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Trading Nut | Trader Interviews - Forex, Futures, Stocks (Robots & More)
253: FOREX BROKER EXPOSES: Scams, Setup Costs, A/B Book, Liquidity & Prop Firms w/ Anish Lal
Nov 15, 2023
Anish Lal, Director at Blackball Markets, brings over 12 years of forex brokerage expertise. He exposes the mechanisms behind A-book and B-book models, emphasizing the tricks some brokers use to manipulate market conditions. Lal also discusses the hurdles and costs of setting up a brokerage, detailing regulatory challenges and the importance of a solid business plan. The conversation dives into execution speeds, liquidity issues, and how social media influences trading practices. Listeners gain invaluable insights into avoiding scams and navigating the brokerage landscape.
01:14:11
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Quick takeaways
- The podcast distinguishes between A-book and B-book trading models, highlighting the ethical implications of each regarding broker-client relationships.
- Market spoofing is identified as a critical issue, emphasizing the need for traders to remain vigilant against manipulative practices that may jeopardize their investments.
Deep dives
Understanding A-Book vs B-Book Brokers
The podcast delves into the fundamental differences between A-book and B-book trading models used by brokers. In an A-book model, brokers connect clients to another broker, often ensuring transparency and accountability in trade execution. Conversely, the B-book model allows brokers to internalize trades, which can lead to potential conflicts of interest and unethical practices, such as manipulating spreads and execution delays. The discussion highlights that while A-book brokers provide greater trust to retail traders, B-book brokers can exploit their positions to profit at their clients' expense.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode