Blacklisted by Brokers

This is the thread I retrieved from old elitetrader:
http://www.elitetrader.com/vb/printthread.php?threadid=52276
and one in another forum
http://www.forexfactory.com/forexforum/showthread.php?p=7920
talking about the dirty trick from the brokers

In short, it is very likely to be blacklisted if
1. open and close your trades within 2 minutes frequently
2. always trade in the data release times like non-farm payroll

OldTrader:
From Wikipedai, http://en.wikipedia.org/wiki/Foreign_exchange_market#Retail_Forex_Brokers
"Forex futures volume has grown rapidly in recent years, but only accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20)." I think for retail clients they cant afford the min capital req, the large trading size or the high commissions from the exchange, thatz why FX futures account for only 7% out of all trades?

Jayford:
I have heard that banks can also blacklist certain clients and ask the brokers not to accept any orders from them, I would like to know when the broker route the orders to bank, does it contain the client ID ? or the broker aggregate all the orders and send to banks ?
 
Quote from thomsonfx:

This is the thread I retrieved from old elitetrader:
http://www.elitetrader.com/vb/printthread.php?threadid=52276
and one in another forum
http://www.forexfactory.com/forexforum/showthread.php?p=7920
talking about the dirty trick from the brokers

In short, it is very likely to be blacklisted if
1. open and close your trades within 2 minutes frequently
2. always trade in the data release times like non-farm payroll
More...

Good useful information, but why would a broker care if we win or lose? They are making commissions off us either way. Are these not legit brokers that ban people for winning or scalping the market? I can't see why they would ban a client. Is this rule just for forex? Or does it apply for stocks too? So will cybertrader ban us for scalping level 2 quotes with inet every 30 seconds or only trading the data release times? I never heard of a broker banning a client. But I never traded forex either - only stocks.
 
Quote from thomsonfx:

Dear all fellows,

I had decided to devote my coming times to go automated but it really shocks me after hearing from some of you.

Below I would to verify sth...

Are the following potential behaviour will be blacklisted by brokers/liquidation bank and/or bucketshop (provided that it shows from your trade record that win consistently) ?

1. The so called scalping technique. Simply buying on the ask and selling on the bid. Question: arent the broker is receiving the spread as income ?

2. Arbitrage opportunity like the triangular arbitrage from cross currencies. Question: Again, what's wrong with it ?

3. Trade on data release. Question: That's why FXCM ban all traders from trading on data release times ? The bucketshop or the bank provide for liquidation must lose on average right.

4. Trade on news header (this is what I heard from a private message).

5. Automated trading on short timeframe like algorithm applying on minutes-based timeframe. Question: If really so, it's really ridiculous.. Then no successful day traders can survive from the broker's platform right ? Should those winners turn themselves to earn in a longer timeframe and hide under the radar ?

I heard that the broker will manually act against your account before blacklisting you. One mean is by slippage. In my understanding, slippage means the quote offered to you is significantly different from those offered in the market. Have anybody tried to log down the price which trigger the buy/sell signal from your trade and also the price for the corresponding trades logged in the broker's side? How serious is the slippage ? Another mean is by requote. For every trade you make, if it is not in favor for the broker, they say that your order is cancelled and give another quote to you for acceptance until your trade end up with a wrong bid, at least in the short term.

In the last attempt, if the bucketshop cant find any trick to play against you. They will try to risk your deposit ?!

From a quote in another web site:
"Good luck on trying to find the scalpers. Do you know what will happen if casinos catch you card reading? They throw you out. The difference here is a card reader actually can make some seriously cash before being caught. The life span of a forex scalper tend to be very shortly lived. I believe all forex dealers have some kind of program that screens for scalpers. They can catch you after couple trades. Once they find you, you will be put on the blacklist permanently. If they are nice, they will let you withdrawal and forever ban you. If they are not nice, they will take some serious actions. "

What "action" can the broker do to you if you are being caught by scalping ? Have anybody heard that somebody's deposit cannot be withdrawn becoz of scalping ? Please advise ! Thank you very much !!!
More...

You can do all this with IB. IB does not artificially widen the spread. We make our money from a small commission charge on each order. In fact, if you make money then we should make more money by you increasing your trading volume.

As for triangular arbitrage. Don't fool yourself. These are major banks providing the liquidity, and they know how to price a market. They aren't going to give you free money. Most of the "golden" triangular arbitrage opportunities that are touted on the forums - do not actually exist. The posters usually do not take into account the interest differentials and relevant country holidays.
 
This is a story from 1K to 1M in 18 months

http://www.forexfactory.com/forexforum/showthread.php?t=5742&highlight=smjones

which is equivalent to 46.8% in one month
or 2-3% with 80-90% success rate.

Seems starting from 1M brokers will act against you seriously.. Fine.. I am satisfied with 1M.. by that time I change my mode of trading with other things else...

Or do the same with other brokers where I can get another 1M

Then I end up with dozens of M

Can retire already.. sorry dreaming
:D
 
Quote from Steve_IB:

You can do all this with IB. IB does not artificially widen the spread. We make our money from a small commission charge on each order. In fact, if you make money then we should make more money by you increasing your trading volume.

As for triangular arbitrage. Don't fool yourself. These are major banks providing the liquidity, and they know how to price a market. They aren't going to give you free money. Most of the "golden" triangular arbitrage opportunities that are touted on the forums - do not actually exist. The posters usually do not take into account the interest differentials and relevant country holidays.
More...

Ideal Pro is great for forex apart from when the mkt gets volatile
 
"From: G. R. Fort lauderdale, Florida
Rating:
Date of Post: 02/21/06
Review: I traded with Oanda in 2004 to 2005. They closed my account and received a personal email and phone call from what turned out to be there CEO. They said if I wanted to keep trading on their system I would have to hold trades for at least 5 minutes. Guess they did not like my big quick profits during the news. "

A proof that trading with the news is not allowed.

I have also ever got a single trade on NFP with 80% capital increase with 50% of capital for the trade.. for just half a minute. I did that with FXCM last nov/dec. But then it doesnt work for the following months and soon FXCM not allow to place orders around the data release times.
 
Quote from thomsonfx:

"From: G. R. Fort lauderdale, Florida
Rating:
Date of Post: 02/21/06
Review: I traded with Oanda in 2004 to 2005. They closed my account and received a personal email and phone call from what turned out to be there CEO. They said if I wanted to keep trading on their system I would have to hold trades for at least 5 minutes. Guess they did not like my big quick profits during the news. "

A proof that trading with the news is not allowed.

I have also ever got a single trade on NFP with 80% capital increase with 50% of capital for the trade.. for just half a minute. I did that with FXCM last nov/dec. But then it doesnt work for the following months and soon FXCM not allow to place orders around the data release times.
More...


I'll be honest with you ... you've seen the responses and threads on other forums and yet you still want to pursue this. Your time might be better spent elsewhere in the things I have mentioned in my pm to you previously.
 
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