What am I missing about GlobalFX?

[trdr_2000]

You can open an account with $2500 and get access to the interbank market, access to all their research etc.

What am I missing?

It sounds like the best deal out there to me so somebody tell me why it isn't.

 

[trdr_2000]

Anyone have anyting negative to say about this group?



Bueller, Bueller, anyone?

 

[master718]

The negative thing is they charge $500 a month if you want to trade at their office and they are an introducing broker for FXCM which has a pretty crappy system.

 

[trdr_2000]

Are their spreads better than trading through a regular market makign firm?


What i find disturbing is that as soon as you enter a trade you are immediatly down 6 pips which is no good if you are daytrading.

 

[damir00]

Quote from trdr_2000:

What am I missing?

there is really only one question you need answered: how do they make their coin? once you know that, you know everything...

 

[TRADERguy]

Quote from trdr_2000:

You can open an account with $2500 and get access to the interbank market, access to all their research etc.

What am I missing?

It sounds like the best deal out there to me so somebody tell me why it isn't.

If you live in NYC and want to trade retail forex (FXCM) with your own funds in an office setting then this might be worth it because you get Bloomberg. Other than that they don't offer much. Their matched funding program really just doubles your leverage because your funds are at risk before their funds are and they will never the account dip into their funds. They also charge you 1/5 of a pip on top of the spread for the matched funds. Their prop traders trade with accounts of $200 to $10,000 which is ridiculously small. There are many futures trading prop firms where you can trade currency futures that will let you trade many times this size. They also push scalping and yes you pay the the full spread that FXCM charges. Global FX basically makes their money by getting a kickback from FXCM every time you trade plus what they take from their matched traders.

 

[trdr_2000]

I thought i read on their webpage that they gave you interbank mkt access but that's not the case.

Seems to me like the FX market is a scam unless you hold long enough to where paying the spread doesn't matter in the big picture.

Looks like a good trade but I don't want to join a rigged game.

 

[TRADERguy]

Quote from trdr_2000:

Seems to me like the FX market is a scam unless you hold long enough to where paying the spread doesn't matter in the big picture.

Looks like a good trade but I don't want to join a rigged game.

You might want to look into CME currency futures; its a fair market where your broker does not take the other side of your trade.

 

[trdr_2000]

I"m a CME member and wanted to avoid trading the eurofx products but it looks like i"m not gonna have a choice.

I may jump into some spot fx trading at some point after I see how the futures go.

Thanks to everyone for all your help.

 

[TradingWise]

Quote from trdr_2000:

Seems to me like the FX market is a scam unless you hold long enough to where paying the spread doesn't matter in the big picture.

Looks like a good trade but I don't want to join a rigged game.

Why is everybody complaining about the spread?? Oke, absolute it is still high, and yes, it will probably get lower in the future. But the current spread is very low relative to the range of the marketmoves. If you know how to catch a trend, this spread is nothing.

Maybe it isn't perfect for people placing many, many trades a day, but for everybody else it is good enough.