RefcoFX vs. Oanda

Thats kind of my point.

If you only trade with one house and THEIR qoutes, you're stuck with their fills.

 

By implication you would not use them to trade news?

 

Sounds like ECNs the way to go...which brokers fall into this category?

 

i wouldn't, but feel free, i am not saying it won't work...

 

there are quite a few out there, can't really recommend one in particular, suggest you run a couple of searches on this forum or yahoo etc... g'luck!

 

Y'all really need to read their terms & conditions. I cant stress that enough.

They reserve a lot of rights, that I've never heard of banks or futures markets claiming to have. Even though their terms probably wouldnt stand up in court as usual and customary market practices, your loss has to be pretty substantial to go to court.

I really dont get the benefit of these so-called FX brokers. Its their rules, their qoutes, and your credit exposure is to a broker who has co-mingled your funds elsewhere. IMHO, your true credit exposure isnt to Oanda, but to other customers. If a large Oanda customers blew up, could Oanda keep operating in the morning? I dont know.

In futures, theres plenty of folks with orders both customer and discretionary watching the prices, so there is little to no argument about what the high or low was and how much traded there.

FWIW, I've seen Tier 1 dealers honor orders if another dealer said the market touched some level, even if the dealer holding your order didnt qoute it. Does Oanda do that?

 

On the basis of this discussion, as well my own experience with RefcoFX's sludgy, suspect price action, I will not be trading Forex.

 

IMHO, the brokers appraoch FX from a broker perspective. They take orders and get paid for execution.

Dealers put capital at risk to get customers orders done. Why aren't y'all dealing with banks and investment bansk?

 

Could you be more specific?

I have a real RefcoFX account and have never had a problem with their quotes, or price action, at all.

 

FX brokers ain't brokers. They're dealers. In a fair market, you get a selection of dealers so if ones crooked you can always patronize another. Natural selection will weed out plenty of bad seeds. (not saying there aren't any left though)

For accounts less than $2-5k, i guess they have no choice but to go for FX bucketshops. They're all pretty bad when compared to Futures but the cream of the crap has to be Oanda.