The Truth About Trading: How Institutions, Brokers & Prop Firms Profit Off Retail Traders
📍 The Conflict of Interest in Retail Trading Education
Most trading educators aren’t traders—they’re salesmen making money off you, NOT the markets.
Many trading courses are backed by brokers who profit when you overtrade and lose money.
The goal of these "educators" isn’t to make you a great trader—it’s to keep you trading as much as possible.
📍 1. The “Gurus” Who Never Show Real Proof
🚩 1.1 The Social Media Scammers
Flashy cars, stacks of cash, luxury vacations—but no verified trading statements.
They make money from selling you dreams, not from actually trading.
Most of these guys rent cars, Airbnb mansions, and fake their lifestyle to lure you in.
🚩 1.2 The “Turned $500 into $1,000,000” Lie
If it were that easy, why would they sell courses instead of just trading?
They never show full trading history or withdrawals from real accounts.
Most of their “big wins” are cherry-picked demo trades designed to impress beginners.
📍 2. The IB Agreement Scam – How Brokers Use Fake Educators to Milk You Dry
💰 What is an IB Agreement?
IB (Introducing Broker) agreements pay educators for every trader they refer to a broker.
They get a percentage of your trading fees, spread, or commissions.
This means the more you trade (and lose), the more they get paid.
💰 Why This is a Huge Conflict of Interest
They don’t want you to be profitable—they want you to keep trading until you’re broke.
They push high-frequency trading, high leverage, and no risk management to maximize their IB payouts.
They never teach real trading skills—just flashy “get rich quick” tactics that lead to disaster.
📍 3. The Signals & Mentorship Scams
🚨 3.1 Paid Signal Groups (Where You’re the Liquidity)
“Join my VIP signal group! 90% win rate!” – LIES.
Many signal providers trade against their own members.
They use fake results, Photoshop, and demo accounts to make their signals look profitable.
🚨 3.2 “Mentorship” Programs That Teach Nothing
Most mentorships are glorified group chats with no actual education.
The “mentor” usually doesn’t even trade—they just repeat basic information from YouTube.
No real trading strategy, just motivation and mindset talk.
📍 4. Why Most Trading Courses Are Useless
🛑 4.1 The Same Free Information Packaged as a “Course”
Most courses just regurgitate free content you can find on BabyPips or YouTube.
They promise “exclusive strategies,” but it’s just basic indicators like RSI and moving averages.
They charge $500-$2,000 for repackaged bullshit.
🛑 4.2 No Proof of Profitability
They never show live trades, real withdrawals, or broker statements.
Any “verified” account is usually a fake MyFXBook or demo account.
If a trader is truly profitable, why would they need to sell a course?
📍 5. The Truth About Learning to Trade (What Actually Works)
✅ 1. Learn from Traders, Not Marketers
Find educators with real trading experience and proven results.
Avoid anyone who pushes lifestyle over skill.
A real trader doesn’t need to flex—they let their trades do the talking.
✅ 2. Avoid Signal Groups & Copy Trading
Learn to trade for yourself instead of relying on signals.
Most signals are random trades with no real strategy.
The goal is to make YOU self-sufficient, not dependent.
✅ 3. The Best Way to Learn is by Doing
Start with a demo account and test real strategies before risking real money.
Focus on risk management and psychology, not just entries.
Use structured learning from real traders, not shady influencers.
🔑 Key Takeaway:
Retail trading education is mostly a scam designed to keep you losing. Fake gurus, shady brokers, and IB agreements all work together to milk retail traders dry. If you want to be profitable, stop looking for shortcuts—learn real skills, think like a pro, and trade smart.