Stay away from SAXO

rhymeswithorang · Jan 10, 2006

Why would anybody trade at Saxo or Oanda anyway and not use the CME contracts, just curious? Incidentally, there is a new euro ETF coming out.

ZoneTrooper · Jan 10, 2006

Quote from Eagle Eye:

You saying refco does, did you not have any luck claiming under insurance cover?

www.refco.ca does, but they won't accept US customers.

During the whole REFCO mess, REFCOCA customers were not affected as far I know.

Only REFCO US customers were affected.

Makes me want to take up Canadian Citizenship.

Also, there is another company that I posted before that is Just Like REFCOCA, but they to will not accept US customers.

So basically, if you are a US Citizen, you have to go without being insured, and your only reliance in that the dealer you are dealing with cares about the small fines that CFTC or NFA might levy against them.

Eagle Eye · Jan 10, 2006

Quote from rhymeswithorang:

Why would anybody trade at Saxo or Oanda anyway and not use the CME contracts, just curious? Incidentally, there is a new euro ETF coming out.

Can you give more info on CME contracts, how does it work?

rhymeswithorang · Jan 10, 2006

http://www.cme.com/edu/fx/tradingfx/tradefxfuture11837.html

they've got a mini contract too, I don't get why anybody would attempt to trade cash FX through anybody on the web. Can somebody enlighten me?

Chood · Jan 10, 2006

Quote from rhymeswithorang:

. . . I don't get why anybody would... category -- now wizened (and poorer for it).

jimrockford · Jan 10, 2006

Quote from Eagle Eye:

I was thinking to open an account with IB but after my experience with Saxo, I am quite hesitant, I think I might need cooling off period and may be then join IB.

I highly recommend cooling off. It is very important to proceed rationally, taking things as an educational process, rather than succumbing to gambling fevers. I would also recommend that you begin to learn about trading in the stock market, not the FX market. FX is only for the sophisticated.

jimrockford · Jan 10, 2006

Quote from Chood:

Various reasons, not one of which commends itself to any experienced, resourceful trader. 12 year olds betting their lunch money and allowances, college students, experienced traders in reduced circumstances, and those simply taken with the notion that they are trading currencies, which is incorrect because, in fact, they only are betting on quotes pushed to their PCs by the fx retailers (to the extent the retailers honor the quotes, that is) -- these are some profiles of the retailers' customer base. The customers' reasons are evident from the descriptions.

There's at least one other group of retailer customers. That is the trader who, despite experience and means, nonetheless risks his money with a fx retailer because he successfully tested the retailer's platform and came to believe, on that basis, that the game is reasonably honest. I fall into that category -- now wizened (and poorer for it).

Testify, Chood!

rhymeswithorang · Jan 10, 2006

thats pretty much what I figured, thank you

Eagle Eye · Jan 10, 2006

Quote from jimrockford:

I highly recommend cooling off. It is very important to proceed rationally, taking things as an educational process, rather than succumbing to gambling fevers. I would also recommend that you begin to learn about trading in the stock market, not the FX market. FX is only for the sophisticated.

Yes it is true, except of Fx been for only sophisticated, I highly doubt that ! May be you wish to amplify on that point.

jimrockford · Jan 11, 2006

Quote from Eagle Eye:

Yes it is true, except of Fx been for only sophisticated, I highly doubt that ! May be you wish to amplify on that point.

The stock market is a competitive auction market, regulated in many respects, so that there are many types of protection for inexperienced traders. The reason you see so much promotion of FX trading is because the regulation of FX trading is far weaker than with other types of trading. This makes it easier for FX brokers to find new customer-meat and devour it. Why was Willie Sutton said to have robbed banks? "Because that's where the money is." Inexperienced traders need to learn the basics of how competitive auction markets work, which they cannot learn by trading with most FX brokers, since most FX brokers do not offer trading in a competitive auction market. New traders should get their feet wet in the more protected and more regulated environment of the stock market. They will, in the stock market, also enjoy the protection of SIPC deposit insurance, in case the broker goes out of business. If an FX broker goes out of business (other than Interactive Brokers which does give SIPC protection), then the customer can lose all his money. Another problem with FX trading is that inexperienced traders sometimes trade so poorly, that they lose far more than their deposit, and end up with a big surprise of owing large sums to their FX broker, who can sue their customers and take their assets and garnish their wages.