I heard that when you are new to forex all your broker wants is for you to open a live account so they can bid on the opposite side of your trade whenever you place one, they know you will lose your money therefore not only take the pip spread profits but all your money. Is this true?
YES. NO. This has been deeply discussed here, try to search the posts for "bucketshop" or "bucket shop". In general, no, this is not the normal way. But a broker *could* act as this. I've written an article about this, but it's in italian (http://www.gabrielevivinetto.it/app...a-di-un-broker-forex-la-tipologia-di-attivita) In Forex, choosing the right broker is same important as having a methodology and knowledge, more than on other markets. You need to KNOW the market structure inside which you operate. The problem could not be seen in the broker, but in the inexperienced forex trader. "I heard that when you move to NYC, all you get is wipe out your savings account. I it true ?"
How pathetic that it's so damn hard to find an ethical currency brokerage-- Are there any? It's sad as hell. Closed three accounts with Gain Capital after catching them screwing me on the cost basis of scaled positions and commissions. -Prof.
Again, this has been deeply discussed. Spot is different from futures. If I want (need) to trade spot, is because i don't want to (I can't) trade futures. It's not "what is better than", is "what I want".
Pure nonsense, spot is the same as futures: they can be arbed quite easily. However if you want to trade spot you have to go with an ECN-model based broker. Like that you are guaranteed fair prices. I myself use IB because I like the tight spreads and the platform.
How can they be quite different: they are exactly the same, the only difference is one has an intrestrate differential added to them for the time period they trade. Read up on the way the pricing of futures is formed, it's quite easy. From a more practical point of view less theoretical point of view: Intraday they move in lockstep 1 to 1. Overnight futures are much cheaper: the intrest that is implied is much cheaper than the intrest your broker will charge. Hence it is clear if you go overnight you should use futures. Intraday you can choose the market that suits you best. For me it's spot as I only trade intraday, IB lets you trade half a pip and I can be more flexible with size.
Spot is OTC, Future is regulated. Operationally, to tell something more specific, on Future you have a book and volume, on spot you haven't (at least meaningful values...). You can't trade future in the same way as spot. The liquidity of spot is not comparable to the one of future. They are totally different, the same difference between "cappucino" and "cafe latte": they have the same ingredients, but the product is intended for different customers, for different tastes and to satisfy different needs.