Honest truth about forex.....

Oct 09, 2015 at 20:07
Przeglądane 8,304
180 Replies
Uczestnik z Sep 12, 2015   1948 postów
Nov 09, 2016 at 11:39
One thing I do know from experience is that if a broker has been investigated regularly , they will be on their best behaviour for awhile ,do your research.
"They mistook leverage with genius".
Uczestnik z Mar 25, 2015   74 postów
Nov 09, 2016 at 13:47
snapdragon1970 posted:
One thing I do know from experience is that if a broker has been investigated regularly , they will be on their best behaviour for awhile ,do your research.

Good point, yes, but really 'for awhile'. Some US brokers were fined numerous times by NFA and still do their tricks.
Research should be done on the basis of the licence of the broker - what is it allowed to do with the trades. How many people actually check on the regulator's site the licence of their broker? 😄
Uczestnik z Sep 12, 2015   1948 postów
Nov 09, 2016 at 14:14
RichardBills posted:
snapdragon1970 posted:
One thing I do know from experience is that if a broker has been investigated regularly , they will be on their best behaviour for awhile ,do your research.

Good point, yes, but really 'for awhile'. Some US brokers were fined numerous times by NFA and still do their tricks.
Research should be done on the basis of the licence of the broker - what is it allowed to do with the trades. How many people actually check on the regulator's site the licence of their broker? 😄
It takes them awhile to devise new tricks , the fines are nothing but a slap on the wrist. Corruption is rife in this business.
"They mistook leverage with genius".
Uczestnik z Mar 25, 2015   74 postów
Nov 09, 2016 at 15:57
snapdragon1970 posted:
RichardBills posted:
snapdragon1970 posted:
One thing I do know from experience is that if a broker has been investigated regularly , they will be on their best behaviour for awhile ,do your research.

Good point, yes, but really 'for awhile'. Some US brokers were fined numerous times by NFA and still do their tricks.
Research should be done on the basis of the licence of the broker - what is it allowed to do with the trades. How many people actually check on the regulator's site the licence of their broker? 😄
It takes them awhile to devise new tricks , the fines are nothing but a slap on the wrist. Corruption is rife in this business.

Yeah, no matter in which country, regulators are always one step behind. New tricks can even mean new business models...
Uczestnik z Feb 12, 2016   522 postów
Nov 10, 2016 at 08:35
Great topic everyone and good read I must say 😄 This game is rough. Choosing a broker is one of the most important homeworks to be be done at first. Putting your money in a brokers is already a risk and you are exposed even if no open positions are held. IF a broker goes bust you be the first to lose. The broker has to be big , reputable and regulated. There are too many small scammer brokers. The Black swans are getting even more because of the electronic trading and when they happen , if your broker is not prepared they can easily go broke and you have to say goodbye to your money.
Uczestnik z Dec 11, 2015   1487 postów
Nov 14, 2016 at 10:01
True. Sometimes even the big brokers cannot be trusted though, even when they're regulated, especially if it comes to binary options. Take EZTD, for example. The US Securities and Exchange Commission (SEC) charged the Israel-based binary options and forex broker EZTD Inc. with misleading investors and has ordered it to pay more than $1.7 million. (https://smnweekly.com/2016/11/11/us-sec-fines-binary-options-broker-eztd-1-7-mln-for-misleading-investors/) The broker has lured investors into trading binary options over the Internet without disclosing them the associated risks.

Under such circumstances it's difficult to trust any broker completely.
Uczestnik z Mar 01, 2013   51 postów
Nov 14, 2016 at 11:10 (edytowane Nov 14, 2016 at 11:17)
mlawson71 posted:
True. Sometimes even the big brokers cannot be trusted though, even when they're regulated, especially if it comes to binary options. Take EZTD, for example. The US Securities and Exchange Commission (SEC) charged the Israel-based binary options and forex broker EZTD Inc. with misleading investors and has ordered it to pay more than $1.7 million. (https://smnweekly.com/2016/11/11/us-sec-fines-binary-options-broker-eztd-1-7-mln-for-misleading-investors/) The broker has lured investors into trading binary options over the Internet without disclosing them the associated risks.

Under such circumstances it's difficult to trust any broker completely.

For real. FXCM is 'regulated' but they will wait right before a sell off and as soon as everyone gets ther stoplosses set, FXCM jumps their Ask price up 10x like from 3 pips to 30 pips and shreds everyone's stops....and THEN they drop the Ask price again and let all the algos replace their sell orders then they JUMP the Ask line up again 10x and pop all those orders... THEN they drop Ask back to 3 pips and let algos replace orders again, then Jump up again.... rinse repeat...

you can watch thier Ask line jump from 3 pips to 30 about 10 or 15 times until all accounts blown and/or until the sell off proceeds. Total scam cheating bastards. OH BUT THEY'RE REGULATED. by who? a bunch of crooked friends?




     
Uczestnik z Oct 01, 2015   47 postów
Nov 15, 2016 at 12:10
c3po posted:
mlawson71 posted:
True. Sometimes even the big brokers cannot be trusted though, even when they're regulated, especially if it comes to binary options. Take EZTD, for example. The US Securities and Exchange Commission (SEC) charged the Israel-based binary options and forex broker EZTD Inc. with misleading investors and has ordered it to pay more than $1.7 million. (https://smnweekly.com/2016/11/11/us-sec-fines-binary-options-broker-eztd-1-7-mln-for-misleading-investors/) The broker has lured investors into trading binary options over the Internet without disclosing them the associated risks.

Under such circumstances it's difficult to trust any broker completely.

For real. FXCM is 'regulated' but they will wait right before a sell off and as soon as everyone gets ther stoplosses set, FXCM jumps their Ask price up 10x like from 3 pips to 30 pips and shreds everyone's stops....and THEN they drop the Ask price again and let all the algos replace their sell orders then they JUMP the Ask line up again 10x and pop all those orders... THEN they drop Ask back to 3 pips and let algos replace orders again, then Jump up again.... rinse repeat...

you can watch thier Ask line jump from 3 pips to 30 about 10 or 15 times until all accounts blown and/or until the sell off proceeds. Total scam cheating bastards. OH BUT THEY'RE REGULATED. by who? a bunch of crooked friends?
     

I think this is a classic example of stop hunting. Such things should be recorded and exposed somehow! Seems the fines by the regulators are also not enough...
Uczestnik z Sep 12, 2015   1948 postów
Nov 15, 2016 at 13:02
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.
"They mistook leverage with genius".
Uczestnik z Mar 01, 2013   51 postów
Nov 15, 2016 at 13:32 (edytowane Nov 15, 2016 at 13:42)
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.



Uczestnik z Sep 12, 2015   1948 postów
Nov 15, 2016 at 15:47
c3po posted:
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.
Something to do with the Volcker rule , if you have time to read it,800 pages long.




"They mistook leverage with genius".
Uczestnik z Mar 01, 2013   51 postów
Nov 15, 2016 at 19:56 (edytowane Nov 15, 2016 at 19:57)
snapdragon1970 posted:
c3po posted:
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.
Something to do with the Volcker rule , if you have time to read it,800 pages long.





I dont need to read it to know its total garbage. I wonder if Trump would be so kind as to rip that crap up and let americans play by the same rules the rest of the world plays by. I would like to try plus500 but cant even try them.
Uczestnik z Sep 12, 2015   1948 postów
Nov 15, 2016 at 23:59
c3po posted:
snapdragon1970 posted:
c3po posted:
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.
Something to do with the Volcker rule , if you have time to read it,800 pages long.





I dont need to read it to know its total garbage. I wonder if Trump would be so kind as to rip that crap up and let americans play by the same rules the rest of the world plays by. I would like to try plus500 but cant even try them.
That's true , send him a message on Twitter.
"They mistook leverage with genius".
Uczestnik z Mar 01, 2013   51 postów
Nov 17, 2016 at 11:02 (edytowane Nov 17, 2016 at 11:07)
snapdragon1970 posted:
c3po posted:
snapdragon1970 posted:
c3po posted:
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.
Something to do with the Volcker rule , if you have time to read it,800 pages long.





I dont need to read it to know its total garbage. I wonder if Trump would be so kind as to rip that crap up and let americans play by the same rules the rest of the world plays by. I would like to try plus500 but cant even try them.
That's true , send him a message on Twitter.

Not a bad idea. It could work.
Uczestnik z Aug 12, 2009   272 postów
Nov 20, 2016 at 08:21
c3po posted:
For real. FXCM is 'regulated' but they will wait right before a sell off and as soon as everyone gets ther stoplosses set, FXCM jumps their Ask price up 10x like from 3 pips to 30 pips and shreds everyone's stops....and THEN they drop the Ask price again and let all the algos replace their sell orders then they JUMP the Ask line up again 10x and pop all those orders... THEN they drop Ask back to 3 pips and let algos replace orders again, then Jump up again.... rinse repeat...

you can watch thier Ask line jump from 3 pips to 30 about 10 or 15 times until all accounts blown and/or until the sell off proceeds. Total scam cheating bastards. OH BUT THEY'RE REGULATED. by who? a bunch of crooked friends?

CliveCampbell posted:
I think this is a classic example of stop hunting.

@c3po and @CliveCampbell, FXCM does not hunt stops.

For Standard accounts (5k minimum opening balance) and Active Trader accounts (25k minimum), we use No Dealing Desk (NDD) forex execution. That means each client order is offset one-for-one with the best prices from competing liquidity providers. Therefore, we don't profit from client losses or lose from client profits on the NDD model, and have no reason hunt stops.



Furthermore, it's worth noting that we use the same base price for DD execution on Mini accounts (before adding the spread markup) as the base price we use for our NDD execution (before adding the commission). That's a key reason you can have confidence trading with FXCM regardless of the account type you choose.

FXCM and its affiliates are regulated on 5 continents, so it's important to keep in mind that in compliance with NFA rules regarding price slippage and price re-quoting that were finalized in 2012, FXCM US provides daily trade reports to the NFA which monitors and supervises FXCM US's activity including information on the price where all client orders are filled and the corresponding price where those orders are offset with our liquidity providers.



All of FXCM's global trading entities including FXCM UK and FXCM Australia execute client rolling spot forex transactions as a riskless principal with FXCM US, so the same execution standards are applied for all of our clients worldwide. There are no re-quotes at FXCM, and all our clients around the world can benefit from positive slippage whenever it's available. The latest execution stats from January 2015 through March 2016 showed the following:

* 78.71% of all orders had NO SLIPPAGE.
* 12.77% of all orders received positive slippage.
* 8.52% of all orders received negative slippage.
* 50.2% of all limit and limit entry orders received positive slippage.
* 39.9% of all stop and stop entry orders received negative slippage.

This includes data from both the DD execution we provide to Mini accounts and the NDD execution we provide to Standard and Active Trader accounts. It is FXCM's goal to be an industry leader in providing you with transparency regarding our execution which is why we provide these details on our website: https://www.fxcm.com/uk/why-fxcm/execution/?CMP=SFS-70160000000MusRAAS
Uczestnik z Dec 11, 2015   1487 postów
Nov 21, 2016 at 10:51 (edytowane Nov 21, 2016 at 11:02)
c3po posted:
snapdragon1970 posted:
c3po posted:
snapdragon1970 posted:
One broker I have been using for a few years plus500,no major problems and I always get my money out with no problems.

plus500 doesn't allow US clients because US legislators struck some deal to prevent us.
Something to do with the Volcker rule , if you have time to read it,800 pages long.


I dont need to read it to know its total garbage. I wonder if Trump would be so kind as to rip that crap up and let americans play by the same rules the rest of the world plays by. I would like to try plus500 but cant even try them.

It's not all bad. At least they are going after real frauds with everything they've got (https://smnweekly.com/2016/11/17/us-court-fines-forex-broker-ib-capital-35-4-mln-for-operating-unregistered/). Sometimes I wish other regulators were as vigilant.
Uczestnik z Dec 11, 2015   1487 postów
Nov 21, 2016 at 11:02 (edytowane Nov 21, 2016 at 11:03)
Double post, my apologies.
Uczestnik z Dec 17, 2015   30 postów
Nov 21, 2016 at 15:19
CliveCampbell posted:
c3po posted:
mlawson71 posted:
True. Sometimes even the big brokers cannot be trusted though, even when they're regulated, especially if it comes to binary options. Take EZTD, for example. The US Securities and Exchange Commission (SEC) charged the Israel-based binary options and forex broker EZTD Inc. with misleading investors and has ordered it to pay more than $1.7 million. (https://smnweekly.com/2016/11/11/us-sec-fines-binary-options-broker-eztd-1-7-mln-for-misleading-investors/) The broker has lured investors into trading binary options over the Internet without disclosing them the associated risks.

Under such circumstances it's difficult to trust any broker completely.

For real. FXCM is 'regulated' but they will wait right before a sell off and as soon as everyone gets ther stoplosses set, FXCM jumps their Ask price up 10x like from 3 pips to 30 pips and shreds everyone's stops....and THEN they drop the Ask price again and let all the algos replace their sell orders then they JUMP the Ask line up again 10x and pop all those orders... THEN they drop Ask back to 3 pips and let algos replace orders again, then Jump up again.... rinse repeat...

you can watch thier Ask line jump from 3 pips to 30 about 10 or 15 times until all accounts blown and/or until the sell off proceeds. Total scam cheating bastards. OH BUT THEY'RE REGULATED. by who? a bunch of crooked friends?
     

I think this is a classic example of stop hunting. Such things should be recorded and exposed somehow! Seems the fines by the regulators are also not enough...

I agree with both of you c3po and Clive! Good points and we have to be very careful when selecting or deciding to stay with a broker or not.
Uczestnik z Jan 25, 2016   38 postów
Nov 22, 2016 at 07:35
Parmenides posted:
Charles_F posted:
Parmenides posted:
The honest truth is that 95% of us don't make money. We just keep deluding ourselves that we make money (while we kept our losses secret) and keep refueling our account.

You mean for living, over the long term or at all?

I meant for most of us, we either quit and take up new hobby or we keep refueling the account for another go at it.
We follow simple ideas we found in a book read by countless others and decide to trade it. We might do some backtesting on such idea while ignoring that real trading is more than just about picking numbers on where to buy/sell.There is requote, low liquidity or even black swan events.

If the market efficient theory is true( got massive evidence that the market is at least weakly efficient). It means looking for profit's opportunities is very difficult. And looking for opportunities isnt even the trading part yet.

Got your point. When it comes to the profit opportunities, I think they will always be there for us to take them. But it depends on your perspective tot he markets. FX is close to the ideal competition model in my opinion.
Uczestnik z Aug 12, 2009   272 postów
Nov 23, 2016 at 07:27
Charles_F posted:
Parmenides posted:
Charles_F posted:
Parmenides posted:
The honest truth is that 95% of us don't make money. We just keep deluding ourselves that we make money (while we kept our losses secret) and keep refueling our account.

You mean for living, over the long term or at all?

I meant for most of us, we either quit and take up new hobby or we keep refueling the account for another go at it.
We follow simple ideas we found in a book read by countless others and decide to trade it. We might do some backtesting on such idea while ignoring that real trading is more than just about picking numbers on where to buy/sell.There is requote, low liquidity or even black swan events.

If the market efficient theory is true( got massive evidence that the market is at least weakly efficient). It means looking for profit's opportunities is very difficult. And looking for opportunities isnt even the trading part yet.

Got your point. When it comes to the profit opportunities, I think they will always be there for us to take them. But it depends on your perspective tot he markets. FX is close to the ideal competition model in my opinion.

You make a great point, @Charles_F

While trading is not for everyone, the opportunities do exist. FXCM's guide on the traits of successful traders explains how the minority who make money overall tend apply certain best practices which the majority ignore either due to lack of knowledge or discipline.

For example, open nearly any book on trading and the advice is the same: Cut your losses early and let your profits run. When your trade goes against you, close it out—better to take a small loss early than a big loss later. But how many traders actually put this into practice?

Historically, this simple adage has been difficult to for most people. Take the EUR/USD. Our data show EUR/USD trades closed out at a profit 61% of the time. But the average losing trade was worth 83 pips while the average winner was only 48 pips. Traders lost 70% more on their losing trades than they won on winning trades. Remember that past performance is no indication of future results.

Why the imbalance? Human behavior toward winning and losing can explain. People don't like accepting a loss, so most will hold onto a losing trade for longer than they should. Conversely, they don't let their winners for long enough, because they want to satisfaction of booking even a profit, and fear it will turn into a loss if they hold out for more.

A key trait that sets the profitable minority apart from the losing majority is that profitable traders tend to have winning trades that are at least as big as their losing trades in terms of pips. Of the traders who followed this rule, 53% turned a profit; of those who didn't, only 17% turned
a profit. Traders who adhered to this rule were three times more likely to turn a profit—a substantial difference.
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