Topic: Casino vs. Stoc,Forex&Crypto Broker: Who's Really Playing You in the Money Game - page 17. (Read 3437 times)

Brokers only play idiots who believe that they play a role in improving their trades/actions.They are not related into gambling that much or at least I am not aware of such brokers as of yet while I know tons,really really tons of them offering their services to people who trade or do a lot of buying in exchanges and stocks.

They are winning a lot of money sure but as I said only from people who deal with them and lately I have seen fewer and fewer people using them so that is a good thing overall.In gambling and casino though the casino provider has setup a house edge which promises overall profit to the casino in the long run and that's it.

The broker is similar to that bank in that you let him retain your money and then he grows it at a higher rate than the percentage you agreed upon. Because he has your money, it appears that he can lend it and earn a high interest rate—for example, 30%—but will only offer you 5%.

As a gambler, you have your money and control it, whereas the casino controls the game on which you stake money. That is why gamblers frequently lose, and just a few people always win here.

If it's a possibility, why wouldn't they be? The entire casino industry is built upon exploitation and gaining edge over others. This kind of theory is in line with the way the industry inherently is. It would not be at all surprising if this theory were true...though even if the truth was out there, do you think that would stop people from rolling the dice? Will or have you stopped rolling the dice after learning this possible fact? This is the larger, sadder point.

Thank you for sharing your perspective on this matter. Your point about the minimal commission rate charged by brokers for maintaining their operations and providing services to customers is valid, and I respect that insight. It’s essential to acknowledge the operational costs involved in running a brokerage, and indeed, they are not the same as casinos in terms of their business model and revenue structure.

To clarify my stance, I'm not objecting to the legitimate and traditional operations of brokers who facilitate investments and offer a platform for trading. My concern is specifically with the growing trend of brokers adopting strategies that resemble gambling platforms, such as promoting high-frequency trading, tournaments, and other gamification strategies which encourage individuals to trade more than they might have intended to, often without a solid understanding of the risks involved.

When brokers push for such practices, it blurs the line between investment and gambling, potentially leading to detrimental financial decisions for the average investor. My intention is not to undermine the role of brokers in the financial ecosystem, but to highlight and discuss these emerging trends and their implications for investors. Your thoughts contribute meaningfully to this dialogue, and I appreciate the balance they bring to the conversation.

Thank you for your comprehensive insight. You’ve hit the nail on the head regarding how both casinos and brokers operate in ways that inherently favor their own profitability. The house always aims to win, whether it’s in a casino setting or the brokerage industry. I agree with your points on commission fees, trading fees, and other means that contribute to their earnings.

You bring up an excellent observation about the perception of casinos versus brokers. Many people indeed view casinos as outright money-draining establishments while viewing brokers under a more positive light. However, as you pointed out, brokers encourage frequent trading, which accumulates more fees for them, rather than promoting strategies like buy-and-hold that may be more beneficial for the investors in the long run. The transparency of these mechanisms certainly deserves more attention to ensure that all participants in the financial markets are on an equal playing field. Your thoughts add a significant depth to this conversation, and I appreciate your contribution.

OP in as much as the both are business oriented, they are being done for profit making and so would go to any extent to ache in money by any or all means from their clients. Worst scenario is that their clients would only complain and go and there is nothing one can do about it.

Brokers do a whole lot to making sure their clients trade so in that case can go to any length to get their commission, fees and lots more based on the agreed terms for which both parties have reached.

Unlike the brokers, Casinos are quite different and can not be compared to brokers but the both are business done for profit making. Casinos are set up for gamblers who play under probability of wining or losing their games however the case may be, it is either a win win thing or otherwise which gives the casino the opportunity to to make their gains from fees, loss from gamblers etc.

Well, yea, that's why they're brokers. I reckon the profit margin they have per customer is rather minimal though, but they adapted to that by having more customers instead. I mean brokers were possible because they have their own methods, maybe even internal groups that let them have these kinds of methods.

If they were shouldering risks, I doubt the existence of brokers would've even been possible. Well, they might have some other forms of risks that gambling itself may not have, not one so I can't really say but hey, I reckon there should be some sort, just not directly related to the gambling part itself. And as I've said, I reckon their profits are rather small as well so I guess that could be one risk.

I think what the ops may mean to say is that the internal  leverage and commissions that are charged by a broker which is not the same as what commission both casino and exchange charges,  although I have thought of this on multiple note how it has become unavoidably unable it has become for me to use the services of a broker unless it based on special need,  because I can't bear being charged by percentage when I move money from wallet to Asset on the same exchange which is what is mostly being done by all brokers.

But on exchange we are not charge such commission when we move fund around wallet within the exchange since it is and internal transaction so I don't know why brokers charge such a commission any ways.

Remember that broker or simply exchange is just charging minimal commission rate for all the trades while they are paying for there personnel and servers to run the orderbook for their customers. Casino on the other hand get fixed profit on house edge plus the losing money of each player which is too high percentage of profit compared to broker.

I’m not sure what you are trying to justify here and what do you want to do with broker way of earning commission. It’s odd too that you compared broker to gambling while they have different market. It’s not their fault that they offer services that is risk free for them. In fact, Only casino and other form of gambling is literal fighting with players using their bankroll.

Brokers are playing those who are using brokers, those who are trading with any form of broker, and using it on their daily trade. They are being exploited through commission fees, trading fees, liquidation, and every other means necessary that the customer will enrich the broker owners.
 
The same is also applicable to casinos. Gamblers are the ones who the casinos are playing in the money game; they are built to favour them, the owners, and the gamblers are just trying their luck, adding together some skills and any possible strategies, which means they know they can use in winning their games. But at the end, it's not a win-win situation; the casino's are always there to milk many while allowing a few to win as ell.
 
Both brokers and casinos are businesses owned by private investors who are out there to make a profit, so they will have to make it.

You know how casinos lay it all out, they're taking a gamble just like us? But get this, brokers might just be outdoing them in their own sly way. I’m saying brokers might actually be worse. Why? They’ve got this neat, little setup where they rake in their shares through bid-offer spreads and commissions, all while carrying zero market risk. It’s like having their cake and eating it too, but in secret. We’re all out here rolling the dice, while brokers are the house, cashing in risk-free. What’s your take? Are brokers just silently stacking the deck, snagging a surefire win with every trade we make?