Every forex broker is evil?!

Quote from Moe27:

its plain and clear if you believe in what you say then don't trade forex period. don't try to scare the rest of us because im doing good trading forex and wouldn't trade nothing else.
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Sorry, but the information above is not said by me. I thought I have made this clear.
I'm just a newbie. How come I could know so many things and make such big claims?
The informaton above is just from others which can be found from the reference sector. I do nothing but just some organizations & then copy & paste.

Now here's the question:
- you says some of them are misleading or simply wrong. Then which ones? Why? I would like to hear more from both sides.
 
You are better off in retail spot pretty much only if your account is small and you will last longer trading very small lots while you learn. Otherwise, you trade the cme futures.
 
Quote from 2cents:

no but there's more than 'one' misinformation / misinformed generalization in your laundry list pal, and there is already more than enough of that sort of generic bullshit flying around to try and scare people off this or that... honestly if you can be scared so easily by such stuff, might as well stay away from the markets, regulated or not... having said that, it shld be pretty obvious that regulated markets offer more security... only problem is, at true beginner level, its far easier to trade spot fx than CME eFX futures... and dont ask why, just try live trading both and come back to the board to report... have fun!
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Thanks for your comment.

Strictly speaking, as long as not all statements are misinformation, you couldn't say all are wrong/lies. for exmaple, even if you get 99 out of 100 answers wrong, you coudn't say you have answered all questions wrongly. I think that's just simple logic. Anyway, I know people are casual when making their comments.

Funny enough, there's once an experiment which poeple are asked to read a material which contains most valuable information but mixed with a few "biggest & obvious" bullshxt! Most people commented it as "valueless / all bullshxt / rubbish". Only some managed to comment "most are correct but have made a few biggest msitakes". But no one commented it is "valuable / all truth / all correct". What does thee result tell? Are humans hard to please, or are humans subjective in nature? :cool:

Anyway, back to the topic, I'm not scared, or I just hide inside the bed & won't be here. ;D

I would like to hear both parties. That's why I post this infomration out and know which ones are wrong (as a reminder, this information is NOT said by me, it IS FROM THE REFERENCE SECTOR. Nearly all information is derived from a seemingly expert, Joss Roe. Hope you make this clear now!).

Simply saying "wrong / all lies" doesn't help, it's not the purpose of this thread. It would be great if you don't mind to pinpoint which ones are false as I would like to hear more from both parties.
 
Quote from illiquid:

You are better off in retail spot pretty much only if your account is small and you will last longer trading very small lots while you learn. Otherwise, you trade the cme futures.
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honestly, not so clear... its actually more natural to move from retail spot single broker/dealer platform, to ECN-type or true ECN... then if you have come to a stage where you trade rather large size (>20mio clips in fast markets, or >100mio in normal conditions) you'll find that liquidity & spread terms are far superior on the ECNs than on CME... of course the guys who've been trading futures for years and are coming to the forex find it way more sensible / secure to do it via CME eFX, and thats totally understandable... a regulated market such as CME has safeguards and guaranties that an ECN can't provide, there is always a trade-off...
 
Quote from illiquid:

You are better off in retail spot pretty much only if your account is small and you will last longer trading very small lots while you learn. Otherwise, you trade the cme futures.
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although i can see the logic in this statement, i cant agree.

if a newbie trader is starting out, he wants every edge he can get. putting himself against the tide by trading at a bucket shop is more likely to make him go bust than trading a at regulated even playing field (futures). if he doesnt have the cash to trade futures, he should either:

position trade stocks

wait until he does - meanwhile continuing to build skills paper trading.

whats the big deal with fx anyway?

a good trader should be able to make money in most markets. you cant tell me that out of say 3000 liquid stocks these isnt one there making better moves tan say the 5-10 fx pairs.


wmwaster - good post. i agree with all your points. unfortunately few here will take heed of your warning, as they are emotionally attached to the fx market. i have the odd feeling that this is ego driven - they think they have made it because they believe they are trading against the banks/'pro's' etc. they cant admit they are really trading against some shyster in some grubby boiler room in detroit. in fact, as you imply, they arent really trading any market! they are just trading against some quote maker that sometimes loosely gives quotes that may sometimes represent that of the true spot market.
 
If you feel so dissatisfied with the bucketshop model then trade with an ECN model broker like Interactive Brokers.

But lets be realistic - success or failure in forex, as in futures, will have much more to do with your edge and your discipline than anything that a broker does. Its just noise; irritating but still just noise. Like the thread :)
 
Ok fine, I made that statement with a certain audience in mind (individuals who have around 5K or so to "try out forex") -- that is, the concerned readers of this thread :). It was the one and ONLY reason I could think of to concede to using an fx broker. But let me clarify the stance I've always held.

Agreed, one should avoid retail fx like the plague; agreed, futures are really the only way to go for the typical individual trader -- there is no reason a successful individual fx trader would not migrate over to cme futures eventually, so you may as well learn to deal with that environment from the start; agreed, if you manage to "outgrow" cme and are going to swing 8-9 figure blocks then you would go back to spot and deal directly with institutional market makers (I'll let everyone know when I get there ha ha ha).

Quote from kiwi_trader:

But lets be realistic - success or failure in forex, as in futures, will have much more to do with your edge and your discipline than anything that a broker does. Its just noise; irritating but still just noise. Like the thread :)
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And agreed :)
 
Quote from kiwi_trader:

If you feel so dissatisfied with the bucketshop model then trade with an ECN model broker like Interactive Brokers.

But lets be realistic - success or failure in forex, as in futures, will have much more to do with your edge and your discipline than anything that a broker does. Its just noise; irritating but still just noise. Like the thread :)
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lol - good points.

to be truthful, id be interested in knowing where i can find out about these ecns.

the only ones i am familiar with are the interbank ones - ebs, reuters, autobahn (deutschebank). i hear of these things like hotspot and lava but am a bit suspicious - the banks arent there, so will there be any real liquidity? who is making the liquidity?
 
Quote from FredBloggs:

lol - good points.

to be truthful, id be interested in knowing where i can find out about these ecns.

the only ones i am familiar with are the interbank ones - ebs, reuters, autobahn (deutschebank). i hear of these things like hotspot and lava but am a bit suspicious - the banks arent there, so will there be any real liquidity? who is making the liquidity?
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Try this post: http://www.elitetrader.com/vb/showthread.php?s=&threadid=65449&perpage=6&pagenumber=1

Good Hotspot post: http://www.elitetrader.com/vb/showthread.php?s=&threadid=65847&perpage=6&pagenumber=1

Taboni, 2cents, Lon Eagle, and others have posted a lot of great information in this area.
 
Quote from kiwi_trader:
But lets be realistic - success or failure in forex, as in futures, will have much more to do with your edge and your discipline than anything that a broker does. Its just noise; irritating but still just noise. Like the thread :) [/B]
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Somewhat true.
However if the brokers are against you, you are at a disadvantage and are more likely to lose.

I don't know if they lie, but some did report there's a spike on their chart to rid their stop orders (while the spike just simply doesn't exist in other brokers).

Also when the price gathers strong momentum, they wish to enter the trades, but the panel freezes and have to wait for, say, 30 seconds to know if their trades are executed. It's suspected that the broker waits and sees if the trade is against them. If so, the trade will not be executed. Otherwise they will execute it.

Afer all, the above is not experienced by me, just others experiences. It may be true or false.
 
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