Sabotaging profitable traders on Spot FX dealers?

Discussion in 'Forex Brokers' started by Remiraz, Jul 14, 2005.

  1. Remiraz


    I read that for a lot of Spot FX dealers once you're flagged as profitable they'll put you on "manual execution" which means major slippage and requotes.

    True or false?:eek:
  2. Don't know about profitable Spot FX traders, but a while back quite a few Spot FX traders were complaining that once they were branded as "scalpers" by their bucket...err... I mean broker... they were put on manual execution...

    Cheka-cheow !

    Caveat emptor
  3. fxknight


    I thinks its more what Equalizer said - traders that frequently scalp and take advantage of arbitrage that get placed on the dreaded manual execution
  4. Chood


    Below are some recent jewels from Moneytec, where the shills for spot fx dealers (the bucketshops) are winning the battle.

    First, proving that suckers really are born every minute, is this request (somewhat pitiful) from a bucketed customer about to tap out:

    "Hi every body

    i learn forex 9 month every day 17 hours

    right now real account before 4 month

    i am very sad

    i dont know what i do to win every day 20 pips

    i read everything every system

    i need help what i can to do

    just 20 pips every day

    any frames 60 min , 4 hours , day

    but i want 20 pips

    any one have offer"

    Second, proving that “dumbing down” pays, is this tag-team shill:

    [Straightman:] “Yes Kali, and others...what broker do you use? A sympathetic broker offering tight pip spreads is key to scalping. Otherwise forget about even trying.”

    [Reply:] “Look for broker that offers 1.5 pip spread on eur/usd. 2 pips would make it possible too. I don't experience slippage live trading at all---if anything sometimes the price will move a pip or two in my favor as I enter or exit.

    [Straightman:]: “Kali , you forgot to mention , which broker you are working with.”

    [Reply:]: “interbankfx offers 2 pips spread on eurusd.”

    I particularly like the "sympathetic broker" part. Kinda gives you the warm and fuzzies about all the money the spot dealers want to give you, including when they add "a pip or two in my favor as I enter or exit."
  5. Remiraz


    guys, scalp meaning buy bid sell ask type of scalp right.

    i mean, i'm a "scalper" too as in i pocket 5-10 pips per i in danger if i possess a bucketshop account? :eek:
  6. Some of the FX exchanges have the ability to disable you from trading against some of the larger liquidity providers(banks) at the banks request.....

    See link for a topic concerning "manual execution" for option traders. All option exchanges and specialist firms are currently being sued for slowing down profitable options traders with "manual execution" (and yes, manual executions even on fully-electronic exchanges). It is a calculated effort by an entity to take your profits for themselves. The calculation on their part occurs when they estimate that traders will suffer in silence with whatever rules they may institute against you. The SEC report states the AMEX has gone so far as to falsify documents to government agencies to conceal trading violations committed against traders.

    Effected traders should get together, possibly on the ET board, and notify the appropriate regulatory agency of the abuses, keep track of the trades in question with exact dates and times, etc., actively encourage other exchanges to list the securities, and hire a law firm which will take your case on a contingency basis.
  8. Remiraz


    I guess its prudent for me to scale out into an honest firm like IB or onto FX Futures asap then.
  9. Hmm. If they can back you off there must be an edge here.
    #10     Jul 17, 2005