Proper Regulation

[alan5616]

How I yearn to see the day when the spot forex market is regulated, if not fully, then for certain trading hours of the day. It is the most broker abused, financial market on the planet. This is how the scenario can play out after making a losing trade.

Customer: "I can't believe that I got stopped out @ 1.3008 on my long EUR/USD trade. The real time charts that I have, using your data, show that the price never dropped below 1.3015.

Broker: "Well, Sir, we use a number of banks, in order to give our clients the very best possible quotes at all times. Unfortunately, it isn't possible to provide tick by tick prices in a fast moving market. In fact, in your case, one of the banks that we use for our quotes was showing 1.3008/1.3010. I just want to assure that we are here to give you the best possible service and that your business is important to us"

Customer: "Can I ask which bank that was?"

Broker: "Hold on, let me check". (Pause for 2-5 mins) "Sorry to keep you waiting. It seems that this quote came from the Saudi Mogadishu Bank of Zimbabwe"

Customer "F******** F**********

Broker: "Thank you for calling A****xxx. Have a nice day"

OK, I've used some poetic licence here but, it doesn't change the fact that the relevant regulatory bodies in each country could stipulate which banks can quote for which markets and, just as importantly, the trading hours when this is permissable.

So many retail traders are getting defrauded, every day, by the veritable plethora of SBs and MMs that it's time things changed. At least US residents have a regulatory body with teeth (CFTC), who is not hesitant to come down hard on cheating brokers, such as FXCM. Unfortunately, we, in the UK, have the FSA, who give a whole new meaning to the words "ineffective" and "incompetent"

All change please!!!!

 

[Jack_Larkin]

Regulation alone won't stop an evil broker from being evil. I mean, sure it helps, but if regulation is the only thing holding back your broker from screwing you then you're with the wrong broker.

You just gotta stick to brokers who have a long standing reputation of acting fair and fixing customer service issues in a positive way.

 

[forker]

one would expect an experienced trader to know the markets aren't perfect. I have seen you b!tch about this over several threads. Certainly not a sign of an experienced trader. no offence

 

[hellrise]

Could someone explain to me like i'm 5 year old what exactly is going on with different quotes and brokers? I find this subject a bit confusing. Where do exactly the brokers get the quotes and why the sources are different?

 

[DionysusToast]

Broker: "Hold on, let me check". (Pause for 2-5 mins) "Sorry to keep you waiting. It seems that this quote came from the Saudi Mogadishu Bank of Zimbabwe"

lol!!!!

 

[The Leopard]

How I yearn to see the day when the spot forex market is regulated, if not fully, then for certain trading hours of the day. It is the most broker abused, financial market on the planet. This is how the scenario can play out after making a losing trade.

Customer: "I can't believe that I got stopped out @ 1.3008 on my long EUR/USD trade. The real time charts that I have, using your data, show that the price never dropped below 1.3015.

Broker: "Well, Sir, we use a number of banks, in order to give our clients the very best possible quotes at all times. Unfortunately, it isn't possible to provide tick by tick prices in a fast moving market. In fact, in your case, one of the banks that we use for our quotes was showing 1.3008/1.3010. I just want to assure that we are here to give you the best possible service and that your business is important to us"

Customer: "Can I ask which bank that was?"

Broker: "Hold on, let me check". (Pause for 2-5 mins) "Sorry to keep you waiting. It seems that this quote came from the Saudi Mogadishu Bank of Zimbabwe"

Customer "F******** F**********

Broker: "Thank you for calling A****xxx. Have a nice day"

OK, I've used some poetic licence here but, it doesn't change the fact that the relevant regulatory bodies in each country could stipulate which banks can quote for which markets and, just as importantly, the trading hours when this is permissable.

So many retail traders are getting defrauded, every day, by the veritable plethora of SBs and MMs that it's time things changed. At least US residents have a regulatory body with teeth (CFTC), who is not hesitant to come down hard on cheating brokers, such as FXCM. Unfortunately, we, in the UK, have the FSA, who give a whole new meaning to the words "ineffective" and "incompetent"

All change please!!!!

You are right, of course, but at the end of the day, so what? What do you want to do - change the world or make money?

The problem you talk about is only a problem if you allow it to be. If your SB / bucket shop is no good, move. If you can't find a good one, it's simple - don't use SB or bucket shops.

If spot forex is no good, trade futures on a real exchange. If you trade ES or NQ, the price is always what it is - there is no dispute.