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In the intriguing world of finance, constant rumors circulate about the manipulation of trades by brokers and the loss of capital attributed to questionable practices. This article aims to shed light on these claims, analyzing the truth and the process of setting up financial companies.
Trade manipulation by some brokers is a reality. From the removal of earned swaps to manipulation of entry prices, slippage, and changes in account conditions, professional traders take measures such as reviewing their daily statements to ensure the integrity of their positions. This practice tends to be more common with funding above 5,000 USD.
Many capital managers attribute losses to broker manipulation, but this claim is not always accurate. Burning an account by more than 50% requires consistently unfavorable decisions or lack of management (martingale or day trading without stop loss). Blaming brokers can be a strategy to avoid personal responsibility.
Profit retention is a growing practice, even among reputable brokers. Excuses such as the use of an invalid IP, additional KYC processes, or prohibited technologies are used to withhold profits. The fight to recover these earnings can be a lengthy process, as it often indicates that the broker was acting as the counterparty (B-Book).
Key strategy: Claim the initial capital first, then consider legal action for the profits. Operating while regularly withdrawing deposited capital can also be an effective strategy.
Capital managers must understand the differences between MAM, PAM, and Copy to advance in their knowledge. Negotiating commission rates with brokers is essential, and PAMM emerges as an attractive option for managing third-party capital without the legal burden of an investment fund.
For those aspiring to establish their own financial company, deep legal and financial knowledge is suggested. In the next article, I will explore the implications of creating your own fund and broker, providing valuable information to take the next step.
Written by: Stephany Rojas Duque