FXCM makes its money from people coming in and blowing up their accounts. They don't make their money on the "spread". FXCM only makes money when its clients fail.
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Shame On Fxcm
- Thread starter jmoris
- Start date
FXCM makes its money from people coming in and blowing up their accounts. They don't make their money on the "spread". FXCM only makes money when its clients fail.
Jmoris,
Switch To IB for Forex.
They have a lot more order types for Forex.
Spreads are .5 to 2 pips. (You can trade an profit off 1 pip.)
You only pay a commision per side, not a spread. Commision is min $2.50 or (.00002 * value of currency * amount traded.) Ex. Buy 500,000 Euros @ 1.2675. Commission = .00002 * 500,000 * 1.2675 = $12.68 per side.
Plus your account is SIPC insured.
And they pay high rate of interest on your money over $10,000.
http://interactivebrokers.com/en/main.php
Switch To IB for Forex.
They have a lot more order types for Forex.
Spreads are .5 to 2 pips. (You can trade an profit off 1 pip.)
You only pay a commision per side, not a spread. Commision is min $2.50 or (.00002 * value of currency * amount traded.) Ex. Buy 500,000 Euros @ 1.2675. Commission = .00002 * 500,000 * 1.2675 = $12.68 per side.
Plus your account is SIPC insured.
And they pay high rate of interest on your money over $10,000.
http://interactivebrokers.com/en/main.php
you have no clue what you are talking about ...Quote from ddunbar:
Well, I'm looking at the EuroFX and the Eur/USD Spot right now. They don't seem to tcik the same to me. Plus the futures has a 35+ pip premium over the Spot. Though, if you trade with IB, the margin for the Futures and Spot is basically the same. But that'll change sometime next month when IB lowers their margin. I'm guessing that they'll go from 50:1 to 100:1 or more.
I haven't had a problem with actual trades in FOREX. And when Reuters and CME start that new centralized "exchange" next year, it'll be even better.
Spot Forex is where it's at, IMO.
If you think about it, FXCM and friends basically own unregulated casinos. Only people that don't know what they are doing use the bucket shops. Since these people don't know what they are doing they lose. FXCM, just like a casino, is on the opposite side of every trade. The client's pain is FXCM's gain.
I agree 100%
Ok so is the CME FX Futures the only solution to legal and fare market
Please with all due respect don't post other FX Market Makers because a lot of them are worse then FXCM , they are smaller and cant afford as much as FXCM can , and even if they are bigger , their business model is the same as FXCM .
Client looses - they make money
At the end of the day - All Market Makers are praying for you to loose in order for them to stay in business .
What's the solution ?
Ok so is the CME FX Futures the only solution to legal and fare market
Please with all due respect don't post other FX Market Makers because a lot of them are worse then FXCM , they are smaller and cant afford as much as FXCM can , and even if they are bigger , their business model is the same as FXCM .
Client looses - they make money
At the end of the day - All Market Makers are praying for you to loose in order for them to stay in business .
What's the solution ?
Well, I'm looking at the EuroFX and the Eur/USD Spot right now. They don't seem to tcik the same to me. Plus the futures has a 35+ pip premium over the Spot. Though, if you trade with IB, the margin for the Futures and Spot is basically the same. But that'll change sometime next month when IB lowers their margin. I'm guessing that they'll go from 50:1 to 100:1 or more.
I haven't had a problem with actual trades in FOREX. And when Reuters and CME start that new centralized "exchange" next year, it'll be even better.
Spot Forex is where it's at, IMO.
Hi Ddunbar,
I said they tick the same, not that their value is the same. There is a premium in price, but we as traders do not really care about it because they move in unison. Take any indicator and put it on both, and you will see that it will look the same. Make sure you do it on charting platform like e-signal or something like this, and not your
broker whose prices could be different.
Can you please explain to me why you would choose forex over futures? Futures are cheaper and they are centralized. They move about the same, and you are not exposed to your broker. I am not sure how good IB is in forex, but there is a really good forex MM - Oanda. But it just makes more sense to trade futures. I started trading forex in 2004, but I go where I have less risk and same opportunities. If it was more risk more opportunities, then I might consider it, but with all other things being equal, I choose a less risky and cheaper option.
Regards,
redduke
Quote from jmoris:
I agree 100%
Ok so is the CME FX Futures the only solution to legal and fare market
Please with all due respect don't post other FX Market Makers because a lot of them are worse then FXCM , they are smaller and cant afford as much as FXCM can , and even if they are bigger , their business model is the same as FXCM .
Client looses - they make money
At the end of the day - All Market Makers are praying for you to loose in order for them to stay in business .
What's the solution ?
IB's not a market maker in truth. They're more an ECN.
well someone explained it allready: they move in unison and the 35 pip premium is caused by intrest-rate differentials over the remaining period the future will exist, it changes on day to day basis, just as it would if you held a forex position overnight, only futures will be cheaper to do it ... it's basic finance math ...Quote from ddunbar:
(I hate it when posters do that.)
So, then clue me in. I don't pretend to be a know it all. I simply gave you my observation.