FxPro Discussion

This is a discussion on FxPro Discussion within the Forex Brokers forums, part of the Commercial category; Dear Members, We are pleased to announce that the FxPro MT5 is now live. As always, should you have any ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Mar 16, 2015, 12:57pm   #16
 
FxPro Group's Avatar
Joined Oct 2012
FxPro Group started this thread Dear Members,

We are pleased to announce that the FxPro MT5 is now live.

As always, should you have any questions regarding that product, please do not hesitate to contact us.

Kind regards,

FxPro Team
FxPro Group is offline Broker   Reply With Quote
Old Mar 16, 2015, 1:18pm   #17
Joined Aug 2012
Slippages is part even in regulated exchanges true not denying that ...The point I am trying to make is why does OTC fx has to explain so many things as compared to a regulated exchange!

Points such as
- Slippages
- Market Maker or Dma ( conflict of interest or no conflict of interest
- Where they are regulated
- How is client money is handled
- Stop hunting!
True reasons being many dodgy operators in this filed and ability to get a $2 company to start a"Broker business"
How many times have we have seen true exchanges going burst NYSE/CME/CBOT/ LSE/ASX/SGX
On the other hand "Large " so called honest brokers (who are essentially are acting as exchanges" have gone burst
Sooner FX OTC and CFD businesses act as true exchange and introduce more robust client money safety cover like SIPC/ FICS better for everybody ...then traders only will have to worry about market risk not the silly Counterparty risk.
moka2 is offline   Reply With Quote
Old Mar 17, 2015, 7:22am   #18
 
FxPro Group's Avatar
Joined Oct 2012
FxPro Group started this thread
Quote:
Originally Posted by moka2 View Post
Slippages is part even in regulated exchanges true not denying that ...The point I am trying to make is why does OTC fx has to explain so many things as compared to a regulated exchange!

Points such as
- Slippages
- Market Maker or Dma ( conflict of interest or no conflict of interest
- Where they are regulated
- How is client money is handled
- Stop hunting!
True reasons being many dodgy operators in this filed and ability to get a $2 company to start a"Broker business"
How many times have we have seen true exchanges going burst NYSE/CME/CBOT/ LSE/ASX/SGX
On the other hand "Large " so called honest brokers (who are essentially are acting as exchanges" have gone burst
Sooner FX OTC and CFD businesses act as true exchange and introduce more robust client money safety cover like SIPC/ FICS better for everybody ...then traders only will have to worry about market risk not the silly Counterparty risk.

Dear Moka2,

I’m afraid there is always, and will probably always be, counterparty risk. 2008 was a big lesson for us all in this respect. Also, in the interests of balance it’s only fair to point out that exchanges have had their fair share of issues too, as well as a great deal of potential funny business to explain. Take the numerous and frequent allegations of rigging by Wall Street banks in concert with some of those very same exchanges you mention. That’s to say nothing of co-located high frequency trading funds that are able to move much faster and see the market at a far higher resolution than retail traders. Institutional algos that are able to identify the levels at which you are willing to buy or sell and then frontrun your orders for a profit, hundreds of thousands of orders per second, all day every day. If you go into the history of markets you’ll see that stop hunting, and in fact many of the tricks employed by disreputable FX brokers are not new at all, they were invented on the stock and bond markets.

As for how many times we’ve heard of a big exchange going bust; I think you’re confusing the market with the broker here. We’ve not had the FX market go bust either. Stockbrokers on the other hand, much like FX brokers, go bust all the time.

Regarding bringing FX on-exchange, there is a great deal of debate surrounding this issue; however, it’s unlikely that you’ll ever see FX being traded exclusively on exchanges. FX is a 24 hour, global, decentralised market. Currency flows are the lifeblood of nations and the businesses they comprise. Whatever the time of day or night someone somewhere is making a market by exchanging one currency for another; this is its beauty of the currency markets.

The bottom line is that regulation can only go so far, where there is trading there is risk and as with everything else in life, the onus is on the individual to be thoroughly cognizant of those risks. For our part, at FxPro we do everything we can to ensure that our traders are well-educated and that when they are ready to trade they can do so on as level a playing field as possible, one governed by fair trading practices and professional conditions.
FxPro Group is offline Broker   Reply With Quote
Old Mar 17, 2015, 7:44am   #19
Joined Aug 2012
wild wets of OTC

[QUOTE=FxPro Group;2508450]Dear Moka2,

Regarding bringing FX on-exchange, there is a great deal of debate surrounding this issue; however, it’s unlikely that you’ll ever see FX being traded exclusively on exchanges.

Debate from whose point.. FX OTC industry will oppose it always no surprise there.

From a FX broker's point of view ofcourse you don;t want to see business going to a regulated exchange, but from a consumer point of view it would be better and if it comes with some SIPC coverage even better.
-Exchange take away/ reduce counter party risk
- Are more closely supervised by national authority

Current Fx brokers can still make money just like Futures or Stock brokers by just offering exchange traded FX to it's clients

It actually exists in the form of FX futures by the way on ICE / CME etc
Much more transparent.

I am not against the concept of OTC however OTC has not effectively solved the problems of
- Transparency
- Client Money safety
From a consumer point of view.

I wonder why is OTC so against tough regulations where an orderly market will entice even more participants!
Nothing is guaranteed in life is not an excuse to have the "wild west" in this financial market .
moka2 is offline   Reply With Quote
Old Mar 20, 2015, 9:14am   #20
 
FxPro Group's Avatar
Joined Oct 2012
FxPro Group started this thread [QUOTE=moka2;2508472]
Quote:
Originally Posted by FxPro Group View Post
Dear Moka2,

Regarding bringing FX on-exchange, there is a great deal of debate surrounding this issue; however, it’s unlikely that you’ll ever see FX being traded exclusively on exchanges.

Debate from whose point.. FX OTC industry will oppose it always no surprise there.

From a FX broker's point of view ofcourse you don;t want to see business going to a regulated exchange, but from a consumer point of view it would be better and if it comes with some SIPC coverage even better.
-Exchange take away/ reduce counter party risk
- Are more closely supervised by national authority

Current Fx brokers can still make money just like Futures or Stock brokers by just offering exchange traded FX to it's clients

It actually exists in the form of FX futures by the way on ICE / CME etc
Much more transparent.

I am not against the concept of OTC however OTC has not effectively solved the problems of
- Transparency
- Client Money safety
From a consumer point of view.

I wonder why is OTC so against tough regulations where an orderly market will entice even more participants!
Nothing is guaranteed in life is not an excuse to have the "wild west" in this financial market .
Dear Moka2

I’d like to point out that as far as FxPro is concerned, we have always encouraged tighter regulation across the industry as a whole. By saying that I doubt FX will ever be traded exclusively on-exchange, this shouldn’t be interpreted as being against regulation or encouraging a “wild-west” mentality. The decentralisation of FX is purely a function of how the market has organised itself since currencies were allowed to float freely against one another.

Back to our specific business, the oversight from our regulators is in fact extremely strong, especially regarding know-your-customer, anti-money-laundering, segregation and safety of client funds etc. Even the symmetry of positive and negative slippage is accounted for.

In many ways retail FX is actually more tightly regulated than its institutional counterpart due to the fact that we are client-facing businesses that have to be in compliance with all sorts of consumer protections.

As for the structure of the market itself; the sheer size and scope of the FX market leads me to believe it won’t be moving on-exchange anytime soon. At the very top of the food chain banks trade between themselves and at the very bottom one currency can be exchanged for another, face-to-face, wherever there are parties willing to exchange at a given rate.

Finally, as I have mentioned in my earlier post, “tough regulations” have not led to increased transparency in the markets you speak of. Centralised markets are in fact among the most easily manipulated markets that are currently being traded.

Kind Regards,

FxPro Team
FxPro Group is offline Broker   Reply With Quote
Old Mar 20, 2015, 12:21pm   #21
 
FxPro Group's Avatar
Joined Oct 2012
UK education seminar

FxPro Group started this thread Dear Members,

We would just like to bring your attention to our free education seminar which we are holding in our UK office, heart of the City of London. This will be at 18h00 UK time on Wednesday 25th March.

If you would like to attend please click on this link to register or see further details http://www.fxpro.co.uk/trading/academy/events

Kind Regards,

FxPro Team
FxPro Group is offline Broker   Reply With Quote
Old Mar 20, 2015, 12:26pm   #22
NVP
 
NVP's Avatar
Joined Jun 2004
welcome to T2win ...enjoy the ride.....seems you are getting it easy so far ......
NVP is offline Coach/Trainer   Reply With Quote
Old Mar 22, 2015, 9:09am   #23
Joined Aug 2012
Lets get to the fact
You talk about segregation and safety of client funds etc.
1) Coverage in case of Broker failure
Exchange traded products ( Stocks and Option) CLient funds are completely covered by SIPC in US, FSCS in UK and by NSG in Australia
OTC FX and similar :
USA = NO coverage
Australia = No coverage
UK: FSCS coverage! but the Alpari test will prove if it realy does cover it Lets assume it does!

2) Conflict of Interest
Exchange traded Products: Normally NO unless broker has prop trading activity
OTC FX and Similar
Market maker model exists in many countries and only when consumer got more informed then only OTC started asking about this possible conflict forcing OTC brokers to start advertising DMA ECN etc
3) Counter party Risk
Exchange Traded:
THE EXCHANGE ASSURES THE COUNTER PARTY ( Because they are a true exchange not a pseudo exchange like and OTC "broker"
OTC FX and similar:
Even if it is a DMA the ultimate counter party ( Banks as you mention at top tier) could default!

4) Entry barrier:
Exchange Traded = Highe
OTC = Lower ( may be only now the US govt has made it higher)

This is a futile debate because no matter what since Centralized markets are your direct competition you will never concede a point against OTC
I have seen an OTC broker go burst with 47 M in fraud in SEG a/c
It was mix bag business only the shares held under the HEN identification were saved
If it was a Equity broker the Clients had a much better chance.
SO from that point of view atleast Exchange traded is beter for a consumer than OTC but sure you wil never agree to that!
Perhaps the only safety net is UK FSCS covered 100% UK based OTC (which you are)
(Disclaimer: I am not from the industry I am just a trader/ user consumer my interest is Consumer protection that is all)
End of story
moka2 is offline   Reply With Quote
Old Mar 22, 2015, 9:38am   #25
Joined Aug 2012
[QUOTE=FxPro Group;2489136]Dear Spinola,
the big discussion in the wake of Black Thursday has centred on leverage, quite erroneously in my opinion. I personally don’t see this as a situation that could’ve been managed any better with lower gearing. For example, even with a book composed solely of 1:100 orders, with 100,000,000 exposure (i.e. 1,000,000 margin) a 30% move would’ve caused a loss of 29,000,000. With 1:50 leverage the loss would’ve just been 28,000,000 rather than 29.

How?

Pair goes down by 30%

Case 1 leverage 1:100 , My 1000, position 100,000
I loose 30,000

Case 2 Leverage 1:50 My 1000, Position size = 50000
I loose 30% of 50000 = 15000

More the leverage more you loose ( or gain) is it not
Or am I missing something!
moka2 is offline   Reply With Quote
Old Mar 24, 2015, 8:12am   #26
 
FxPro Group's Avatar
Joined Oct 2012
FxPro Group started this thread [QUOTE=moka2;2513096]
Quote:
Originally Posted by FxPro Group View Post
Dear Spinola,
the big discussion in the wake of Black Thursday has centred on leverage, quite erroneously in my opinion. I personally don’t see this as a situation that could’ve been managed any better with lower gearing. For example, even with a book composed solely of 1:100 orders, with 100,000,000 exposure (i.e. 1,000,000 margin) a 30% move would’ve caused a loss of 29,000,000. With 1:50 leverage the loss would’ve just been 28,000,000 rather than 29.

How?

Pair goes down by 30%

Case 1 leverage 1:100 , My 1000, position 100,000
I loose 30,000

Case 2 Leverage 1:50 My 1000, Position size = 50000
I loose 30% of 50000 = 15000

More the leverage more you loose ( or gain) is it not
Or am I missing something!
Dear Moka2,

The extract you take from this article is written from a broker’s point of view. In each instance note that the total notional exposure is the same i.e. 100,000,000, but the margin posted with a prime broker is different (1,000,000 on 1:100 and 2,000,000 on 1:50). A 30% move against you is 30,000,000 but the extra loss on 1:100 is 29m and 28m on 1:50.

In the example you provide you are looking at it from a client’s point of view and this does not equate to the example given by our CEO in the article. In both cases you have only specified your deposit size and leverage, which will determine the maximum lot size you can open. So, with 1,000 deposit on a 1:100 account you could open a maximum of 1 lot, whereas with a 1,000 deposit on a 1:50 account you could open a maximum of 0.5 lots (if you are not using stop losses). As you can see both are totally different trades and as your example shows, different losses incurred on a 30% move.

The premise of our CEO’s comments are that lower leverage wouldn’t necessarily have caused brokers to lose any less than they did on the SNB move. This of course is subject to opinion and a point that is being debated within our industry.

Kind Regards,

FxPro Team
FxPro Group is offline Broker   Reply With Quote
Old Mar 24, 2015, 1:22pm   #27
Joined Aug 2012
Leverage is innocent!

[QUOTE=FxPro Group;2514082][QUOTE=moka2;2513096]

Dear Moka2,

The extract you take from this article is written from a broker’s point of view.

How would we know that! as a trader of course what make seance is more the leverage more the loss (gain)
And in a event like this the trader ( if the broker demands recovery of negative balance, which I guess you have a legal right to call upon) the person using more leverage is going to get heart more.. simple logic is it not?

No wonder Equity markets do not have such ridiculous leverage!

It is the promise of Huge gains due to high leverage that sucks people in to this.
They conveniently don;t look at the flip side of the coin and as a industry participant OTC brokers don;t want them to look at it either
It seems you are not ready to accept any criticism about OTC
Why don't you look at at what I said before about Client Money protection
HOW exactly is Client money "better protected" with OTC broker than a SIPC covered Equity and Options broker?
How? show the legal proof!
moka2 is offline   Reply With Quote
Old Mar 24, 2015, 4:41pm   #28
 
FxPro Group's Avatar
Joined Oct 2012
FxPro Group started this thread [QUOTE=moka2;2514466][QUOTE=FxPro Group;2514082]
Quote:
Originally Posted by moka2 View Post

Dear Moka2,

The extract you take from this article is written from a broker’s point of view.

How would we know that! as a trader of course what make seance is more the leverage more the loss (gain)
And in a event like this the trader ( if the broker demands recovery of negative balance, which I guess you have a legal right to call upon) the person using more leverage is going to get heart more.. simple logic is it not?

No wonder Equity markets do not have such ridiculous leverage!

It is the promise of Huge gains due to high leverage that sucks people in to this.
They conveniently don;t look at the flip side of the coin and as a industry participant OTC brokers don;t want them to look at it either
It seems you are not ready to accept any criticism about OTC
Why don't you look at at what I said before about Client Money protection
HOW exactly is Client money "better protected" with OTC broker than a SIPC covered Equity and Options broker?
How? show the legal proof!
Dear Moka2,

If you were to attend our seminar in London you would hear first-hand that we are very clear about how higher leverage can mean greater risk and we also have a full Risk Disclosure Statement on our website that addresses leverage in detail. We take this very seriously as it is in our interests to protect our clients. This is why we honoured our Negative Balance Protection policy following SNB, a policy that is not a regulatory requirement, to offer as part of our service.

In respect of retail client money rules these are very strict under both FCA and CySEC and we follow them to the letter. If we did not we would not be allowed to operate as a firm and offer our award winning services. As mentioned before, all retail client funds deposited with FxPro are totally ring-fenced and segregated in investment grade banks.

Kind Regards,

FxPro Team
FxPro Group is offline Broker   Reply With Quote
Old Mar 24, 2015, 5:20pm   #29
 
Pat494's Avatar
Joined Mar 2004
Hi team,
I have just downloaded the MT4 demo from FX Pro specifically to use your new quant system. However where is it exactly ? Can't seem to spot it in the indicators etc.

thanks
__________________
Love your own area.
Long live NIMBYISM

for quality of life.

The Westcountry is being overrun with
grotty new estates
Pat494 is offline   Reply With Quote
Old Mar 24, 2015, 10:01pm   #30
Joined Aug 2012
[QUOTE=FxPro Group;2514680][QUOTE=moka2;2514466][QUOTE=FxPro Group;2514082]

As mentioned before, all retail client funds deposited with FxPro are totally ring-fenced and segregated in investment grade banks.

Yes and I am not implying that you are not doing that!
And all traders/ investor wish that Broker's don;t go down
but the fact remains that if a a OTC broker goes down ( due to any reason) and if there is a shortfall in the Client Seg account .
Then unless the broker is in UK under FCA as of today there is no compensation mechanism .

Nothing in USA
Nothing in Australia
Don;t know about Canada and other EU countries
moka2 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
FxPro vinicius General Trading Chat 0 Feb 25, 2010 3:24pm
FxPro? subaszabolcs General Trading Chat 0 Jun 8, 2009 7:14pm
How does Fxpro work? g_xun First Steps 0 May 16, 2009 5:08pm
Fxpro is down trading100 Forex Brokers 0 Feb 24, 2009 8:06pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)