Is FXTrader.com legit??

L

learningFX

I'm wondering if anyone has had any experience with these guys. They're advertising 400:1 margin, 2 pip spreads, and hedging. Anyone know if they're a decent broker or another in a list of too-good-to-be-true scam artists?

I'm looking for a good place to open an account.
 
Quote from learningFX:

I'm wondering if anyone has had any experience with these guys. They're advertising 400:1 margin, 2 pip spreads, and hedging. Anyone know if they're a decent broker or another in a list of too-good-to-be-true scam artists?

I'm looking for a good place to open an account.
More...

Do you mean fxtrader.net?
 
More information about <b?FXTrader.com</>

They are a part of Russian mafia group, they denied it before:


www.itgforex.ru

*********************************************
From : <support@fxtrader.net>
Sent : Thursday, May 11, 2006 5:30 PM
To : <brussel@hotmail.com>
Subject : account

| | | Inbox

Dear, Client

Most traders experience some difficulties over the last few weeks with a lot of
interruption in our services and slow accounting services...


If you have any technical related query please send details to us:
support@fxtrader.net


Happy Trading!

FXTrader.net The professional forex trader

(FXTrader is part of the ITG Forex Group of companies)


-------------------------------------------------------------------------------------
Please allow 24 48 hours for answers to emails.
 
FXTrader.net were regulated by FSB. They lost their licence, because of serious financial problems and scandals.

Now they offer $50 minimum account and 1000: leverage.
They must be desperate!
 
Don't be lured in by high leverage and commission free trading. Usually indicative of a "bucket shop."

You best bet is to deal with a brokerage that has set itself up as an ECN. (Instead of being a market maker which trades against you, AN ECN simply routes your orders to a liquidity provider Bank like UBS, JPmorgchase, Deutsche bank, etc. for a small fee.)

You seem to want to go in with a small account. In that case, try:

MB trading - you'll have to go to their webiste for stats.

Interactive brokers(IB). Commission min $2.50/side. .00002 or 2/10th of a pip. Min trade size $25,000. Leverage 50:1.

You can also try Oanda which is a market maker (they act as counterparty to your trades meaning, they trade against you.) They're pretty good and they are commission free. This is one of the best market makers for small traders.

But I would recommend IB if you are opening an account >$2000
 
Oanda definately does not trade against its clients, they hedge all net exposure on the market.

ECN seems to be the new buzzword, however it doesn't offer anything that Oanda traders wouldn't have had since 2001.
 
Quote from learningFX:

I'm wondering if anyone has had any experience with these guys. They're advertising 400:1 margin, 2 pip spreads, and hedging. Anyone know if they're a decent broker or another in a list of too-good-to-be-true scam artists?

I'm looking for a good place to open an account.
More...

Give your money to me, at least I’ll be drinking every time in your name. While these guys will forget you in no time.
 
Quote from bl33p:

Oanda definately does not trade against its clients, they hedge all net exposure on the market.
More...

Which is still trading against the client. Trading against the client is simply acting as a counterparty. So, no matter what, the conflict of interest is ever present. That doesn't mean that Oanda is actively engaged it screwing over their customers like nearly all the other no commission market makers. Oanda happens to be one of if not the best retail market maker out there.

ECN seems to be the new buzzword, however it doesn't offer anything that Oanda traders wouldn't have had since 2001.
More...

Actually, it does. ECNs remove the conflict of interest of having to act as a counterpraty to client orders and simply lets the liquidity providers act as counter party. The way it should be and the direction the forex market will evolve. ECNs also offer more realistic transparency and in some cases, anonimity. In theory, an ECN can offer deeper liquidity since they don't have to worry about hedging or trading against their clients. They simply pass the order on directly to the liquidity provider. So you could also say that ECN's offer better executions. That much seems to be the consensus anyway - that the ECN style FOREX broker's executions tend to be better because there's less of a process involved with any given trade (No hedging or other risk management techiques, and no profiting off the spread).

But at the end of the day, I still like OANDA but prefer an ECN. Especially Interactive brokers for the many order types they have, account protection, deep liquidity (UBS and Duetsche bank are among their liquidity providers), market depth, instant executions, high rate of interest paid... the list goes on. If I outgrow IB, (dare to dream), next step up is currenEx, Lava, or FXall..
 
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