the book is in no way a shill for FXCM, and is published by the reputable wiley finance--- not a self published promo piece. kathy explains the differences and advantages of FX v. futures at the start of the book pp 12-14. i trade both FX and currency futures--- each have their place in a traders arsenal. best, surfer
What is wrong with you Jim Rockford? You are infiltrating every forum with the same agenda, to trash refco an fxcm. Why are you doing this? You also tried to dispute the concept of segregated accounts at refco and you were wrong all along, that Apex guy gave you a good lesson. Give it up man, get a life!
Ok, good I'm glad it is mentioned. Do you use FX for just longer term trades surfer? Futures for scalping? That is the way to go imo. Good trading surfer, LTB
Jim........On FXCM's home page is a link "Risk Warning". By clicking on this link it take you to this: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. I haven't read the book in question, but I'm sure they have mentioned the risk with Forex trading.
jim rockford, while i am not going to argue the NFA situation since i am not privy to exactly what occured, i will take issue with your defintion of "bucket shop". FXCM's executionable quotes are in line with the other dealers--- i utilize a matrix of multiple dealer/ future prices, rarely, if ever do the executionable quotes vary by more than a few pips, they tightly follow the actual interbank figures. i have never witnessed the manipulation that you claim occurs to justify the term "bucket shop". surfer
Nope, TMcKenna, you got your facts all wrong and all backwards. I won the argument about segregated accounts. I never disputed the concept of segregated accounts. I quoted warnings from CME and CFTC that segregated accounts provide some protection, but that a futures trader can still lose his entire account in a broker bankruptcy, despite the limited protection of segregated accounts. I was right. The people who denied this eventually admitted that I was right. Many people thanked me, either publicly or privately, for revealing to them this risk that exists with segregated accounts. Anybody can verify this by reading the thread entitled "Refco Account Security". My agenda is not to trash Refco and FXCM. My agenda is to educate others and to be educated by others. Does it bother you?
uninvited_guest, one of the problems with the disclosure you quoted is that it fails to acknowledge that a customer can make perfect trades and huge profits, and then lose it all in an instant if FXCM goes bankrupt. This risk disclosure makes it sound like the only risk is that a customer will make bad trades. This risk disclosure fails to acknowledge the risk of an FXCM bankruptcy making customer funds disappear. One of the reasons FXCM was just fined is that it has been lying to customers, telling them that their funds deposited with FXCM are "safe at all times", when in reality, they can be totally lost if FXCM goes bankrupt.
This is factually wrong I am afraid. I trade with many different FX firms and I closed my acount with anyone as soon as I see evidence of 'bucket' shop type activity. I have closed my account with FXCM. As to direct factual evidence. Look at the euro dollar chart for August 2004 on the NFP day. The figures were awful and euro dollar gapped 100 pips higher. FXCM took the euro dollar price down about 30 pips vey very qickly, triggered all the short stops and then rallied 170 pips. I know many people who lost an awful lot of people by this price action that bore no relation to what happened in the inter-bank market.
Mr Rockford is a knowledgeable individual, and it appears that his posts have touched a, shall we say, "raw nerve". I wonder why? Keep on doing your thing Jimbo, I for one am totally grooving on your posts.
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