FXCM & Oanda walk into a bar...

Discussion in 'Forex Brokers' started by JasonGuillen, Jul 29, 2006.

  1. So, earlier this year, I started to "get into" FX trading, with only nominal experience in variable accounts. I downloaded FXCM's demo platform, bought every book I could, and spent about ten-twelve hours a day hacking away at it, while working from home. After having success on most of my trades (and seeing dollar signs dancing in my head) I paid $500 for FXCM's "thirty day course" and learned more. (much of the course I had already figured out...but...)

    I had a very small live account with FXCM, only $500. I doubled that in week, and then went and took that 30 day class. During the class they wanted us to trade only on their demo, and so I did. Usually, during the volitile morning, I would make smaller trades and steadily make money. During slow, rangebound afternoons, I would "bet the bank" and make quite a bit of money. I stayed far away from fundamental announcements and stayed close to range bound trading. Working hard and being focussed would usually generate $10,000 weeks.

    I was in heaven. I could see myself debt free, still working from home, vacations, the whole nine yards.

    Next Wednesday, I will be recieving $45,000. I was certain that this was the nest egg that would take care of me for the rest of my life. I began imagining my wonderful new future, excited. I called FXCM, and was immediately hooked up with "Mr. Walker" one of their "Gold" associates. As I would be opening an account over $25000, there were all kinds of perks I would recieve, free advice, fundamental alerts, weekly discussions with my OWN gold advisor, and so on.

    But something nagged at me.
    You guys probably think that this nagging was a wonderful stroke of fate.

    Whenever I called FXCM with questions and got one of their "normal" (non-gold) phone reps, and told them what I was doing, they seemed incredulous, as if NO ONE deposited that kind of money with FXCM in a lump sum. They treated me as if I was some rare financial unicorn, and this made me wary. Why did the biggest FX company treat me as if I was rare? What did these employees know that I didn't?

    Yesterday, I googled "FXCM complaints" "FXCM sucks" and so on. You know what I found.

    I also seemed to find that many people believe that Oanda is the single best. Late yesterday (friday)I got in on their FX game, but have had no real opportunity to play with it.

    With only a few days until my money gets here, I am freaking out a bit. Here is what I seem to be looking at.

    1) Go ahead and invest with FXCM. Lots of folks break their teeth on FXCM, and I do understand, intimately, how their system works. I made money on their demo, and should do the exact same here. If it IS bad,I can always change.

    2) Spend the next two days learning everything I can about Oanda, because they are the best choice. The money I may lose while learning a new operating system will more than make itself back. It may seem harder at first, but in the long run I will save myself headaches.

    3) Invest in a 3% CD. Go work at wal-mart. :p

    I am mostly worried because I am SO familier with FXCM. I am also worried because I know that with Oanda the leverage is different (50/1 rather than 100/1) that I might not make as much money, even with the pip spreads being so much better. ( I will get pips sooner, but will they be worth as much? Probably not)

    Sigh. I really felt ready to "go live",until 2 days ago.. I understand that maybe now I should wait and learn, it's just so frustrating, I had spent weeks waiting for next wednesday...
  2. Please, stay away with that kind of money from FXCM !:eek:
  3. i don't think fxcm will "allow" you to make money in live mode hehe
  4. I am posting, therefore subscribed to this thread. The writing style here is enthralling.

    I am so interested as to how the great minds of ET will reply.

    Eagerly waiting & reading :)
  5. Well, for starters you can read (or re-read, as the case may be) these reviews of OANDA.


    Then lock your money away for about 3 months.

    During this time your homework is to study this forum inside-and-out and while you recraft your methodology. It would help to do searches on OANDA and Electric Savant - hell he makes a living at it, so he must know something.

    I don't trade the currencies, and I've learned more than I ever wanted to by perusing these forums and talk'in with a friend of mine who prefers them to the e-mini's for some reason, and it seems that you've been given a reprieve from having your funds sucked from you the way a vampire sucks blood by getting the 411 on FXCM and getting the hell out of there (they are very clever and tricky and create shit out of thin air ... you've been warned) - so you should be relieved and happy to be moving your account, not frustrated about having to change over.

    You've got great instincts, and I'm sure you'll be able to put together a winning method at OANDA.


  6. jagui


    You should trade with an ECN-like broker, such as MB, IB, HotspotFX.

    They won't trade against you, because they're payed by commisions.
  7. Well, OK. FXCM is right out.

    So I HAVE now looked at MB as well. It's the leverage thing. If Oanda had 100/1 I would be golden....

    But the reviews on Oanda seem to make this a clear choice. I am just concerned that I won't do as well, since I have leveraged a lot in the past...
  8. Jason

    Ok...thats what I needed to hear.

    If leverage affects the "way you trade", then you need to take a step back to the drawing board.

    The only reason increased leverage or decreased leverage should matter is the amount of money you must tie up in deposit to your marketmaker. If you find higher leverage your system should remain the same AND YOUR DEPOSIT COULD DECREASE.

    But do not fret trader, your cash makes around 4.8% APR in Oanda, while you are working with your spreadsheets. MB pays in the 4% range too.


    I do not know you, but this may be the best thing that has ever happened to you. Please...Please Listen, even though it is coming from a woman's perspective.

    I know, I know..you are anxious to get started, but let this be the first time in your life that you just WAIT. You have in your head that you are going to be a millionaire and really need that success. But as you grow the job of trading remains the same. fight to stay level in your head.

  9. Yeah, I have been talking about that with my wife.

    I honestly can't know if leverage will affect the way I trade, because all I have done for 6 months is FXCM. All I have known is 100/1 leverage, and I guess I just can't be certain if 50/1 will effect me or not.

    See, I suppose I just need to wait til sunday, use the Oanda platform, and see how it works. My biggest fear is that 50/1 changes the numbers on me. I am very used to knowing "If I sell/buy X units, then I should be able to hit Y profits. Different leverage will change those numbers for me. Do I RELY on that leverage...I dunno. I DO rely on knowing those numbers by heart, and this will mix that up.

    I am grateful, the more I read, It really does seem like at the last moment I was able to pull away from a possible devastating position. Now, I suppose I just need to spend the same amount of time learning Oanda that I did FXCM.

    "Just a woman's opinion.." I don't think that should matter to any man who seeks wisdom. Right now, your opinion knows a lot more than mine...

  10. Do me a favor. Have your wife read this thread. Honey you have a good man there. Protect him. I think you guys will be alright. I am married to a trader too, and we have had a roller coaster lifestyle when we were trading Futures. Over the years I have learned to support a more consistent approach with my husband. He is going to trade, so do not fight it. You did not marry to change him, you married him because you loved him just the way he was. Do this together, the two of you. Just think what you can accomplish...its two against one :)

    To make a yield of just 40% a year requires very little daily profit...do the math. strive for consistency. Your money is earning 4.8% a year just sitting there and doing nothing...just gun the yield with a trade now and then to get a bigger number and do not overtrade, assuming you have an edge.

    Do not let the triple digit yielders fool you here on this board. You do not know if they make what they say or not. you do not even know if they trade. Yes there may be some people that can make triple digit yields and I do not doubt it, but I am happy with 40% a year with compounding.

    #10     Jul 29, 2006