Ask Me Anything About Being A Fx Introducing Broker

Status
Not open for further replies.
Quote from Deserwest:

So now one posters claims Oanda does not use Mp4 and another says they do! At least we got both sides of the story!:D
More...


FYI, Oanda now offers both the old Java platform and MT4.

I just don't know if the bugs (ill-timed disconnections, etc.) have finally been remedied.
 
Quote from ElectricSavant:

fxvipservice,

So this is my point.

Until the Wild West of Forex gets a centralized feed (Reuters tried but it did not catch on) it is hard to ever know when a dealer is playing games with your account...it is hard to prove.

I think that all of the dealers are thieves...including Oanda...But that is just me...

It seems the business model does not support dealers to just make money off of the spread...or else their greed sets in after they mean well...

Forex is Global and until we get a one-world economy (Biblical) the various countries will not fall in line and use a centralized feed...it is impossible to regulate Retail Spot Forex.

If I wanted to open a Forex Firm, it is far too easy...I just need to come up with the money for MT4 and establish an entity...in ummm...the Bahamas...No offense fxvipservice..

ES
More...

I understand the point you are making but spot FX is an OTC market and can't have a universal feed. If you are trading at a broker that is straight through processing your orders and is using an aggregated price feed of 15 of the top banks from around the world then that could be pretty close to a "universal feed."
 
Quote from asiaprop:

there are no centralized feeds per se but there are aggregator platforms (lava, hotspot fx, ebs, reuters,...) that do exactly that and their price feeds probably correlate 98%+ with one global fx feed, if there existed one. I trade fx with interactive brokers for many years now and I very often enter market orders and can count the situations on one hand when I was dissatisfied with the fill.

People who flat out deny the benefits of trading cash over futures are either ignorant or have very limited trading experience, imho.

I agree with the OP in one sense, it comes down to the choice of broker. So far I have not seen any broker that offers MT4/5 platforms that deserves my trades, simple as that. But then I also do not trust Oanda either. I would never trade cash on a feed that does a) does not provide STP, AND b) ever had any sort of affiliation with shady broking practices (FXCM comes to mind, they claim they now also have a STP model but I would not touch them even with gloves).
More...

I replied to ElectricSav's post before reading this. Right on point IMO , you have a very good understanding it seems of FX and the "system." People focus on MT4 being bad/shady but that is just software, it's the broker behind/controlling it that dictates what your trading/client experience will be. Similar to the argument guns don't kill people, people kill people. I will agree that having a gun around definitely increases the chances of getting shot just as having MT4 may increase the chances of a broker manipulating your trading experience but doesn't necessarily mean it is necessarily so.

The name of the thread is Ask me anything about being a FX IB and I wanted to present a forum to educate about what an IB is, the fx broker system, how IB's can add value, etc.
 
Quote from Deserwest:

Last time i was active in FX (three years ago) I traded both IB and Oanda forex at the same time, as kind of a personal experiment. I like their (oanda's) feed particularly for scalping as the volume seemed deep enough to read the short term support and resistance quite well. I could not get as clear a read with IB because I think forex was a add on business for them at that time and their in house volume was not as deep as was Oanda's. On swing trades, i did feel quite vulnerable to stop running with Oanda, (still not near as bad as was FXCM's) but again, one persons experience statistically means nothing.

Maybe this is too simplistic, but it seems the logical solution to having stops hit is just to not use them. To do that, one must either scalp and manually stop or go really long term. I kind of like the idea of trading smaller amounts very long term in highly uncorrelated markets because trading costs are minimal, there are no stops to be hit. Forex is supposed to be one of the most trending markets there is and if that is true, then the whole thing is just a matter of trying to see the bigger picture and trying not to panic as it unfolds.

Some of the posters have suggested that data is subject to manipulation, and if that is true, there is no point whatsoever in even using any numerical data analysis, technical analysis, etc, as the garbage in garbage out rule invalidates every indicator or even simply eyeballing the live feed.
More...

Hello and thank you for posting. The online trading game has certainly changed/progressed from 3 years ago. They system you suggest may work for you but if having stop loss or take profits is part of your sytstem/trading then I believe you should be able to use them without having to fear the brokerage(who should be your trading ally) would use those against me purposely is completely unacceptable.
 
So what is the value of using an introducing broker? ????

The power of a group, when you open an account it represents a small percentage of the brokerage deposits. Whereas when you open through an IB you leverage our volume relationships that we have established and even if you only fund a $500 account you are part of an IB group that may have millions on deposit and you will get that level of service.
There are many other benefits as well such as complimentary products such as education, training, mentorship, expert advisor programming, vps, managed accounts, backtesting, etc.
You also get the benefits of special promotions like 1 broker is offering 20% deposit bonus if you open and fund by month's end....

Good luck in your trading!
 
Quote from fxvipservice:

Hello and thank you for posting. The online trading game has certainly changed/progressed from 3 years ago. They system you suggest may work for you but if having stop loss or take profits is part of your sytstem/trading then I believe you should be able to use them without having to fear the brokerage(who should be your trading ally) would use those against me purposely is completely unacceptable.
More...

How can any dealer be the traders ally when they profit from the trader's losses?
 
Quote from marketsurfer:

How can any dealer be the traders ally when they profit from the trader's losses?
More...

A dealer would definitely not be the traders ally. Not all brokers are running a dealing desk. There are brokers that are straight through processing all orders and are operating on a conflict free model.
 
How can dealers state that they pass through... when they must save up the orders to build standard lots?

ES


Quote from fxvipservice:

A dealer would definitely not be the traders ally. Not all brokers are running a dealing desk. There are brokers that are straight through processing all orders and are operating on a conflict free model.
More...
 
Why can an IB offer more compared to just going direct? A middleman is just another hand to feed no?..Heck if I had big enough volume I could negotiate a much better deal direct rather than go through a middleman...So I guess IB's are for pikers no?

ES

Quote from fxvipservice:

So what is the value of using an introducing broker? ????

The power of a group, when you open an account it represents a small percentage of the brokerage deposits. Whereas when you open through an IB you leverage our volume relationships that we have established and even if you only fund a $500 account you are part of an IB group that may have millions on deposit and you will get that level of service.
There are many other benefits as well such as complimentary products such as education, training, mentorship, expert advisor programming, vps, managed accounts, backtesting, etc.
You also get the benefits of special promotions like 1 broker is offering 20% deposit bonus if you open and fund by month's end....

Good luck in your trading!
More...
 
Quote from ElectricSavant:

How can dealers state that they pass through... when they must save up the orders to build standard lots?

ES
More...
Some brokerages straight through process even the 10k volume.
 
Status
Not open for further replies.
Back
Top