Which platform at FXCM are you talking about anyway? They already state that they take spread on all client trades... If its a request for quote function then of course it makes it a hell of a lot easier for any system to see what your doing before you execute, thus shade the rate one way or another thats not shading its been common practice in the FX markets even when using the phone..... If your trading spot FX you should be using a spot streaming platform where its either fixed spreads or high bro. This means they cannot shade the price at time of execution based on what you want to do...of course if you only open and close positions with one broker then it does also make it easier to keep track of your position and shade the streaming price accordingly. I would suggest having two systems one for opening positions and another for closing...
:eek: Here's an interesting article in today's (4/24/06) NY Post: http://www.nypost.com/business/62797.htm Hey, I personally don't trade currencies, and after hearing everything I've heard about it, I really don't think I want to ... it seems like the retail trader is considered "prey" in that industry. Best, Jimmy
Refcofx really ruined the reputation of entire retail forex industry for sure... I really hope the happy ending with refcofx acct holders...
Thanks for the link to the Post article. The article is worthy of quoting here, particularly for the benefit of any customer of a fx retailer prone to believe what the retailer tells him, directly or through the retailer's agents on boards like ET: _____________________________________________ Gary Gray, who started trading foreign currency on the RefcoFX platform as a way to supplement his retirement income, has $30,000 tied up in his account that he can't touch. "I believe I have been conned by RefcoFX," Gray said. He wrote a letter this week to bankruptcy court Judge Robert Drain pleading for access to his cash. Gray said that before he opened an account at Refco he was assured that his money would be safe. "RefcoFX is committed to offering clients unrivaled retail and institutional execution, easy accessibility, safety of funds," read a pitch he received from RefcoFX last July. After news of the bankruptcy hit, Refco told Gray his funds were safe. "We have our own separate bank accounts from Refco LLC, and in addition, client funds are held in a separate account from our operating funds," a Refco rep wrote him on Oct. 14. "Therefore, please be assured that your funds are in no way affected by this recent news, are held safely with RefcoFX at Bank of America, and are available to trade or withdraw anytime." The frozen accounts reveal how bankruptcies of major financial institutions can affect not only the company's investors but its clients as well. Gail Butler began trading foreign currency with Refco last spring as a way to support herself and her four children after her husband lost his job and had to declare personal bankruptcy. "I can't say that all my financial problems are a result of the collapse of RefcoFX, but I can say that I never expected my problems to be exacerbated by a crooked businessman who makes more in a year than I can dream of making in 20 years," said Butler, who has $50,000 in a frozen account. __________________________________________
Guys, FXCM is King of the Buckets, Currenex is broker dependant meaning whoever gives you the system will determine who / how good of liquidity you will get. Hotspot FX is clean on both systems, retail and institutional. If you are trading 50M at a clip, get real, you're not doing it on FXCM. They have 1/2 pips ono the institutional side and the retail is not against you.
Hey Jimbo, Absolutly correct! The suckers and their money would soon be parted regardless, and that goes as well for the sympathetic mom/daughter picture in your linked article. With Refco going under from their super thief it just happened a little quicker. DON'T trade currencies is the message...And further to that, don't trade commodities or stocks either...the odds are against you and in all likelyhood you will lose. If you put your money on the table, don't think for a minute its safe. And if you never put your money on the table, don't fool yourself into thinking something bad couldn't happen. L
Dont trade currenecies, dont trade commodities, dont trade stocks?....can you tell me why your are on a forum called Elite trader?
I think the message is that one needs to be selective about who they trade with. Certainly it is true that the majority of people who trade these markets lose money and a relatively small number of people make money. I think most active traders understand this and we're clearly willing to take the risk. The Refco situation, however, is a completely separate issue and as tragic as it is it can be avoided. If security of funds is of paramount importance, open an accont with a firm such as Interactive Brokers. By no means are they perfect but you can trade Stocks, currency futures, and forex all through a transparent, fair market place along with having your account insured up to 500k.
How about that with IB idealpro, it's a fair marketplace however the liquidity is only provided by a few banks. When one or two pull their orders not much is left. In extreme conditions I can imagine that one can have a huge problem exiting a position.