3 Methods That Brokers Use to Profit on Traders and How to Prevent Them

Protect yourself from brokers tricks

Trading is always risky, but not only because it is difficult to read the charts and open the positions in the right moment. The other thing is that you should be careful not to fall victim to brokers’ various manipulations. In old times, brokers sometimes tampered with the price charts so they get more money from the traders. But this behaviour was stopped by the financial authorities who verify the validity of trading platforms. The brokers invented new methods of getting their hand on the traders’ money. And in this article, I want to tell you about them so you can stay away from them

Key Takeaways🔑

Trading involves inherent risks due to market unpredictability and broker practices.
Brokers may employ tactics like short timeframes and commissions that can affect your trading outcomes.
Patient and well-strategized trading can help mitigate these risks and lead to more profitable outcomes.


Short timeframes

The first trick is based on emotions, mostly greed. It is no so uncommon for traders to come to the market with the hope of making money fast. This could be achieved by trading short timeframes like 15, 30 or 60 seconds.

Avoid short timeframes

The truth is that it is very difficult to predict where the market will move in such a short time and the brokers know it very well. Price may change within a millisecond and it can cost you your trade. Each trade you lose brings more money to the broker from your account.


When you agree to trade with a particular broker, you must be aware there will be commissions taken from your trades. They can be really small, but on a bigger scale, they will bring some money to the broker. Imagine a fixed-time asset with a 75% payout. You may wonder what happens to the additional 25%. This 25% will become a commission that the broker collects to enable you to trade. If a lot of traders open 1-minute transactions for such an asset and, let’s say 100,000 trades win, the 25% commission the brokers will take will be multiplied accordingly.

Hidden commissions

The commission is something you need to agree for, but what you can do is to make fewer transactions so that less money will go to the broker.

Selling a trade

On most online trading platforms there is a possibility to end a transaction before its expiration. This is quite a good choice when you see that you are going to lose a lot, but remember that you are not going to receive all your money back. Part of them will go to your broker. And if the situation on the market changes and you have already decided to exit a winning trade, the money you gain is only a portion of the sum you could have earned.

So be careful when making a decision about selling the trade. Do it only when the market is turning against you and closing the transaction earlier will protect your balance account.

3 Methods That Brokers Use to Profit on Traders and How to Prevent Them 1

Pros and Cons of Trading on Olymp Trade

👍 Pros:

  • Free practice account for honing skills.
  • Availability of educational resources for better trading strategies.
  • Transparent commission structure.

👎 Cons:

  • Short timeframes can be risky due to market volatility.
  • Broker commissions on trades can accumulate over time.
  • Premature selling of trades can lead to potential losses.

Risk Mitigation Strategy Benefit
Patient and well-strategized trading Helps to prevent hasty decisions and enhance profit potential
Utilizing longer timeframes Offers more predictable market movements and reduces risk
Minimizing premature trade selling Maximizes potential returns and reduces broker commissions
Conducting in-depth market analysis Aids in making more informed trading decisions

How to avoid these tricks?

You have just learned about three tricks the brokers are using to get more money from you. Now I want to tell you what to do to defend yourself from them.

My advice is simple: be patient!

Patience is the key

Patience is a key skill in trading. You will need it often. First, go to the Olymp Trade demo account and check the effectiveness of the strategies you chose. Once you have done that, move onto the real account. This way you will save yourself from some losing trades and from losing money for the broker’s benefit.

I often suggest holding a position opened for a longer period. I would say, using 5-minute timeframe is a good solution. But again, you will need to be patient. Trading longer timeframes means longer waiting. First, you have to spend many hours analysing the market and awaiting the suitable market conditions to reveal. Then, you will have to wait for the whole 5 minutes for the result of your trade. Initially, it may be difficult. But with time, accurate analysis and strategies, you will see the majority of your transactions will end up gaining profit for you.

As I said before, you cannot fully avoid commissions. But you can pay them as little as possible by performing fewer trades. If you add up good market analysis and proper strategy, you will get lots of winning trades and more profit on your account and not of the broker’s account.

The last thing is to avoid selling the trades before their expiration. If you open the trade well prepared and open 5-minute positions, the chances for success are pretty high. And the fewer transactions you close before time, the more money for you and not for your broker.

Follow these steps, have patience and remember there is a free Olymp Trade practice account to check your skills before investing real money. Share your thoughts with us in the comments section below.

Wish you high profits!

Frequently Asked Questions

  • Q: How can I protect myself from broker manipulations?
    A: It’s important to be patient, conduct thorough market analysis, use longer timeframes, and avoid selling trades prematurely.
  • Q: Why are short timeframes riskier?
    A: Short timeframes are risky due to market volatility. Price changes can occur within milliseconds, leading to potential losses.
  • Q: How can broker commissions affect my trading?
    A: Brokers take a percentage from your trades as commission. While these might seem small, they can accumulate over time and eat into your profits.
  • Q: What are the benefits of patient and well-strategized trading?
    A: Patient and well-strategized trading can help prevent hasty decisions, allow for more comprehensive market analysis, and ultimately enhance your profit potential.
  • Q: Is premature selling of trades advisable?
    A: Avoiding premature selling of trades can maximize your potential returns and reduce broker commissions. It’s best to sell trades early only when market conditions are turning against you.

How useful was this post?

Click on a star to rate it!

Average rating 4.2 / 5. Vote count: 36

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Bart Bregman

Full time day trading, and helping out with Olymp Trade wiki in my spare time to create an awesome platform for beginners. I'm a digital nomad that travels the world while working from everywhere!

Recent Posts

This is default text for notification bar