More than a year ago I wrote about a crazy promotion by Swiss Dealing and another one by FX Pulp which offered to trade with ZERO spread AND ZERO Margin.
Recently I stumbled upon the following ETX Capital’s Spread Betting promotion called the Safety Net: “Unlike many demo accounts, which often have little of the speed or functionality of the real thing, we’re offering our new investors something totally different. Apply online with ETX Capital in just 3 minutes and you can start trading straight away in a live account with our £250 cash back safety net* against any net losses you make within your first 10 business days of trading.”
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And I’m saying come one, how crazy will the brokers get? After all, such promotions only harm the business instead of actually promoting fair and transparent trading. Any trader with functional brains will understand that when a broker offers you your lost money something’s wrong here. That trader should wonder how that broker makes it money then?
Pure broker make money from commission. That’s it.