Best non bucket shop broker.

D

drasfs

Which is the best retail non bucket shop broker? I know there are ECN type, like IB, Hotspot and MBT etc.

I would prefer a total cost that is less than 15 dollar/1 lot, and be able to scalp, which I havn't been able to do with other brokers for an extended period of time.

I thought hotspot was good, also only offering a minimum deposit of 7500 dollar. Though I've heard they are a bucket shop too(if you read the finer prints)..so after this, im really confused. One cant really tell if a broker ís a bucketshop or not or take interest in your trades or not.For instance oanda claim that they don't have a dealing desk, which they indeed do have. Emailing or calling them, if scalping is accepted they all say it is ok, but when indeed start scalping with them, they start trading against me.Plunging through reviews, all broker at least get some review complaining they are a scammer, so I've at least tried to do my due diligence, before starting this thread.

I would absolutely appreciate som good broker recommendations from someone who knows, since it's very confusing figuring out on your own without appropriate knowledge.

Howerer, after having read 100+ of reviews, my gut feeling is that IB(interactive brokers) is the one to go for? Ther adv/dis are:

Pros:Nonbucket,you can scalp,low spreads,you can trade many instruments in the platform.

Cons:widening spreads during news,bad platform, and bad customer support.
 
No one that have any ideas?

Im seriosly looking into either hotspot fx or interactive brokers.

Here is someone stating that the broker Hotspot is a bucket shop, even though, the broker states it's an ECN model.

"Concur with most of the other ratings and statements. Felt it imperative however to share some of their fine print in their agreement(s).
"Although Hotspot FXr expects that these prices will be reasonably related to those available in what is known as the interbank market, prices Hotspot FXr uses may vary from those available to banks and other participants in the interbank market. Consequently, Hotspot FXr may exercise considerable discretion in setting margin requirements and collecting margin funds."

"...it is important to understand that Hotspot FXr acts as the counterparty to all foreign currency contracts executed through the Hotspot FXr System. Hotspot FXr is not required to continue to make markets in foreign currency and may refuse to accept any order for any or no reason,..."

"Deposited Cash and Other Property; Risk of Default. The transactions you are entering into with Hotspot FXr are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy."

"Annex B Trading policies"
"4.2 Right to Change Margin Requirement and/or Margin Close Out Threshold. Hotspot FXr shall have the right, in its sole discretion, to change the Margin Requirement and/or Margin Close Out Threshold at any time. Hotspot FXr may change the Margin Requirement or Margin Close Out Threshold due to, among other things, the volatility of a particular Foreign Currency that is the subject of an Open Position or the reduced liquidity associated with holding an Open Position during certain periods of the day."

"6.2 Master accounts"
"CUSTOMER ACKNOWLEDGES THAT HOTSPOT FXr MAY PLEDGE ANY OR ALL AMOUNTS CONTAINED IN MASTER ACCOUNTS (this is where your money is sitting)TO ONE OR MORE BANKS AS SECURITY FOR THE HOTSPOT FXr’S CREDIT OBLIGATIONS TO BANKS IN CONNECTION WITH FOREIGN CURRENCY CONTRACTS THAT HOTSPOT FXr MAY ENTER INTO FOR THE SOLE PURPOSE OF HEDGING OR MANAGING ITS OBLIGATIONS TO CUSTOMERS. IN THE UNLIKELY EVENT THAT HOTSPOT FXr IS UNABLE TO SATISFY IN WHOLE ITS OBLIGATIONS TO A BANK IN CONNECTION WITH SUCH FOREIGN CURRENCY CONTRACTS OUT OF HOTSPOT FXr’S OWN ASSETS, CUSTOMER FURTHER ACKNOWLEDGES THAT THE BANK MAY, IN ITS SOLE DISCRETION, REQUIRE HOTSPOT FXr TO CAUSE FUNDS CONTAINED IN A MASTER ACCOUNT TO BE DELIVERED TO THE BANK IN SATISFACTION OF HOTSPOT FXr’S OBLIGATIONS. IN THE EVENT THAT AMOUNTS ARE WITHDRAWN FROM A MASTER ACCOUNT AND DELIVERED TO A BANK AS PROVIDED HEREIN, CUSTOMER’S SOLE RECOURSE FOR AMOUNTS WITHDRAWN FROM THE MASTER ACCOUNT SHALL BE AGAINST THE COMPANY AND ITS ASSETS."

"9. Limitation of liability"
"UNDER NO CIRCUMSTANCES SHALL ANY HOTSPOT FXr INDEMNIFIED PERSON (which is essentially all of them) BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OF USE, LOSS OF COST OR OTHER SAVINGS, OR DAMAGE SUFFERED OR COSTS AND EXPENSES INCURRED BY CUSTOMER (REGARDLESS OF WHETHER ANY SUCH PERSON OR ENTITY HAS BEEN INFORMED OF THE POSSIBILITY OF SUCH LOSSES, DAMAGES, COSTS OR EXPENSES) FROM ANY CAUSE WHATSOEVER (an all inclusive statement), WHETHER DIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL, ARISING OUT OF OR RELATED TO THE CUSTOMER ACCOUNT AGREEMENT."

So in their own words, they clearly retain the right(s) to do just about everything that we are all on this board to figure out how to avoid having done with our account(s).
It is becoming painfully apparent to me that what makes FOREX such a risky endeavor is not the market in and of it's self, but rather the Brokers, "ECN's", and Market makers who manipulate the playing field against us as a means of generating their own personal revenue.

That being said, "HotSpotFX" has left the door open for themselves (specifically and intentionally I might add) to perpetrate the exact same frauds as all the others who are "SCAMS". Now rather they excercise that option I suppose is a matter that remains to be seen (at least for me and the other posters here).

Conclusion, they are seemingly not all that different from some of the others. I personally feel if you're going to get into this market they are as good as anybody else unless you have the $50K handy for Dukascopy.
I'm throwing my $7,500 in the bucket next week with hotspot (yes I said bucket, go back and read their fine print...just because there happens to be other customers in the bucket with you that you can talk to doesn't mean it changes the structure of the bucket your sitting in.)"
 
Quote from drasfs:

I'm throwing my $7,500 in the bucket next week with hotspot (yes I said bucket, go back and read their fine print...just because there happens to be other customers in the bucket with you that you can talk to doesn't mean it changes the structure of the bucket your sitting in.)
More...

Wait... you're opening an account at Hotspot and you believe that Hotspot is a bucket shop?
 
I didn't write that. I was citating someone who believed it was a bucket shop, and i thought if someone here could give some comment on this guy i citated.

Here is some information on hotspot fx, that sounds good though:

About Hotspot FX

Selected as one of FutureBanker Magazine's "25 Top Technology Deals of 2000," and named as a winner by Global Finance in the category of "Best Independent On-line FX Systems," Hotspot FX was founded in January 2000 by a team of senior foreign exchange managers from major international banks. The Company is privately held and venture-backed by the ETF Group and renowned currency trader, Joe Lewis. Hotspot FX is leading the evolution of currency trading and electronic matching services that empower market advantage through full, anonymous currency market access. Managed by foreign exchange industry leaders, Hotspot FX was created to benefit the currency-trading participant. Clients using Hotspot FX's Internet-based ECN have access to a wide range of products and services for foreign exchange trading, including high-level research, charting and live news feeds. For more information, visit the company's website at www.hotspotfx.com.
 
drasfs


Registered: Nov 2005
Posts: 244


01-19-08 09:45 PM

Which is the best retail non bucket shop broker?
###############################


They are all bucket shop's. Definitly . Through client agreement
operator would signature ... company as counterparty,undertaking proprietary trading activities
 
" ...Lies must to be great ..."

Goebbels


1. http://www.elitetrader.com/vb/showt...ency#post901337

MBT-Steve
MBT Trading

Registered: Apr 2005
Posts: 171


11-17-05 10:01 PM

Milstar,

To help save time for everyone the MBT spot forex is pure agency.

Regards,

Steve
######################################

2. http://efxgroup.com/f/Comprehensive...Application.pdf

MBTF as counterparty -

...MBTF and its affiliates may also undertake proprietary trading
activities ...

Statement of MB personal by ET ,that MBT is pure agency is lies ...
 
Quote from ssss:


They are all bucket shop's.
More...

That about sums it up! They're all counterparty to your trades, what they do with them after that is up to them and their business model, and in some cases the customer whose trades they're on the other side of.

Now all the OP has to do is decide whether he wants his bucket shop with or without a dealing desk and whether he wants sugar-coated pampering or exposing to the harsh realities of the big bad market :)


Quote from drasfs:

I would prefer a total cost that is less than 15 dollar/1 lot
and be able to scalp
More...

Scalp when, in what market conditions?
 
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