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  1. #1
    Veteran Member randy1953's Avatar

    Not sure where to place this post? !!!

    A very serious question. I was chating with a rep of a Forex broker Tallinex about the possibility of them allowing BO trading.
    Well this guy went on and on that they would never do it because the BO trader really has no chance of winning with any BO brokers.
    Basically he said with BO the broker trades against the traders as there is no counter party such as banks with forex brokers.

    They told me in some emails that all BO brokers because of the way they are set up and you are trading against the broker that in the long run you will alway lose. I went back and forth with them but maybe they are correct. This Forex broker says they re a true ECN broker which is a very good thing.
    Here's the last email I received from them.
    What do you guys think is Tallinex correct about BO brokers? If this is true then does it make much sense to trader Binary Options?

    Email from Tallinex below:

    "What I'm saying is that BO brokers are really no different to market-making FX brokers - they lose whatever you win.

    Both will typically allow a trader to make some profits until they start trading bigger positions, and then that trader will lose (manipulated or not) because the broker needs to recover those "winnings" and relies on trader losses for its operating profits.

    An ECN broker (i.e. Tallinex) earns its profit from spread or trade commission and has no vested interest in clients losing as the risk is passed off to liquidity providers (banks) who act as counter-party to each trade. By contrast, a BO / MM broker assumes all risk (since there's no counter-party) and *requires* clients to lose in order to be profitable as a business "
    end of his email.

    So what do you guys think? If this is really true then is it not safer and far better to trade with a ECN forex broker that is not invested at all if you win or lose?

    Now my own limited thinking was that I do know that BO brokers have no counter and yes you are trading against them and yes when you win you are winning money from the broker that much I knew.
    However I always thought since there are always more losers than winners and when the payouts are not 100% that this is enough profit for a BO broker. But Tallinex view is it's not. that if you do well and begin larger more money trades then the BO broker will put the brakes on you and stop you from winning.
    I do hope that Tallinex view is not all correct as I really enjoy trading BO. I truly wonder if there is a real answer to this, my hope is that there is. I much rather know the playing field now then get into some real money and see it gone not from my lack of trading skill but because the broker simply cannot afford to lose consistent larger amounts of money.
    Thanks
    Randy

    PS It could also be that this broker Tallinex is just trying to sell his ECN product therefore he takes this position with BO brokers and also retail Forex brokers.
    Last edited by randy1953; 01-04-2016 at 03:45 AM.

  2. #2
    Administrator Martin Kay's Avatar
    First, who is Tallinex? A new FX broker ain't no much better then a new BO broker. and a sales pitch is always a sales pitch, everybody wants to sell you something and prove they're the best value for your money.

    Second, we all know already that we're trading against the house (market maker). It's the same for Casino as an example. So what, casino don't want you to make money? They do, that's why people are coming back. in the long run, it's really up to the trader.

    If any broker wants to mess with you, they'll do it, ECN, MM, BO.... Go for respected companies, and make the best of your trading.
    “Don't believe anything you read on the net. Except this. Well, including this, I suppose.” ― Douglas Adams

  3. #3
    Veteran Member randy1953's Avatar
    Quote Originally Posted by Martin Kay View Post
    First, who is Tallinex? A new FX broker ain't no much better then a new BO broker. and a sales pitch is always a sales pitch, everybody wants to sell you something and prove they're the best value for your money.

    Second, we all know already that we're trading against the house (market maker). It's the same for Casino as an example. So what, casino don't want you to make money? They do, that's why people are coming back. in the long run, it's really up to the trader.

    If any broker wants to mess with you, they'll do it, ECN, MM, BO.... Go for respected companies, and make the best of your trading.
    Yes I think you are correct. My weakness is I tend to fall for a good sale pitch at first. that's why I really like our forum a good place for a reality check now and then.
    thanks
    Randy

  4. #4
    Senior Member sofaking's Avatar
    I've heard similar statements from Forex brokers/services saying that the odds are always against you in binary options. But in my
    case I'm pretty sure he was just trying to sell me his Forex product.
    But making money in BO is possible if you spread your risk among several trusted brokers and withdraw small amount regularly. For those who win at binary options I guess there are a lot more people who lose their money.

  5. #5
    Solid Member pak12345's Avatar
    You can make money in BO if you are consistent, knows your odd and able to do effective money management. It is quite easier than forex and like I have noted its not like casino but a little exchange where you are given an opportunity to make good predictions within the specific time frame (expiry).

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