Good information. Thanks for sharing. I never traded FX markets. I never heard of any E-mini broker not allowing customers to trade near news releases or for holding contracts for under 2 minutes. Is this just a FX problem? Or a stock and E-mini broker problem also?
if you're trading on an exchange and your brokers is routing the order direct to the exchange .. there's absoultey no reason why they would want to disallow orders when the mkt is volatile
Anyone who trades retail FX is freakin' idiot who is only trading to satiate his appetite for failure. Flame me all you want. I worked for FXCM when I first moved to NYC 5 years ago and only saw one person make money. Do you really swallow the TA horeshit pill that these firm shove down your throat? SUUUURE, if FXCM tells me that this indicator works, then it must.
Simplified version, they take the spread. You are not going to buy the bid, or sell the offer unless they (the broker) see that the market is bidding up, or visa versa. They also have no incentive to give you a better price than you ask for. A commission broker will give you the best price possible via their liquidity providers (banks). Not getting filled at all is often the worst case scenario. Much more common if the broker is earning cash off the spread. Just for fun, if you have IB, run Ideal Pro quotes vs FXCM. IB will almost always lead by 2 to 10 seconds. There is a reason for this! And no, you can't use this to your advantage to arb with FXCM as you won't ever get filled.
If people on ET used any "common sense" at all, there'd be 1/10 the number of asinine threads here. A dealer is a bookie. Period. You're not trading the FX market, you're betting with the SAME GUY on each trade. If they've "laid off" your trade, i.e. you pay 29 to a dealer and they "hedge" by buying 28's from a bank, then they could care less if you make money. As long as the $ doesn't come out of their pocket. If one is so good that you're catching turns on news or breakouts, trades that are unhedgable to a dealer, you're going to get bounced. The same way the bookmaker at the barber shop doesn't need a guy who bets 2k a pop on football right before kickoff and consistently wins. Use you're heads!
Please, continue. I'd like to know alot more, i see this information you speak of as vital. Would it be dangerous for you if you decided to list any durther details that can aid on what goes on with firms like this?
I heard of a website that was posted on a thread deleted a few days ago, called forexbastards . com. No I am not affiliated with it, it just had what appeared to be some interesting info. I can't recall if I read this here or there so here goes. There was mention that if a real good trade set ups and the bucket shop doesn't want to take a chance then they just temporarily disable the platform so that they don't take the risk of your trade. Then when ppl bitch they say they had some sort of outage. I have to say that's horrible and pretty crafty since all brokers has clauses that say they aren't responsible for tech failures before they allow you to trade. This even occurs in the futures currencies which I trade although I have never had any of the problem that forex folks seem to have.
They'll start to keep you out of trades that they can't hedge in time. I used to trade extreme swings with a broker until they simply stopped getting me the fills, started "reviewing" my trades. Had i implemented any type of sophiticated trading scheme they'd bounce me. FYI... IB internalizes orders which means Timber Hill LLC will be the other party on some of your trades--they are trading against you--filling you at a non-competitive price while they lock down a better pool of liquidity with a better price. Wake up and smell the roses, this is amateur stuff here people...thinkorswim will execute your orders on an agency basis. This is what you want--agency fills, not principal fills. best of luck
For equities, find a broker that will execute your trades on an 'agency only' basis--aside from electronic exchange rebates which they should pass on to you. Read the fine print under Order Flow/Routing/Execution in a brokerage agreement.