I know a guy who knows a guy that has been around a couple of different platforms. Gain, FcStone and FXDD I believe was the order of things. He let us know that they do for sure trade against you. I have worked a large account with FXDD and had a wild time because of constant price changes and even not being able to close the trade. I do believe that's why he left the other platforms and went to a company that specializes in stocks but that have now a forex division. I have spoken to his co-worker and my brother has spoken to him directly. So basically, from the horse's mouth you can say. With 95% I guess of people who lose all in the forex, taking trades against them seems like a winning system.
With all of those companies doing this "trading against you" I would think that this would involve several hundred bodies. How do they keep the secret? For those that have exited the business, I am surprised we do not get a couple of them posting about how their managment gave them a program that they used that enables them to see the book and actually trade against it. Surely they could recognize what they were doing? why don't they post ...Like this: I used to work at **** and I was a trader.....and I traded against the other clients...bla bla bla...they are anonymous and who would be able to sue them? Michael B. P.S. Do not get me wrong...I believe the wild West of Forex needs more regulation and this "trading against the client" is going on....
Dealing Desks. They are bad. If a broker has one, they will eventually start eating away at you. ANd if you make money - real money, you be sent packing. The purpose of the dealing desk is to fulfill your order. Since anecdotally 90% of traders fail, it makes good sense. Also, they can 'run stops'. That is pretty ugly too as it removes money from your pocket. An ECN on the other hand is on 'the network' and all the other trading partners out there can fill your order - including a number of banks (which ones depends on your ECN). For my money - always pick an ECN like MBTrading or CoesFX. There are a few others. Between the two mentioned, MBTrading was responsive to my queries prior to opening an account. CoesFX was not. MBTrading for me thanks! Remember this - for mini accounts - they ALWAYS use a dealing desk.
Is that because they must transfer to LOTS?... What does MB trading do with their minis if they do not have a dealing desk?...(Do not get confused folks MB trading calls a mini a lot...actually a mini as I learned it was 1/10th of a lot and a lot was 100k units) Remember this - for mini accounts - they ALWAYS use a dealing desk.
But if the mini account was trading small, being a novice trader and didn't pose much of a threat to them since it was trading small, would these companies I heard about still played unfairly like stopping trades etc during news time if the amount of my money is not that big to frighten them?
Exactly. A mini has to use a desk. Including MBTrading. Standard accounts are handled differently. Hey - ES, by the way - glad you are still here. Smart guy! An adult 'midst the children! Cheers
Sure. GO to www.strategybuilderfx.com and there you can sign up for a Coesfx account. THey are an ECN, but they do not seem to respond to presales questions at all. Not a good sign. But hey - give it a shot. Perhaps your experience will be better than mine! I hope so.
One of my friends in NYC is a manager at a dealing desk for a well known firm and he has told me exactly how the firm capital is used to take speculative positions when a large % of retail traders are long/short. For example, their accounts are 80% short, so the firm is already heavily long... they will additionally buy more from the banks directly. Not to mention the trading "with" those big traders who actually make money. Example... Successful trader A buys $20M EUR/USD, dealing firm buys $30M ($20M to cover position + $10M speculative position). Personally, I don't really have an issue with it. I have traded almost every market over the last 10 years and love the moves in forex. I look forward to sticking them with the other side of my winning trades. Good trading...
Hmmm... interesting. So by what I'm seeing on this thread, it is best to just start a regular account instead of starting with a mini account when starting in Forex. Does that sound like a correct conclusion?