Perils of Forex - article from HRE

Discussion in 'Forex' started by 50 cent, May 5, 2004.

  1. Nice article, thanks!

    Two things:

    1) OANDA is not mentioned. Only reference to brokers who lock you into either a 10K unit or 100K unit fx contract with 5 pip spreads. With OANDA you can trade as little as 1 unit with a 2 point spread.

    2) Quote from article: "Banks are finally turning their attention to the retail market and may soon allow direct access to the Interbank system used by institutional traders."

    You have any idea what this guy is talking about?
  2. Don't know much about Forex.. just saw the article at Alan Farley's site so I posted it.

    I know that IB will offer forex very soon, that will probably be a very good forex broker.
  3. 50cent,

    as far as i know, you can trade currencies with IB...they just dont offer any leverage...:)
  4. hardcash homie,

    their IDEAL FX system is not meant for forex trading, just for conversion of funds. They state so themselves. It offers no leverage, has extremely wide spreads, and there is additional commissions on transactions.

    However, Def (IB's rep on ET) said that proper and very competitive fx trading will be offered by IB very soon!

    I don't trade fx on a regular basis but I may take occasional positions or hedge my currency.

  5. 50cent,

    oh...i do not have an account with IB in the moment, but that would be a nice perspective...looking forward to it...
  6. Quotes from the article:

    ""See this?" Solt asks. "You can sum this up by saying the risk [of loss] is 125 times greater than the average return on the yen." In other words, people betting on Japanese currency are 125 times more likely to lose money than to make it. The pound and Canadian dollar aren't much better."

    I ask, what is his trading structure? Does he even have one?

    Solt is blunt: "If the currency moves against you, you could lose everything, like that – " he snaps his fingers.

    I've had the currency move against me plenty of times - I have not lost everything.

    While Solt holds a Ph.D. in finance.

    This guy has his head up his ass.

    This seems to be an issue with 4X Made Easy and a few rogue brokers.

    The reality behind forex is this: All the PhD losers can't make a cent because their swelled "educated" heads cannot figure out how to.

    I'm a high school drop-out and I consistently make a lot of money trading fx.

    Forex trading is nothing but world currencies shifting hands daily. Prices fluctuate. To make money, your system needs to take into account certain... realities... behind the entire structure of this.

  7. traderob


    What a great article!
    4Xmade easy - from the same comapny that brought out wizetrade.
    AND did you know if you buy them as a bundled package you get a 25% discount. WOW.
  8. TigerO


    True, FX is cool and you can make good money there and there are good brokers like OAnda or Saxo, or IB if you want to trade currency futures, but what sucks are all the crooks, be they shady brokers, con artists or what have you FX attracts a bit more than other markets as it's unregulated.
    #10     May 7, 2004