Forex Brokers – Tales From The Back Office How Broker’s View Clients
Forex brokers love them or hate them you have to deal with them. Many traders think their broker is out to get them and see them as the enemy – but what is the truth about forex brokers? Well, I worked in the back office of one for ten years so let me share my story.
My job was in the margin department and my job was to look after client balances and make sure no one had a debit or even got the chance to give us one.
It was my first job and I was intrigued by the world of fast cars and millions made and lost each day.
On my first day, I was called in to see the director, a big man by the name of Declan.
He chain smoked continuously and drank whisky all the day and the day I went to see him was no different and it was only 10am!
He invited me to sit down, fixed me with his eyes and said – Kelly remember this:
-No debit balances, everyone on your run is going to blow up at some point, so watch them like a hawk and close before margin call?
He thumped the desk and barked – the rule here is:
-If in doubt close them out!
-What about the ones who win?
Was my naive reply.
He just chucked “the ones who win” and shook his head and laughed loudly.
What I was of course going to discover is very few traders win and most lose but this was not the due to the brokers & they were already assuming that, in fact it was in the P & L Of the company that they all did!
Despite this, the brokers on the desk did everything they could to help but most traders we had were like gamblers, and simply traded all the time.
Most had no logical method and when they lost, they got frustrated and traded even more. I can vividly remember one day trader who was seeking reassurance from one of the brokers.
-Why don’t you see my point of view the yen is going up cant you see it?? He yelled.
-Sir, the broker pointed out
-Why don’t you change your point of view, as the price is telling you you’re wrong?
Which I thought was a good answer but the phone was slammed down, as the trader cast doubt upon the trader’s mother’s origins.
What surprised me about our traders was the way they refused to accept they were wrong, even though it was staring them in the face. The brokers would give advice when asked but were ignored and got blamed when the trader lost.
The fact was the brokerage I worked for was not out to get their clients, the brokers were generally decent guys, trying to help but as Declan observed about traders…
-They can’t help themselves and they couldn’t.
Are things different today?
No human nature never changes and the vast majority still lose, still get emotional and still blame anyone they can but themselves.
After a few weeks my naivety had gone and I was trying to keep the clients from going debit and it was a full on job.
After one obnoxious day trader wiped himself out, Declan had a broad smile and whisky in hand and as he strolled out into the dealing room and shouted “Tommy’s wiped” and turned up the stereo and the queen song “another one bites the dust” blared out and everyone joined in the chorus.
“Another ones bites the dust and another one does and another one bites the dust”
I found myself joining in as well my naivety of a few weeks ago had gone and I could sadly associate with everything Declan said
Did we hate our clients or set out to make them lose?
No. We provided a great service, good fills and impartial advice if asked – it�s just.
-They can’t help themselves and I still remember Declan’s words today as clear as 20 years ago.
If you blame your broker, then you really don�t understand they transact trades and the rest is up to you.
By: kelly Price
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