Blacklisted by Brokers

Discussion in 'Professional Trading' started by thomsonfx, Jun 22, 2006.

  1. This is the thread I retrieved from old elitetrader:
    http://www.elitetrader.com/vb/printthread.php?threadid=52276
    and one in another forum
    http://www.forexfactory.com/forexforum/showthread.php?p=7920
    talking about the dirty trick from the brokers

    In short, it is very likely to be blacklisted if
    1. open and close your trades within 2 minutes frequently
    2. always trade in the data release times like non-farm payroll

    OldTrader:
    From Wikipedai, http://en.wikipedia.org/wiki/Foreign_exchange_market#Retail_Forex_Brokers
    "Forex futures volume has grown rapidly in recent years, but only accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20)." I think for retail clients they cant afford the min capital req, the large trading size or the high commissions from the exchange, thatz why FX futures account for only 7% out of all trades?

    Jayford:
    I have heard that banks can also blacklist certain clients and ask the brokers not to accept any orders from them, I would like to know when the broker route the orders to bank, does it contain the client ID ? or the broker aggregate all the orders and send to banks ?
     
    #11     Jun 23, 2006
  2. zoo

    zoo

    Good useful information, but why would a broker care if we win or lose? They are making commissions off us either way. Are these not legit brokers that ban people for winning or scalping the market? I can't see why they would ban a client. Is this rule just for forex? Or does it apply for stocks too? So will cybertrader ban us for scalping level 2 quotes with inet every 30 seconds or only trading the data release times? I never heard of a broker banning a client. But I never traded forex either - only stocks.
     
    #12     Jun 23, 2006
  3. Steve_IB

    Steve_IB Interactive Brokers

    You can do all this with IB. IB does not artificially widen the spread. We make our money from a small commission charge on each order. In fact, if you make money then we should make more money by you increasing your trading volume.

    As for triangular arbitrage. Don't fool yourself. These are major banks providing the liquidity, and they know how to price a market. They aren't going to give you free money. Most of the "golden" triangular arbitrage opportunities that are touted on the forums - do not actually exist. The posters usually do not take into account the interest differentials and relevant country holidays.
     
    #13     Jun 23, 2006
  4. This is a story from 1K to 1M in 18 months

    http://www.forexfactory.com/forexforum/showthread.php?t=5742&highlight=smjones

    which is equivalent to 46.8% in one month
    or 2-3% with 80-90% success rate.

    Seems starting from 1M brokers will act against you seriously.. Fine.. I am satisfied with 1M.. by that time I change my mode of trading with other things else...

    Or do the same with other brokers where I can get another 1M

    Then I end up with dozens of M

    Can retire already.. sorry dreaming
    :D
     
    #14     Jun 23, 2006
  5. Adobian

    Adobian

    #15     Jun 23, 2006
  6. zoo

    zoo

    #16     Jun 23, 2006
  7. sccz97

    sccz97

    Ideal Pro is great for forex apart from when the mkt gets volatile
     
    #17     Jun 23, 2006
  8. #18     Jun 23, 2006
  9. "From: G. R. Fort lauderdale, Florida
    Rating:
    Date of Post: 02/21/06
    Review: I traded with Oanda in 2004 to 2005. They closed my account and received a personal email and phone call from what turned out to be there CEO. They said if I wanted to keep trading on their system I would have to hold trades for at least 5 minutes. Guess they did not like my big quick profits during the news. "

    A proof that trading with the news is not allowed.

    I have also ever got a single trade on NFP with 80% capital increase with 50% of capital for the trade.. for just half a minute. I did that with FXCM last nov/dec. But then it doesnt work for the following months and soon FXCM not allow to place orders around the data release times.
     
    #19     Jun 23, 2006
  10. sccz97

    sccz97


    I'll be honest with you ... you've seen the responses and threads on other forums and yet you still want to pursue this. Your time might be better spent elsewhere in the things I have mentioned in my pm to you previously.
     
    #20     Jun 23, 2006