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Honest truth about forex.....

Ben (ben08in)
Dec 12 2016 at 14:34
47 postów
@snapdragon1970 So what would you like to say with your last post? That manipulations happen on all levels?

Trade fast, learn fast, never regret!
kieran (snapdragon1970)
Dec 12 2016 at 16:29
1945 postów
ben08in posted:
@snapdragon1970 So what would you like to say with your last post? That manipulations happen on all levels?

You can make your own opinion about that Ben.

"They mistook leverage with genius".
Fredrick (shirley_F)
Dec 14 2016 at 08:00
41 postów
fabritzio posted:
They are definitely very good advice! I'm sure if I had read them before, I would have saved a few headaches. LOL


I read this sentence many times before, maybe because it applies to most of us in our first steps trading 😉

kieran (snapdragon1970)
Dec 15 2016 at 10:54
1945 postów
https://www.sec.gov/comments/s7-30-11/s73011-10.pdf
This is going back awhile, still makes interesting reading.

"They mistook leverage with genius".
PhilipGreek
Dec 15 2016 at 14:58
4 postów
Thanks for the link to the PDF. It is indeed interesting reading

kieran (snapdragon1970)
Dec 15 2016 at 17:09
1945 postów
PhilipGreek posted:
Thanks for the link to the PDF. It is indeed interesting reading

Did you see the bit where it says FX is suppose to be a hedging tool , not an asset.

"They mistook leverage with genius".
terrate
Dec 16 2016 at 08:57
8 postów
shares can be hedging also, so cant says fx is only hedging tool.
but more likely fx is the leverage tool , because we all play fx due to intrument, so not an asset, but every country must have currency, so you can says fx is the necessary things.

Enjoy your Profit and Loss
kmartyn
Jan 02 2017 at 08:36
10 postów
It's been awhile since I've been on here, amazed to see so many opinions on the original post.
Thanks guys for all the kind words. Those of you that had douche comments, thanks for those too.
I don't trade forex much anymore, sticking to stocks. This doesn't mean I won't trade them again in the future.

Frank
RedRhinoFX
Jan 08 2017 at 09:17
395 postów
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.

1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.

2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.

3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.

I hope this helps someone, please feel free to comment.


There is also a world of hurt from slippage, illiquid markets, flash crashes and other market events that spank your butt with little means to protect yourself. Thanks for sharing your story. We all have one, or two!

janettte
Jan 20 2017 at 13:30
30 postów
kmartyn posted:
It's been awhile since I've been on here, amazed to see so many opinions on the original post.
Thanks guys for all the kind words. Those of you that had douche comments, thanks for those too.
I don't trade forex much anymore, sticking to stocks. This doesn't mean I won't trade them again in the future.


Good that you initiated this discussion. I think we all shared and learned a piece of the truth about forex 😉 It is a never ending story, though.

jackwilliams
Feb 08 2017 at 10:54
22 postów
The truth about the forex industry is that it is a very convenient method to trade sitting at your place. All it takes is education, time & practice to excel in forex trading. Lot of people claims this to be the market of scammers, but it’s not true. Though, there are many fraudulent practices also but all are not the same. While choosing a broker always look for the regulations of the broker and only go for the ECN brokers.

Nina (NEEnah)
Feb 09 2017 at 10:54
71 postów
@jackwilliams You are right about the existence of fraudulent practices. Here is a link to a major news I read this week that shows a very good example and brings some light towards the truth in forex industry - https://www.financemagnates.com/forex/brokers/exclusive-nfa-charged-fxcm-using-lp-no-dealing-desk-execution/. It's about a broker using own LP as part of No Dealing Desk execution and the consequences for the broker.

Ben (ben08in)
Feb 10 2017 at 12:39
47 postów
NEEnah posted:
@jackwilliams You are right about the existence of fraudulent practices. Here is a link to a major news I read this week that shows a very good example and brings some light towards the truth in forex industry - https://www.financemagnates.com/forex/brokers/exclusive-nfa-charged-fxcm-using-lp-no-dealing-desk-execution/. It's about a broker using own LP as part of No Dealing Desk execution and the consequences for the broker.


Good point Nina, I also saw some other topics here in the forum discussing this case!

Trade fast, learn fast, never regret!
MC85
Feb 13 2017 at 11:06
48 postów
This was completely unexpected news for me. Very interesting article, thanks for sharing, Nina! 😄

jackwilliams
Feb 13 2017 at 11:12
22 postów
NEEnah posted:
@jackwilliams You are right about the existence of fraudulent practices. Here is a link to a major news I read this week that shows a very good example and brings some light towards the truth in forex industry - https://www.financemagnates.com/forex/brokers/exclusive-nfa-charged-fxcm-using-lp-no-dealing-desk-execution/. It's about a broker using own LP as part of No Dealing Desk execution and the consequences for the broker.


Ohhh thanks! Yea such kind of news led people loose their faith. However, still there are many genuine brokers in the market as exceptions are always there.

Jason Rogers (jasonrogers)
Feb 14 2017 at 08:53
272 postów
Hi Everyone,

While I can't comment on the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. I can also say that Effex Capital is no longer pricing FXCM's NDD forex price feed. It's worth noting that FXCM would not have suffered more than $200 millon dollars in losses during the SNB flash crash had it been taking the other side of client trades – unlike so many of the DD firms in the industry.

Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US.

Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia.

With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year. With this exit, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries including FXCM UK. It's also worth noting that funds held with FXCM UK are insured for up to £50,000 per client by the Financial Services Protection Scheme.

Our full financials can be found here on our IR website: https://bit.ly/ZOCB0Y
We will announce our Q4 and full year 2016 financials in the next few weeks.

I can also discuss with you FXCM's execution practices outside of the US. FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price – including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.

We have made our execution study public in the UK which can be viewed here: https://bit.ly/2di2WEC
It is a transparent comparison of FXCM's actual execution vs top tier futures brokers and the interbank market.

Fredrick (shirley_F)
Feb 14 2017 at 08:53
41 postów
Yeah, that's right! A natural selection of brokers - only the honest and superior will survive 😄

David791 (david791)
Feb 15 2017 at 10:46
44 postów
hjacob
Mar 20 2017 at 11:18
30 postów
Honest truth about forex is that it is not a get rich quick business. In order to make forex your only profession and earn living through it you really need to work hard understanding the market, learning concepts and get experience. This market tests your patience & discipline. However with utmost desire to learn and trade you can surely succeed. Regular practice and learning from one's own mistake help traders the most.

mlawson71
Mar 27 2017 at 11:58
1487 postów
While all business does have scammers, the scams surrounding the Forex and Binary Options industry seem to be more than the “usual” that occurs around other types of business. For example, the European Securities and Markets Authority (ESMA) said recently that the number of financial consumer complaints filed in the first half of 2016 with European National Competent Authorities (NCAs) has grown to 7,026, or up by 36.4% from the previous six months. (https://smnweekly.com/2017/03/24/esma-says-financial-consumer-complaints-in-europe-exceed-7000-in-h1-2016/) That is a lot of complaints.

I think that the combination of a lot of these companies working with little oversight and many of their clients being rookies when it comes to finance has created an atmosphere where scams and unethical business practices are easier to come to fruition, unfortunately.

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