I agree, you won't be able to trade confidently if you are extremely worried about your firms openness. You won't be able to escape it in forex retail, it's the way things are in the industry at this time. If you are really worried, pull you cash out and find something more regulated.
Just the opposite. Being a polyanna just because its convinient and painful to see the facts is what doesnt cut in trading. I mean really, how on earth can you guys trade all day taking care of 'risk' and not betting the farm and when confronted with facts that your entire bankroll might evaporate overnight all you guys can do is say 'whatever, its not gonna happen, their too big to fail, they got reserves' Then those arguments are refuted one by one and all you can do is close your eyes and march forward.
Heh...whatever. I'm not going to be drawn into such a silly discussion. If you don't know how to manage your risk, it's not my issue, mate. I do not close my eyes to anything. I do my own due diligence.
Daal raises a valid point but I look at it as a business risk. Enron and Refco could be put in the same box regarding how it gave everyone a surprise. The fact of the matter I think is that if a company wants to hide something, they will and you won't ever see it no matter what. Either in forex or outside industries. So all we can currently do is be happy if our current broker is over the NFA requirement. Other than that it's keeping an eye on the service, slippage, shady dealings/contradicting claims the broker does to decide if you want to stay with them or leave. That's the way I see it. Have a great week all
I agree and thats what I want fx traders to admit, that they are taking a big gamble that their broker might fail and they lose all their money not hide behind the idea that oanda/fxcm/my-broker is more sound than the others without any facts. Once they admit that and everybody is on the same boat then we can start to find ways to diminish that risk by choose the least likely to fail broker using some kind of historical criteria, I have no idea which criteria would work. the fact that oanda pays more interest than the others is almost surely a negative though
No one is saying any broker is better than any other here. No one is saying there's no risk. You're the one with the (two, now) threads on OAnda, claiming that there might be rot beneath the carpet. If there is, show us the proof. It's ok to check up on brokers. But do some research and prove what you say is true before coming here and trashing a broker that might not be deserving of it.
For what it's worth, Oanda appears to be one of the most professional, sound FX brokers. They don't have all the "open a demo or small account and learn to get rich" ads, don't do all the deals with IBs, etc. Of course, appearances can be deceiving, but that's the impression I get.
Ok calm down guys hahahaha *ducks behind desk* Well it would be perfect if our brokers would supply more info to us on their financial standing but it will be pointless asking as many of them are private companies and so we aren't able to view their records. That would be the only reliable way to see if one is going down or doing well. I admit there is risk of trading with fx retail brokers at the current time and until bigger regulation is in effect, it will stay like that. At this current moment in time, it's a risk that has to be accepted if you want to trade. However when regulation does come, I see the days of 400:1 etc. been chopped and more papers to fill out when dealing with accounts not to mention many other more requirements, test tubes and blood samples. Regulation is a double edged sword, I don't mind it but as long as it's done right... but looking at past regulation of industries, most of the time there's someone with a hidden agenda behind it for a profit. Have a good afternoon guys