Discussions on new traders

Magos said:
is not about me Shakone is about the new traders.

When you are saying about regulation and non-regulated brokers you need to define pros and the cons? not being absolute!!!

also another nice topic is onshore and offshore brokers!
Click to expand...

Ok.

There are no pros to trading with an unregulated broker. Never do it. There is not a single benefit. Only ever trade with someone regulated.

There are 1000's of cons to trading with an unregulated broker, and you risk losing all your money. It would be madness to do so.
 
Shakone said:
Ok.

There are no pros to trading with an unregulated broker. Never do it. There is not a single benefit. Only ever trade with someone regulated.

There are 1000's of cons to trading with an unregulated broker, and you risk losing all your money. It would be madness to do so.
Click to expand...

Can you expand on that? I only came up with 877 myself.

Thank you in advance for your anticipated cooperation.

Peter
 
Magos said:
1. Freebies
2. Fixed spreads if possible! having no or partial understand why spreads increase at illiquidity or volatile periods
3. Regulation, people are concerned with regulation! (maybe due to marketing?). If the broker is not listed in the UK or the US then regulation causes an issue! Mainly due to confusion on the channels where traders can report their claims, i.e. formal procedure when the broker/dealer does not satisfy the traders needs.
4. Independent providers on broker/dealers such as forexpeacearmy.com provide an inside to the broker/dealers credibility mainly using real examples.
.
Click to expand...

1. No
2. No such thing, there are exchange spreads and manipulated spreads (and prices).
3. There are no benefits to using an unregulated broker, only the broker
benefits from no regulation, they try to convince punters there are benefits through marketing, there are no benefits.
End of.
4. Most ratings are worthless due to shill reviews.
 
very strong arguments, what is fascinating is the impact of marketing in results!
 
I find it very fascinating whilst everyone wants regulation, more and more brokers leave the NFA/CFTC as RFEDs ( Retail Foreign Exchange Dealers); too much regulation sometimes is constraining or costly!

Flexible jurisdictions like Cyprus, Malta, etc. on the one hand provide some sort of guidelines for brokers/dealers but on the other hand how much do they protect traders?
 
Day 3 - Summary

retail traders care mostly about:

1. Unregulated brokers a hot topic mostly correlated with brokers who do fraught (we must identify those)!

2. Due diligence importance: (as of Liquid validity reference):
2.a. Regulation
2.b. Contact address
2.c. Website domain check
2.d. Useful links

3. When broker/dealers offer freebies! the terms and conditions should be reviewed in details (traders should pay attention to the small letters).
4. People still do not understand how spreads are generated; they believe that broker/dealers are always in control i.e. crossing networks are not understood! Having a limited understanding on the literature of Internet trading.
5. Marketing and promotions are widely used by unregulated brokers taking advantage of existing rules in highly regulated environments.
6. Ratings on broker/dealers are highly influenced by their own budget resulting to no credibility at all!
 
Magos said:
Day 3 - Summary

3. When broker/dealers offer freebies! the terms and conditions should be reviewed in details (traders should pay attention to the small letters).
Click to expand...

that was part of your day 2 summary. is there a running list you are keeping?
also, none of the things you have mentioned are of any importance to me, so when you say retail traders care about....this is based on the 2 or 3 people having responded?
not exactly proportional representation
 
malaguti said:
that was part of your day 2 summary. is there a running list you are keeping?
also, none of the things you have mentioned are of any importance to me, so when you say retail traders care about....this is based on the 2 or 3 people having responded?
not exactly proportional representation
Click to expand...

No there is no running list, just generating one.

What things are important to you ? please share, let's address them.

the people who have responded although a small number (based on qualitative methods), represent a vast number of posts due to their reputation.
 
malaguti said:
that doesn't tell me how you are going to address any of my concerns, that just tells me what you have.
Click to expand...

Let's, make it easy for you.
When you share your concerns,I will try at my utmost powers to help you resolve them.
 
Magos said:
Let's, make it easy for you.
When you share your concerns,I will try at my utmost powers to help you resolve them.
Click to expand...

ok, lets start with one for now. The prices quoted by the brokers should be more reflective of the underlying market. I have a real time data feed, and I double check that feed from time to time, and yet the broker does not reflect that price as accurately as I would like

now Magos with your experience and intuition, what can you possibly do to change my brokers prices?
 
malaguti said:
ok, lets start with one for now. The prices quoted by the brokers should be more reflective of the underlying market. I have a real time data feed, and I double check that feed from time to time, and yet the broker does not reflect that price as accurately as I would like

now Magos with your experience and intuition, what can you possibly do to change my brokers prices?
Click to expand...

The prices are usually quoted by an ECN (Electronic communication network) from a broker/dealer getting a smaller spread than the traditional EBS ICAP since he is quoting small volume. In this case is better for the broker/dealer to quote thousands rather than a standard 5M (5 million) a side.

The underlying market if you are talking about FOREX is mainly OTC (over-the-counter) and depending to the liquidity of your broker/dealers quotes vary from broker/dealer to broker/dealer (mainly depending on how many LPs (liquidity providers) and relationships with LPs).

If the spread you receive is naked i.e. without mark-up's then it should reflect and be correlated with the interbank market i.e. your real-time feed if you have something similar to REUTERS 3000 or EBS ICAP.

If someone has introduced you he might be acting as your IB (Introducing Broker) and charging you fees (an addition on your spread).

I suggest to use a pure ECN model with no mark-up’s and just commission fees from a reputable broker to be correlated with the underlying market or if your are really big just trade with REUTERS 3000 or EBS ICAP.
 
Magos said:
Day 3 - Summary

retail traders care mostly about:

1. Unregulated brokers a hot topic mostly correlated with brokers who do fraught (we must identify those)!

2. Due diligence importance: (as of Liquid validity reference):
2.a. Regulation
2.b. Contact address
2.c. Website domain check
2.d. Useful links

3. When broker/dealers offer freebies! the terms and conditions should be reviewed in details (traders should pay attention to the small letters).
4. People still do not understand how spreads are generated; they believe that broker/dealers are always in control i.e. crossing networks are not understood! Having a limited understanding on the literature of Internet trading.
5. Marketing and promotions are widely used by unregulated brokers taking advantage of existing rules in highly regulated environments.
6. Ratings on broker/dealers are highly influenced by their own budget resulting to no credibility at all!
Click to expand...

1,2 and 3 have been discussed. 4,5 and 6 seem to have just been brought up by you from nowhere.

You were asked to provide examples of marketing, but as far as I can see, you didn't.

Can you explain who has been discussing 4, 5 and 6? I must have missed that somewhere?
 
Shakone said:
1,2 and 3 have been discussed. 4,5 and 6 seem to have just been brought up by you from nowhere.

You were asked to provide examples of marketing, but as far as I can see, you didn't.

Can you explain who has been discussing 4, 5 and 6? I must have missed that somewhere?
Click to expand...

Shakone, I hope the following find's you well.

4. People still do not understand how spreads are generated; they believe that broker/dealers are always in control i.e. crossing networks are not understood! Having a limited understanding on the literature of Internet trading.

28.09.2013, 9:58AM - Liquid validity: 2. No such thing, there are exchange spreads and manipulated spreads (and prices).

5. Marketing and promotions are widely used by unregulated brokers taking advantage of existing rules in highly regulated environments.

28.09.2013, 9:58AM - Liquid validity: 3. There are no benefits to using an unregulated broker, only the broker

28.09.2013, 1:43PM - Magos: I find it very fascinating whilst everyone wants regulation, more and more brokers leave the NFA/CFTC as RFEDs ( Retail Foreign Exchange Dealers); too much regulation sometimes is constraining or costly!

Flexible jurisdictions like Cyprus, Malta, etc. on the one hand provide some sort of guidelines for brokers/dealers but on the other hand how much do they protect traders?

6. Ratings on broker/dealers are highly influenced by their own budget resulting to no credibility at all!

28.09.2013, 9:58AM - Liquid validity: 4. Most ratings are worthless due to shill reviews.

In regards to promotions people should be careful some examples:
100% percent welcome bonus
Cash Rebate Bonus
Up to $500 deposit bonus
$10 special deposit bonus
$15 bonus on deposit
20% deposit bonus

Please read the terms and conditions carefully.
 
Day 4 - Summary

retail traders care mostly about:

1. Experience retail traders care about specific options i.e. spreads, spread dynamics, correlation with interbank market, etc. This proofs that retail traders want to learn more.
2. The ECN model is not understood in depth by the retail trades due to OTC characteristics of the asset class. Maybe the explanation that each broker/dealer ECN pricing differs mainly due to its liquidity partners, resulting to different spread characteristics can shed some light.
3. Retail traders have questions about how and what brokers/dears do and how they operate, I blame inexperienced and unprofessional personnel working for the broker/dealers! Or maybe the message about the broker/dealer model is not explained correctly.
4. Marketing examples, which I mentioned before, might be too good to be true! Promotions can mislead retail traders to open accounts and trade!
 
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