental well-being.

I think that we hope that entertainment, fun and adrenaline are motives. Though every time someone mentions a casino or someone online is discussing online casinos, the topic is more about the change in balance than it is about the experience.

You are right about brokerages and I see what you mean, however a good practical example of one that other parties can see first hand and compare with your posts, might be very useful for your points.

You are very right about the dangers that come with subtle, unsuspected involvement in gambling when it comes to what is thought to be investing.



Thank you, likewise. Your recent posts have been refreshing to read from a new member. Keep up the thought you are putting into your posts and I'll surely end up being a supporter of yours

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.



Picture source here

definitely, this business at the end of the day should generate revenue because of what they offer as services. otherwise, they will go bankrupt. this is why, whether casinos, or these brokers, they are here to earn money. they may have different strategies but the bottomline is to earn profits from their customers.
as a promoter of their services, and as a player, you should know your responsibilities. of course, you should not say negative criticisms to the industry that you are promoting of.

Can you make a clear illustration about how a broker like RobinHood actually does their business, and explain how they are taking advantage of their users? Because what I know about RobinHood is they send their users' bids/asks to a market-maker which then it's the market-maker that's getting their commissions from RobinHood for their service.

In a different context, RobinHood might be more comparable to a internet casino. RobinHood = Directs users' actions to market-makers. Internet casinos = directs actions to providers.

Shouldn't this depend on the agreement? I mean in most cases brokers are the ones that are paying. Let me explain to you how the casino that I worked with was establishing their wins and losses. They had few different games, all from different game providers, which mean they had like 6 if I remember right game providers that gave them about 300 games.

These games were automatically tied like an affiliate, which meant that if you gambled where I worked at that time, the money you lost went to the game provider, and then due to that affiliate income, the cas

---

You bring up a valid point, and there seems to be a bit of a misunderstanding. My argument is not against brokers who are also dealers or engaged in market-making. I'm specifically discussing brokers like Robinhood, which, as you pointed out, don't engage in market-making themselves but sell order flow to other entities that do. This situation illustrates the variety within the brokerage industry, and it's crucial to delineate these differences to fully grasp the landscape and the various ways brokers can generate revenue beyond traditional fees and commissions.

---

Absolutely, I completely acknowledge the necessity for brokers to earn through commissions and fees for the services they provide. My concern, as you've noted, arises when brokers use gamification tactics to entice individuals into making trades they might not otherwise have considered. This strategy blurs the lines between investing and gambling. When brokers push individuals to trade more frequently to earn points or achieve levels, it shifts the focus from smart, intentional investing to a more casino-like environment where frequency trumps thoughtfulness. This is where I see the potential for harm and manipulation, veering away from the fundamental purpose of investing platforms.

I believe you didn't understand. OP is debating that "Brokers" are not just "raking" in proftis through fees/commissions, but that they're also raking profits through the bids and the asks spreads, which is partly true, BUT how can they continue market-making if they keep losing money in the same market that they're market-making?

🤔


Read OP's post again and try to get it from his/her actual context.