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Author Topic: Broker Quanundrum  (Read 6478 times)

Offline mike348

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Broker Quanundrum
« on: May 07, 2009, 12:12:11 PM »
It would appear that finding a consistently good broker is like finding the holy grail. it appears that whether or not a broker says it is registered or regulated with any trade or governmental body, they are in fact almost totally unregulated - in fact the wild west of trading. They can set and manipulate their price feeds and spreads as they wish and regularly set out to take out stops placed.
They all have the EA's on the market and know exactly traders risks taken, stops and likely reactions to market moves. I have seen that demo accounts are purely marketing gimmicks to entice members - I believe Alpari UK ensure their demo is 2 pips better than actuality. I have also discovered that fixed narrow pips is offeset by the dealing desk (if they say they don't have one its done by the software gateway between the broker and liquidity providers) to ensure the quoted price is favourable to them. It seems to that the few now offering ECN feeds doesn't necessarily mean less manipulated pricing.
I would love to be able to get a Reutors subscription to get a clean price feed if only to compare with what the brokers make up! Insiders have told me that the 'holy grail' would be a trading account with the CME, which is 'the' source of real/pure fx prices and also the only place that provides fully segregated client accounts. Looking at their website does show fx spot and futures in some detail but nothing on accounts for the man in the street or metatrader links etc. My email enquiries can't get through their firewall. Maybe its something others can explore further.

Next to that I can only think of continuing my search for a more professional ECN broker that can provide good pricing. Maybe MB Trading will once it irons out its metarader bridge issues this year. If anyone has any thoughts or ideas I am sure it would be of general interest here.

Michael     

Offline admin

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Re: Broker Quanundrum
« Reply #1 on: May 07, 2009, 12:41:15 PM »
dukascopy is just about THE best broker accessible to ordinary folk and has a great reputation amongst pro traders. You need $50,000 to open an account though. Oh, and no metatrader, you'd have to get a bridge programmed, but still very possible.

On the other end of the spectrum, i'm doing a "hit and run" jobby on a dodgy broker right now, here are my stats: http://donnaforexhr.mt4stats.com Just a bit of fun trading at extreme risk. I wonder if they will pay out? Or if i will go bust before i get to payout stage? hehe. This broker has miraculous fixed spreads of 3 pips on EURGBP and 4 pips on EURCHF. What a great deal. I won't name them because i don't want others flocking to them if they do indeed turn out to be a proper scam. Let's wait and see if they pay out, hehe.
« Last Edit: May 07, 2009, 12:44:26 PM by admin »
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Offline redrag

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Re: Broker Quanundrum
« Reply #2 on: May 07, 2009, 05:40:29 PM »
Ulp!! Donna

I have live accounts with a couple of brokers who offer spreads similar to what you mentioned and i'm now starting to panic. I took the precaution of checking them out at Forex Peace Army and Compareforexbrokers.com.

Am i being naive?

.......and what settings did you use? - because i LOST money last night.

Paul
« Last Edit: May 07, 2009, 05:43:24 PM by redrag »

Offline admin

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Re: Broker Quanundrum
« Reply #3 on: May 07, 2009, 06:46:10 PM »
It is something you need to be careful about and watchful for if you are trading with a broker who has amazing terms and conditions. This particular broker i signed up with didn't even ask for any identification from me so far, which is most strange i have to say. It doesn't mean they are a scam, but the alert should be on. By all means take advantage of the great spreads but don't deposit huge sums of cash with them, if you do deposit do it via credit card (but PAY IT OFF straight away! NEVER get into debt to raise trading capital!) if you can as it offers you the most protection, and as soon as you can, you should withdraw your initial deposit. Once you have your initial deposit back you are basically 'trading free' so it is not quite so important, although still your money at stake- it doesn't feel so bad somehow.

Some of these small "brokers" will ban your account if you start making too much, that is the more ethical ones that do that. The ones that aren't will just let you keep trading but not give you any money back. Hence the need to stay sharp and try to move one step ahead of them.
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Offline civfan

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Re: Broker Quanundrum
« Reply #4 on: May 07, 2009, 10:46:40 PM »
On the other end of the spectrum, i'm doing a "hit and run" jobby on a dodgy broker right now, here are my stats: http://donnaforexhr.mt4stats.com Just a bit of fun trading at extreme risk. (..) I won't name them because i don't want others flocking to them if they do indeed turn out to be a proper scam.

Well, in my condition of FX newbie, I guess it will not harm to say that my bet for the dodgy broker you are using are this one: pronetfx ...  ;D  would I be right? :D
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Offline admin

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Re: Broker Quanundrum
« Reply #5 on: May 07, 2009, 11:37:09 PM »
no that's not right, hehe. guess again.
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Offline islandTrader

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Re: Broker Quanundrum
« Reply #6 on: May 08, 2009, 02:34:55 AM »
So question to Donna: Are you saying that your acct will be banned if you start making money even on major brokers like Alpari and other brokers like the one that requires 50k to start?  So I guess the question is this... if there aren't any brokers that allow you to make substantial money, how do people make money in Forex in reasonable amounts to make a living?  For example, a 50k account that is generating 3k per month would not be generally easy to find in a broker?

Offline admin

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Re: Broker Quanundrum
« Reply #7 on: May 08, 2009, 06:22:43 AM »
So question to Donna: Are you saying that your acct will be banned if you start making money even on major brokers like Alpari and other brokers like the one that requires 50k to start?  So I guess the question is this... if there aren't any brokers that allow you to make substantial money, how do people make money in Forex in reasonable amounts to make a living?  For example, a 50k account that is generating 3k per month would not be generally easy to find in a broker?


No i don't think Alpari would ban you ;-) i have experience of making profit with them. I was referring to some of the small brokers which do not manage their clients trades at all, have no risk offsetting procedure, and always make money when their client loses. For a 'real' broker, a big institutional/semi-institutional broker like Dukascopy, along with other "true" ECN brokers (i.e. not just pretending to be ECN) a continually losing client is no use, they do not get much return from these clients since their profit comes from the commissions on a trade. It is in these broker's best interests to do everything they can to facilitate their client's trading so that the account grows larger and the client trades in larger lot sizes and hence brings in more commission.

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Offline civfan

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Re: Broker Quanundrum
« Reply #8 on: May 08, 2009, 07:58:45 AM »
I take a look in the dukascopy site right now and the eurgbp spread is 1 pip!? uah!  :o

"EUR/GBP   
0.89180
0.89190
125.9"
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Offline admin

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Re: Broker Quanundrum
« Reply #9 on: May 08, 2009, 08:04:18 AM »
Yes, now that is what i call a real ECN :D It is because you are cutting out some middlemen who always add their fee onto the spread, e.g. an STP broker (a form of ECN which is not a 'true' ECN) will use any number of liquidity pools available to them, like using other brokers liquidity, which necessarily has a premium built into the quote they provide. STP ECN is not all it seems, it is a real eye opener seeing spreads this low when you didn't think it was possible :-).
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Offline redrag

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Re: Broker Quanundrum
« Reply #10 on: May 08, 2009, 08:49:10 AM »
The "offshore" brokers (eg in British Virgin Islands, Seychelles, Cyprus, etc.) have lower overheads than those in the UK or US. I guess (hope!) this is why they are able to offer lower spreads. Blind faith??

Donna, your broker, GTL, or Lite Forex (SIG), or Insta, or FXOpen, or TadawulFX?? Any views?

Paul

Offline mike348

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Re: Broker Quanundrum
« Reply #11 on: May 08, 2009, 09:50:31 AM »
Donna,

I did take a look at Dukascopy the other week, but was put off by the lack of metatrader link. That apart I did like their offering and would consider it for my manual trading.

However they are not regulated to do business in Switzerland (www.finma.ch). They have applied for a banking licence; but if that fails there will be problems. Some in the industry say it has a great business model but there has been a comment that their business model isnt what it appears to people on the outside - whatever that means.




 

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