ok guys I am new to forex trading. I have one question which broker is the most reliable in terms of keeping my funds safe? I hear a lot of good things about FXCM but they are owned by refco group which was in trouble some time ago if i am correct. what about GCI trading? their slippages are huge but are they reliabl? also what about saxo bank? I really need help here please. Thanks
phoenixforex
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beeing new to forex u shoud try to demo trade for a couple of months, use more than one broker to do that and see which platform u like best.
and than after u have proven yourself on the demo start a small LIVE account no bigger than 1000$ and trade with that.. than you should be able to make an informed decision about wich broker should you invest a larger amount with.if that's the case.
and than after u have proven yourself on the demo start a small LIVE account no bigger than 1000$ and trade with that.. than you should be able to make an informed decision about wich broker should you invest a larger amount with.if that's the case.
Chris Hood
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lokoman said:
Absolutely avoid Saxo Bank. Here's one of many posts explaining why: "Saxo 'Bank'? I advise you VERY strongly to read everything you possibly can about them before considering them. Not only here, but at MoneyTec and EliteTrader too. And think about who regulates them and read things written by the many people who've tried to call on the help of their 'regulator'. (But if you do that, you _certainly_ won't be opening an account with them.)"
Lokoman, safety of funds is understandably one of the first concerns new traders have before opening an account.
I had thought Refco partnered with FXCM after Refco wanted to open an fx service and avoid all the startup troubles, they 'leased' the rights to FXCM's services:
" In January 2003, FXCM entered into a strategic partnership with Refco Group, who is now a minority shareholder. Refco is the world's largest non-bank FCM and is an acknowledged leader in execution and clearing services for global, exchange-traded derivatives. Refco Group is a diversified financial services organization with over $20 billion in assets, 2,400 employees and operations in 14 countries." http://www.fxcm.com/about-fxcm.jsp
Refco has 'white label' brokers such as ACM: http://www.ac-markets.com/
Here in Canada and the US, individual bank accounts are guaranteed against loss — bank failure to a maximum of C$60,000/US$100,000 (?), no such guarantees are provided for 'investments'.
In the UK where FXCM have an office, there's the 'Financial Services Compensation Scheme' which protects:
" deposits, insurance policies, insurance broking (for business on or after 14 January 2005), investment business and mortgage advice and arranging (for business on or after 31 October 2004)."
" The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of authorised financial services firms." http://www.fscs.org.uk/
" Investments: £48,000 per person. 100% of the first £30,000 and 90% of the next £20,000."
The above also applies to 'spread betting' companies.
The FSCS as an organization of 'last resort' means after the individual has attempted to recover 'lost' funds through 'normal' methods including legal action.
While FXCM are the only (?) international retail online fx company, HO in New York USA, offices in Hong Kong, Tokyo and London, and perhaps provide the best customer service — toll free phones, realtime chat, http://www.alpari-idc.com/en/company/about-forex-broker.php for instance are a broker for traders all over the world — not just Russian clients and also highly regarded according to members on other forums who use Alpari as their broker.
FXCM UK accept International Clients: http://www.fxcm.co.uk/open-an-account.htm
There may be other countries that have a provision similar to the FSCS, Switzerland ?? and one would think the EU would have — perhaps you can find out and report back, however it's down to where the broker is located.
I had thought Refco partnered with FXCM after Refco wanted to open an fx service and avoid all the startup troubles, they 'leased' the rights to FXCM's services:
" In January 2003, FXCM entered into a strategic partnership with Refco Group, who is now a minority shareholder. Refco is the world's largest non-bank FCM and is an acknowledged leader in execution and clearing services for global, exchange-traded derivatives. Refco Group is a diversified financial services organization with over $20 billion in assets, 2,400 employees and operations in 14 countries." http://www.fxcm.com/about-fxcm.jsp
Refco has 'white label' brokers such as ACM: http://www.ac-markets.com/
Here in Canada and the US, individual bank accounts are guaranteed against loss — bank failure to a maximum of C$60,000/US$100,000 (?), no such guarantees are provided for 'investments'.
In the UK where FXCM have an office, there's the 'Financial Services Compensation Scheme' which protects:
" deposits, insurance policies, insurance broking (for business on or after 14 January 2005), investment business and mortgage advice and arranging (for business on or after 31 October 2004)."
" The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of authorised financial services firms." http://www.fscs.org.uk/
" Investments: £48,000 per person. 100% of the first £30,000 and 90% of the next £20,000."
The above also applies to 'spread betting' companies.
The FSCS as an organization of 'last resort' means after the individual has attempted to recover 'lost' funds through 'normal' methods including legal action.
While FXCM are the only (?) international retail online fx company, HO in New York USA, offices in Hong Kong, Tokyo and London, and perhaps provide the best customer service — toll free phones, realtime chat, http://www.alpari-idc.com/en/company/about-forex-broker.php for instance are a broker for traders all over the world — not just Russian clients and also highly regarded according to members on other forums who use Alpari as their broker.
FXCM UK accept International Clients: http://www.fxcm.co.uk/open-an-account.htm
There may be other countries that have a provision similar to the FSCS, Switzerland ?? and one would think the EU would have — perhaps you can find out and report back, however it's down to where the broker is located.
Chris Hood
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cecja said:
I don't trade spot FX any longer. That market, in contrast to FX futures, is unregulated and too risky for that reason. I learned that lesson the hard way when I was burned by Saxo Bank, which refused to honor a number of profitable trades in my account with it.
Retail online fx brokers are regulated in many countries, notably in the US of A by the Commodity Futures Trading Commission — the same regulators of the futures industry, and the Financial Services Authority in the UK.
Unlike futures trading where overloss can occur, such loss is prevented when trading fx tho individual brokers set the 'close trades' differently, and Stops are 'honored' to some extent again refer to broker.
There is however an interesting difference between futures and fx trading due to there not being a central exchange through which all trades are processed:
http://www.moneytec.com/forums/showthread.php?t=14476
edit: now there you go !
"Guarantee Fund for Depositors and Investors"
http://www.saxobank.com/?id=960&Lan=EN&Au=1&Grp=5
Unlike futures trading where overloss can occur, such loss is prevented when trading fx tho individual brokers set the 'close trades' differently, and Stops are 'honored' to some extent again refer to broker.
There is however an interesting difference between futures and fx trading due to there not being a central exchange through which all trades are processed:
http://www.moneytec.com/forums/showthread.php?t=14476
edit: now there you go !
"Guarantee Fund for Depositors and Investors"
http://www.saxobank.com/?id=960&Lan=EN&Au=1&Grp=5
Last edited:
JumpOff
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I don't think it is anything seriously wrong with the deviations between Oanda and Netdania or some other charting software.
The interbank forex is traded by many different market makers. Bloomberg may pick up something different from Telerate at any particular point in time.
The deviations between one market maker and another actually represent arbitrage opportunities.
The interbank forex is traded by many different market makers. Bloomberg may pick up something different from Telerate at any particular point in time.
The deviations between one market maker and another actually represent arbitrage opportunities.
Chris Hood
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Trdr said:
Saxo Bank's depositor protection affords Saxo's retail fx customers no protection other than for cash on deposit with Saxo. It does not apply to unrealized profits in fx positions, or to any part of deposited cash used to margin a position. Above all, the depositer protection does not prevent Saxo from manipulating the trades and orders of its retail fx customers, which is the risk that cost me in the Saxo account I traded.
The blurb and URL above about the Guarantee Fund are simply Saxo's hype. The blurb and URL are consistent with the latest, dishonest hype from Saxo, as follows, also taken from its website: “[L]local brokers are often not government regulated . . . . When dealing with Saxo Bank, you are dealing in fully regulated and reliable environment. We are subject to stringent financial reporting and specific regulations regarding client treatment. In many countries, foreign exchange market regulations are quite relaxed or non-existent putting you at serious risk from rogue brokers and disreputable dealers.”
The hype is dishonest because Saxo is the fx dealer -- "dealer" not broker, because Saxo is always the counterparty; your win is its loss -- whose retail customers are at serious risk. My earlier post on that subject, which describes my first-hand experience with Saxo, proves that.
Any customer of Saxo, which is based in Denmark, can contact Finanstilsynet, which is the Danish Financial Services Authority (FSA), to determine if I am correct that Saxo’s retail fx dealing customers are not protected by, and have no resort to, a Danish regulator or Danish law. When I made that same inquiry, immediately after I was burned, I learned that confidentiality protects Saxo even against requests to the Danish FSA from Saxo's own customers. Nor is Saxo registered with the UK FSA or the CFTC in the USA. Australia's FSA shut it down in Australia (something I wished I knew before trading with it).
Anyone with an interest can ask Saxo for a customer trading agreement to check that fine print in the agreement allows Saxo to price discriminate against individual customer orders and positions. That fine print was used against me when Saxo dishonored my profitable trades. Its charts showed that the limit prices of my trades had been met and breached, but Saxo refused to honor the orders.
Anyone intrepid enough to try his hand at FX trading should be able to determine if there are any protections, contractual or legal, for customers of Saxo. Surely, that is a smarter course than simply buying the dishonest hype.
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soccer_daemon
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Sax and GET Trading in Australia.
Hmmm, having read this thread, it really makes me suspicious now.
Being in Australia myelf, I received an email from Saxo a few months ago about
they no longer provide services to clients directly in Australia but rather refer
prospective clients to a so-called local agent, which basically just a white label
solution. The company is called GET Trading, not sure any Aussies here or
even trade with them.
Anyway, before the EUR/USD headed south last week, I had a limit order in
to long EUR/USD as 1.2015 limit and the pair had a low print of 1.2014 and
bounced back to 1.2110. To my surprise, my order didn't get filled! Having
read your experience, I an now getting really suspicious about this MM now.
Can anyone please tell me which MM is the most reputable to go with ? There
is CMC in Australia as well, offering lower spread too. Or is Oanda still the
best to go with ?
Thanks
SD
Hmmm, having read this thread, it really makes me suspicious now.
Being in Australia myelf, I received an email from Saxo a few months ago about
they no longer provide services to clients directly in Australia but rather refer
prospective clients to a so-called local agent, which basically just a white label
solution. The company is called GET Trading, not sure any Aussies here or
even trade with them.
Anyway, before the EUR/USD headed south last week, I had a limit order in
to long EUR/USD as 1.2015 limit and the pair had a low print of 1.2014 and
bounced back to 1.2110. To my surprise, my order didn't get filled! Having
read your experience, I an now getting really suspicious about this MM now.
Can anyone please tell me which MM is the most reputable to go with ? There
is CMC in Australia as well, offering lower spread too. Or is Oanda still the
best to go with ?
Thanks
SD
Chris Hood said:
Chris Hood
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Saxo beat me on limit orders three times in my second week of trading. In each case the limit price was breached with room to spare -- I mean total pips that were multiples of the normal spread! Yet Saxo refused to honor the orders.
I had been assured prior to opening the account that the real-money Saxo Trader worked identically to the demo Saxo Trader. Not once was a profitable limit order on the demo trade dishonored. And I used the demo for over one year, making more than a thousand trades on it. Indeed, my confidence in Saxo -- which proved worthless -- was grounded in the demo experience.
Almost as soon as I began with real money, Saxo began jobbing my orders. My stops were filled instantly every time, but the limit orders never were filled instantly -- there was always a lag, as if the Saxo dealing desk was waiting to decide whether to give me the trade. And, of course, as said, profitable limit orders were not even honored in three instances.
The explanation is simple: as the counterparty, Saxo would have lost money if it had filled my profitable orders. It made money with every stop, which is why all stops were filled instantly.
I had been assured prior to opening the account that the real-money Saxo Trader worked identically to the demo Saxo Trader. Not once was a profitable limit order on the demo trade dishonored. And I used the demo for over one year, making more than a thousand trades on it. Indeed, my confidence in Saxo -- which proved worthless -- was grounded in the demo experience.
Almost as soon as I began with real money, Saxo began jobbing my orders. My stops were filled instantly every time, but the limit orders never were filled instantly -- there was always a lag, as if the Saxo dealing desk was waiting to decide whether to give me the trade. And, of course, as said, profitable limit orders were not even honored in three instances.
The explanation is simple: as the counterparty, Saxo would have lost money if it had filled my profitable orders. It made money with every stop, which is why all stops were filled instantly.
soccer_daemon
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Ok, can anyone shed some light on which broker/MM to go with ?
1) CMC
2) Oanda
3) FXCM
Thanks
SD
1) CMC
2) Oanda
3) FXCM
Thanks
SD
Why not have an account with all three? Besides the differences in their bid-ask spreads, if the 3 market makers quote different prices at the same moment in time they may be good for arbitrage,( assuming your computer and internet connections can be fast enough).
neil
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soccer_daemon said:
Try Oanda.com and have a look at www.elitetrader.com (similar to T2W but USA based). Look under "brokers" and "Forums (scroll down to "forex").
I have fxcm because they have a London office and accept GBP accounts.
