Scalping: Brokers trading against the retail trader

Rsagi

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I was told that there is a potential for a broker (trading desk) to trade against the retail trader (us).

Does this happen ONLY when using stop loss/limit orders? Can this be eliminated if I use market orders since then "they" cant "find" my stops?

Also, is the clearing house they use matters in regard to execution and would I receive a better execution if I joined a Prop Trading firm that uses say the Redi software which connects directly to Goldman Sachs?

I currently use Fidelity Active Trader Pro and was wondering if anyone here ever compared execution between Fidelity and other brokers?

Thanks in advance,

Steve
 
The only place this happens is in the forex market. They make money by capturing the bid/ask spread and know exactly what their risk is at all times. Other brokers are not trading against you. Most brokers do not trade at all. They have far more important things to do with their time...like soliciting more customers.
 
I hear somewhere, there are any Broker give BAN for scalping trader as they close position as lowes as 10pips.
 
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