Retail Forex: A dirty little secret?

Good day all....

very interesting subject to discuss... after spending 2 years with my accounts with market makers, I can make you all sure they are just scraps!!

before jumping in to the spreads issue, there is a more important thing that a trader should be concerned about with his backbone broker, TRANSPARENCY OF ORDERS!! market makers almost got logs of their clients orders, and most of them automatically hedges their clients positions!!!

another interesting idea is the price SPIKES at the news time .... huh, just a couple of hours ago, i noted a price spike in the quotes coming from a market maker, that i couldnt see anywhere else!!!

anyway, now am working with COESfx, so far so great, when it comes to the stabilty, order filling, quotes, ....etc

at one moment i traded a ZERO spread with them!!!!

But to be all frank, I think the commission paid is relatively high!! 40$ for a rould trip!! 20 for in and 20 for out.

minimum account size is 5000$, minimum lot size is 100,000$, NO MINI.

Frankly speaking they are all great, specially at the time of news!!!!

I think everyone should be trading using an ECN model broker, cuz simply market makers are there only to make the most of US!!!

sorry for this long reply ....

good trades for all ....
 
Quote from pips it:

at one moment i traded a ZERO spread with them!!!!
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What do you mean? is Bid the SAME as the Ask? (that is possible on an ECN but unlikely to stay for long)..
 
sure, i was about to close my position at that moment i saw the zero spread on the eur/usd, and been lucky to catch it.... no big deal about it actually, eventually i was concerned about my exit price and gladly i got it!!

but please know, that a zero spread is TRADABLE!!
 
Quote from pips it:

sure, i was about to close my position at that moment i saw the zero spread on the eur/usd, and been lucky to catch it.... no big deal about it actually, eventually i was concerned about my exit price and gladly i got it!!

but please know, that a zero spread is TRADABLE!!
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Interesting....It's possible because the MM's on the ECN may not trade against eachother (only quote and trade when the real-clients take their offers). So when one MM has a Bid on price-x and on the same time another MM has an Ask on price-x...you will see a zero-spread (and can trade it).
 
It is not possible to make a reasonable comparison between a multiple market-maker, fair ECN model, like Interactive Brokers, against the single-market maker, bucketshop model, by looking at spreads and commissions. This is because bucketshops display spreads which deceptively make trading look much less expensive than it really is at a bucketshop. Spreads don't include all the extra hidden costs of bucketshop trading, which include things like shading, individualized pricing, re-quoting, freezing, stop-running, slippage, manual-quoting, excessive platform failures during critical statistical releases, anti-arbitrage rules, anti-scalping rules, lack of deposit insurance, unfair interest rate policies, trade-busting, etc., etc., etc.

Neither myself, nor the various IB employees who promote IB's fair ECN model, nor the various experienced EliteTrader traders who agree with us about the ECN model, make any effort to disguise our identities or are motives. But much of the information posted on EliteTrader, in favor of bucketshops, comes from bucketshop employees who pretend to be satisfied bucketshop customers, or newbies asking questions to provide a setup for response by other bucketshop employees also speaking through concealed identities. IB has a long history of honesty and integrity in its marketing, while many bucketshops have been fined or closed for cheating traders in both actual trades and in fraudulent advertising and marketing; and some of them have been proven to use criminals, convicted felons, and people banned from the futures industry for previous regulatory violations.

It is true that I have not traded FX, but I have traded other vehicles, and learned enough about trading generally, so that others who do trade FX tell me they do benefit from reading my commentary about controlling trading costs and risks.
 
As far as I can see whether it is SAxo or any other bucketshop or ECNs like IB, Coesfx,hotspot etc or any other RETAIL FX are the same in that neither of them has a single term favoring clients it is far unbalanced terms protecting themselves.

It is true that the courts have powers to to amend, remove, or interpret terms in way they ought to be, but the question is whether individual who has been subject to unfair practices would pay more money to go to court and have a battle that could last long enough and possibly lose !!!

So I guess most of you here are right suggesting that you have to rely on integrity and honesty of the broker in question.
As far as I can see that is not enough protection.

So I wont consider retailFX until may be in future when I will see some tight laws controlling the industry!!!
 
I was browsing MBT web site, just downloaded their platform, I dont know they look fine really, I wonder if any has an experience with them!!?

The good news is that they are like COESfx, BOTH DONT HAVE A DEALING DESK!!

and for me thats a big deal!!
 
Are you a futures industry person?



Quote from jimrockford:

It is not possible to make a reasonable comparison between a multiple market-maker, fair ECN model, like Interactive Brokers, against the single-market maker, bucketshop model, by looking at spreads and commissions. This is because bucketshops display spreads which deceptively make trading look much less expensive than it really is at a bucketshop. Spreads don't include all the extra hidden costs of bucketshop trading, which include things like shading, individualized pricing, re-quoting, freezing, stop-running, slippage, manual-quoting, excessive platform failures during critical statistical releases, anti-arbitrage rules, anti-scalping rules, lack of deposit insurance, unfair interest rate policies, trade-busting, etc., etc., etc.

Neither myself, nor the various IB employees who promote IB's fair ECN model, nor the various experienced EliteTrader traders who agree with us about the ECN model, make any effort to disguise our identities or are motives. But much of the information posted on EliteTrader, in favor of bucketshops, comes from bucketshop employees who pretend to be satisfied bucketshop customers, or newbies asking questions to provide a setup for response by other bucketshop employees also speaking through concealed identities. IB has a long history of honesty and integrity in its marketing, while many bucketshops have been fined or closed for cheating traders in both actual trades and in fraudulent advertising and marketing; and some of them have been proven to use criminals, convicted felons, and people banned from the futures industry for previous regulatory violations.

It is true that I have not traded FX, but I have traded other vehicles, and learned enough about trading generally, so that others who do trade FX tell me they do benefit from reading my commentary about controlling trading costs and risks.
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