Forex brokers

Discussion in 'Forex' started by nirav34, Mar 18, 2008.

  1. nirav34


    I see no way you can day trade forex. I mean look at the damn spreads on most pairs. Is this because of the broker am I looking at? I am trying out demo of couple brokers and I see the same trend everywhere. Do you guys get filled between the bid and ask, or should I just swing trade the currencies? Thanks in advance.
  2. Virtually all Forex brokers are bucketshops.

    They don't actually buy or sell the currencies for you when you place orders.

    They just keep your money, and simulate trades (bucketing), since most traders lose money, they make every dollar their clients lose.

    They "help" you lose money by introducing oscillations in your quotes. For most daytraders with high leverage, this fluctuatiuons are enough to activate stop loss orders.

    So, that being said, go for CME FX futures my friend.
  3. nirav34


    Thanks for the reply. That was exactly what I was thinking. I will stick to futures instead. Thanks again.
  4. FXCM's USD/CAD and GLOBEX CAD Futures practically move tick for tick. I frequently will monitor my CAD Future position at in the Live Currency Rates box upper right.

    Do you have actual proof that the broker will "introducing oscillations" to hit stops?
  5. I do not want to argue about individual brokers and their methods. However, it may seem as if stops are "run" only because many like-minded traders put their stops on similar prices or pivots or fib lines. I have had feelings of being targeted, but in hindsight my stops were in popular spots to begin with. My opinion.
  6. Being Forex an unregulated market, SOME brokers feed different quotes to their customers, to run stops.

    Virtually ALL brokers introduce fluctuations to run many stops set below 20 or 30 pips.
  7. Do you have proof of this? Sounds like BS to me.
  8. The market by itself, be it the futures market, or the TRUE Interbank Market (in which Forex brokers DON"T operate), has some fluctuations.

    Some fellas at a fund, have an spot account at MF,
    They clearly run for stops, it you place an stop, it starts moving trough it, if you remove the stop, it goes back where it came from.

    Come on, your nickname is forex-forex and you don't know what bucketing is?
    Do you still believe they just make money from the 3 pip spread?
    Do some reality check!
  9. never used stops when fx trading with dealer.

  10. Agree with surf. Don't use stops if you can help it. Better to trade small amounts in a portfolio of positions (oanda good for this) over days/weeks.
    #10     Mar 19, 2008