Most retail traders do not actually realize how much of a negative effect broker’s trading restriction have on their trading success and potential profitability.
For example, on first look, a broker may seem very attractive in terms of the obvious things that each trader will look for, such as spreads, commissions, fees for depositing/withdrawing. However, we highly recommend that each trader, regardless of strategy looks deeper for limitations, restrictions and rules that are in place to help you fail.
Below are common restrictions, and you are likely to find any combination of them at 99% of retail, market making brokers.
Stop Levels: i.e. Stop Loss and Take Profits. Most brokers will have some kind of minimum market distances or minimum order hold time, and these rules or levels are in place to encourage traders to hold trades open for longer periods which statistically, means a greater chance of the order losing.
Traders can identify by crawling through the small print, however, the easier way to try to identify quickly is to check the specifications of any symbol on your broker, as below:
As you can see, Yadix, a true
STP Forex broker passes on true market conditions, and 0 (zero) stop levels.
Another great way to easily identify if your broker is a true STP broker or dealing desk is to check the limits or restrictions on maximum trade volumes. For example, a real STP broker will offer no maximum simultaneous orders volumes or actual trades that are open. Also, the maximum volume per trade should be between 100- 1000, and not limited to 5, 10, or even 50. Dealing desk brokers limit the amount of volumes or the number of trades in order to manage their own risk, so not to overexpose themselves whilst trading against you!
Yadix offers traders real STP conditions with maximum volume per each trade being set to 1000 lots! If needed, we can of course connect you to liquidity suitable for even higher trading volumes, see below:
Finally, another good way to quickly identify your broker type is to check the rules on hedging. Yadix as a true direct to markets execution broker passes on favorable rules, such as zero margin requirements when hedging a trade, you can even hedge when your account is in drawdown with negative margin, this gives you the best chances to pause for as long as you need and plan a recovery.
Most Dealing Desks Forex Brokers will charge at lease one leg of the hedge position, which means it eats your margin and increases the chances of stop out!
There are many other high value benefits most traders are not aware of simply by switching to a real STP Broker! Get in touch today to learn more about how STP trading can help you increase your potential profits.
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Kind regards,
Tony Edwards
Account Manager
Yadix Forex Broker
