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Is this true?

  • Post #1
  • Quote
  • First Post: Jan 6, 2006 10:13am Jan 6, 2006 10:13am
following quote:

Quote
FXCM stopped one of my friends from trading altogether. It was after he began to trade TOO profitably on a regular basis.

FXCM would never admit it, but the true reason was because FXCM in fact takes THE OTHER SIDE of their client's positions. The true income of FXCM is not generated by that ridiculous profit from spread, but by taking the other side of their clients' positions.

Since the VAST majority of forex traders fail, ALL those money go to FXCM. Once you start to trade profitably, they cut you off, since then you are in fact getting THEIR money - you are putting them on the WRONG side of your position. Losing trader puts them on the RIGHT side of his position, thus FXCM is happy to invite newer and newer losers.

I don't know about it, but I could imagine they've got some software when is the majority going this or that way and based on this information their taken actions can be much better.

comments?
It is true that companies like FXCM take the other side of a trade. Then on the off chance that your trades go good, they put that dollar amount in your account. They do not have to pay out unless you withdraw.

They ofcourse figure that you will keep on trading and eventually lose the money before pulling it out.
- SAFE TRADING MONEY DUCK
I don't want to say that my quote is non-plus-ultra true, but I bet there are some scalplers around who are doing a good job.
And I hate the fact that these people get whiped out or have to fear to get whiped out by the broker, just because they are doing a good job and the broker isn't.
Quoting qweet
I don't want to say that my quote is non-plus-ultra true, but I bet there are some scalplers around who are doing a good job.
And I hate the fact that these people get whiped out or have to fear to get whiped out by the broker, just because they are doing a good job and the broker isn't.
Forget about trying to scalp with FXCM. They'll will put you on "manual" execute.

Yes I agree, they are crooks. That's why it's best to have a true broker without a trading desk.

JohnFX
Quoting qweet
following quote:



I don't know about it, but I could imagine they've got some software when is the majority going this or that way and based on this information their taken actions can be much better.

comments?
oh gosh, more bugaboo broker tales. if you think your friend is trading big enough for FXCM to care about his P/L, you arent seeing the full picture here. yes, FXCM may take the other side of your trade, and yes FXCM may not like scalpers, but how is that different from any other FX broker out there? there are a few that dont take the other side of the trade, but why should that even matter to a small retail trader?

in my opinion FXCM is one of the best brokers. they get a lot of heat because they are so big, kinda like walmart. but i have traded with them for years and they rank with the best of them. a little advice for novice traders, dont waste your time being paranoid about your broker. just go with someone reputable and you will get a square deal in the long run. everytime some little issue comes up, its not reason to start with the conspiracy theories. broker issues is part of life as a trader, thats why you dont hear experienced traders bitching and complaining about brokers. you have to learn to deal with and work around the issues, thats part of being a trader. there is no perfect broker, and if you expect that you will always end up disapointed, plus you will waste your time and energy raging at brokers, instead of focusing on your trading.
Relax and be happy.
Quoting merlin
oh gosh, more bugaboo broker tales. if you think your friend is trading big enough for FXCM to care about his P/L, you arent seeing the full picture here. yes, FXCM may take the other side of your trade, and yes FXCM may not like scalpers, but how is that different from any other FX broker out there? there are a few that dont take the other side of the trade, but why should that even matter to a small retail trader?

in my opinion FXCM is one of the best brokers. they get a lot of heat because they are so big, kinda like walmart. but i have traded with them for years and they rank with the best of them. a little advice for novice traders, dont waste your time being paranoid about your broker. just go with someone reputable and you will get a square deal in the long run. everytime some little issue comes up, its not reason to start with the conspiracy theories. broker issues is part of life as a trader, thats why you dont hear experienced traders bitching and complaining about brokers. you have to learn to deal with and work around the issues, thats part of being a trader. there is no perfect broker, and if you expect that you will always end up disapointed, plus you will waste your time and energy raging at brokers, instead of focusing on your trading.
Well said Merlin - I couldn't agree more!!

Simon
Quoting DrRock
Well said Merlin - I couldn't agree more!!

Simon
How about qualifying that statement?
One of the most irritating occurrences here at FF, for me, are the "I couldn't agree more", "Well said", and the "Theres gold in those words" type posts.
Qualify your remarks, for heavens sakes, otherwise they appear to be nothing but accolade singing. (which by the way, gets really nauseating)
I was here, here I was. Was I here? Yes I was!
Quoting merlin
oh gosh, more bugaboo broker tales. if you think your friend is trading big enough for FXCM to care about his P/L, you arent seeing the full picture here. yes, FXCM may take the other side of your trade, and yes FXCM may not like scalpers, but how is that different from any other FX broker out there? there are a few that dont take the other side of the trade, but why should that even matter to a small retail trader?

in my opinion FXCM is one of the best brokers. they get a lot of heat because they are so big, kinda like walmart. but i have traded with them for years and they rank with the best of them. a little advice for novice traders, dont waste your time being paranoid about your broker. just go with someone reputable and you will get a square deal in the long run. everytime some little issue comes up, its not reason to start with the conspiracy theories. broker issues is part of life as a trader, thats why you dont hear experienced traders bitching and complaining about brokers. you have to learn to deal with and work around the issues, thats part of being a trader. there is no perfect broker, and if you expect that you will always end up disapointed, plus you will waste your time and energy raging at brokers, instead of focusing on your trading.
hey I happen to enjoy reading bugaboo broker tales. the more exaggerated and dramatic the better!

Why do you think that FXCM is one of the best brokers? I mean, what do you like about them?
I've been thinking about joining for a while... a couple of their policies don't fully suite me, but i'm still considering.
Quoting JohnFX
Forget about trying to scalp with FXCM. They'll will put you on "manual" execute.

Yes I agree, they are crooks. That's why it's best to have a true broker without a trading desk.

JohnFX
I stand by what I said because of experience. I used FXCM. If you are a very short term trader as myself and FXCM is on the other side of your trade, their first priority is how much they can gain on their end in the trade, pure and simple. They may be OK for long term traders because obviously they can't stall or move the market in the long term. But, I made my statement based on facts with regards to "SCALPING" and from my own experience. FXCM is big and they have the clout. They are also known to go after stops.

JohnFX
Quoting merlin
a little advice for novice traders, dont waste your time being paranoid about your broker. just go with someone reputable and you will get a square deal in the long run. everytime some little issue comes up, its not reason to start with the conspiracy theories. broker issues is part of life as a trader, thats why you dont hear experienced traders bitching and complaining about brokers. you have to learn to deal with and work around the issues, thats part of being a trader. there is no perfect broker, and if you expect that you will always end up disapointed, plus you will waste your time and energy raging at brokers, instead of focusing on your trading.
Hi Merlin,
I agree with you. Go with someone reputable, that is why I dropped FXCM in my broker selection. To me , reputation among traders is far more important that review done by some introduing broker or forums which are supported by brokers. To be frank, I have been doing some research before opening an account, reading through postings in different forums. And FXCM is kinda "notorious".
Go with someone reputable, that is why I am with Oanda.

I do not have negative feeling against FXCM, really, I am restating what I had read from forums...

Good day
I'm not a wine drinker but I've heard people say this a lot: "Drink what you like." It's not about what wine is supposed to go with what food you're eating, it's about drinking what you want and what you like. I like FXCM. They're easy for me to use, and they've always been there with answers to my questions. So use the broker that you like. I've tried 3 and picked FXCM. Not that the other two sucked or were bad for some reason, but simply because I like FXCM better than them.
Because helping each other is a good thing.
  • Post #12
  • Quote
  • Edited 5:08pm Jan 7, 2006 5:05pm | Edited 5:08pm
Quoting Isotonic
dude...i've given accolade's similar to drrock's to your posts in the past!

i think you're being way too uptight over this!
You may actually be right, I may be going overboard a little, but still......
To complement somone on a good post is one thing but to say that you agree, is to endorse that persons post.

With this post in particluar its quite relevant and this is why:
Merlin shared his opinion about FXCM and attempted to discounted any futher criticism. Of course what he didn't disclose was that there is an inherent conflict of interest occurring due to the fact that FXCM is on the preferred brokers list and is clearly one of the sponsors of this site. Therefore Merlin probably feels obligated to defend FXCM's reputation. What ever the case is, one cannot view Merlin's post as unbaised.

So When Dr. Rock said "I agree", he is endorsing Merlins views, but can only really do so if he too is in a similar position as Merlin. My guess he is not, in which case I'd like to know why he gave is endorsement.

I think this is a clear case of not really considering all the angles and that is why Dr. Rock should qualify his post. Who know's, I may be wrong and it may turn out Dr. Rock is an employee of FXCM or something.
I was here, here I was. Was I here? Yes I was!
That why I trade FX cash with IB, as they are not
into spreads but small comish only while spread is
1-3 pips on most pairs.
http://www.interactivebrokers.com/en...p?ib_entity=ca
Quoting SterlingTDR
Merlin shared his opinion about FXCM and attempted to discounted any futher criticism. Of course what he didn't disclose was that there is an inherent conflict of interest occurring due to the fact that FXCM is on the preferred brokers list and is clearly one of the sponsors of this site. Therefore Merlin probably feels obligated to defend FXCM's reputation. What ever the case is, one cannot view Merlin's post as unbaised.
sure, my comments on FXCM could be seen as biased. but take out the FXCM part of my post, and the rest is unbiased. "the rest" is more important than what i said about FXCM.

i have a saying...

you either play the game, or complain about the rules. which will it be?

those who complain about thier broker are complaining about the rules. all brokers have weaknesses, and all brokers have strengths. it is up to you to avoid the weakness and seek out the strength. im not saying that you could/should trade with any ole crappy broker. but any reputable broker with tight spreads (and FXCM is one of them) can be used to your advantage. you really need to trade with 4 or 5 brokers before you start to realize that they all have their quarks, and some are better to use in certain circumstances. if there was a perfect broker, i would be trading with them. but there's not, so i trade with many, and choose who i will execute my trade with based on which offers the best environment for the particular trade. spend your time playing the game, because the alternative is a hopeless path.
Relax and be happy.
Quoting merlin
sure, my comments on FXCM could be seen as biased. but take out the FXCM part of my post, and the rest is unbiased. "the rest" is more important than what i said about FXCM.

i have a saying...

you either play the game, or complain about the rules. which will it be?

those who complain about thier broker are complaining about the rules. all brokers have weaknesses, and all brokers have strengths. it is up to you to avoid the weakness and seek out the strength. im not saying that you could/should trade with any ole crappy broker. but any reputable broker with tight spreads (and FXCM is one of them) can be used to your advantage. you really need to trade with 4 or 5 brokers before you start to realize that they all have their quarks, and some are better to use in certain circumstances. if there was a perfect broker, i would be trading with them. but there's not, so i trade with many, and choose who i will execute my trade with based on which offers the best environment for the particular trade. spend your time playing the game, because the alternative is a hopeless path.
Well Said! I couldn't agree more! There's gold in those words!

What else could I add?

HJ
HeavyJ -"Posterboy for Spellchecker!" "Will work for pips!"
Quoting merlin
i have a saying...

you either play the game, or complain about the rules. which will it be?
True but it would be nice to know the rules up front and without having to pay through the nose for them. To imply that those who question the rules are whining, or something to that effect, impedes the learning of these rules and actually promotes the fantasy that this is a "fair" game.
I was here, here I was. Was I here? Yes I was!
Quoting SterlingTDR
True but it would be nice to know the rules up front and without having to pay through the nose for them. To imply that those who question the rules are whining, or something to that effect, impedes the learning of these rules and actually promotes the fantasy that this is a "fair" game.
fair game? i'm not sure if you'll find such a thing in the financial markets. everybody is competing for any edge they can get, including the dealers. i would expect them to do everything they can get away with to make profit. if they didn't make big profits from retail traders, fewer would be in business, resulting in less competition, larger spreads, and less choice for us (which would allow them to dicate terms even more!)

why would you want a fair game anyway? this is money we're talking about... not a game of social tennis. when it comes to money, i'd much rather have an unfair game in my favour, or no game at all (unless i felt like gambling).

there are a lot of technicalities, but i think there is only one real one rule: make money from market participants any way you can within legal boundaries (or beyond if you can find loopholes). It can be brutal, because we’re talking livelihoods! and understandably, opposing players don’t make life easy for each other!
For another point of view, have a look here



http://forexfacts.port5.com/index.htm
Quoting qweet
following quote:



I don't know about it, but I could imagine they've got some software when is the majority going this or that way and based on this information their taken actions can be much better.

comments?
So what?? FXCM stopped him from trading because he is trading TOO profitable...So what..?? Are they going to freeze his funds?? I don't think they can do this...He can easily withdraw all his money, close the account and start all over with another market maker or broker...He will probably make a fortune before he is blacklisted in the forex market (If something like that really exists), and when he is blacklisted, he has got his whole family to open accounts under their names

Not really an issue, the broker or market maker doesn't really bring success or failure...He is not successfull because he is trading with FXCM, so he can be successfull and profitable with any other broker or market maker out there, so that's not actually an issue to talk about...


Thanks,

Nader
Quoting SterlingTDR
You may actually be right, I may be going overboard a little, but still......
To complement somone on a good post is one thing but to say that you agree, is to endorse that persons post.
Yep, you are going overboard.

Quote

With this post in particluar its quite relevant and this is why:
Merlin shared his opinion about FXCM and attempted to discounted any futher criticism. Of course what he didn't disclose was that there is an inherent conflict of interest occurring due to the fact that FXCM is on the preferred brokers list and is clearly one of the sponsors of this site. Therefore Merlin probably feels obligated to defend FXCM's reputation. What ever the case is, one cannot view Merlin's post as unbaised.

So When Dr. Rock said "I agree", he is endorsing Merlins views, but can only really do so if he too is in a similar position as Merlin. My guess he is not, in which case I'd like to know why he gave is endorsement.

I wasn't giving an endorsement to FXCM, merely agreeing with Merlin's views about conspiracy theory and complaining about brokers hitting stops etc. I personally reckon that it is all crap! Mainly endorsing the statement 'a little advice for novice traders, dont waste your time being paranoid about your broker'

Quote

I think this is a clear case of not really considering all the angles and that is why Dr. Rock should qualify his post. Who know's, I may be wrong and it may turn out Dr. Rock is an employee of FXCM or something.

I am not an employee of FXCM. I am associated with a company who is an IB to FXCM (they are also an IB to Sonray Capital Markets, HomeBroker, CMC)and I have a few FXCM accounts and a few Oanda accounts for that matter. I like FXCM as a broker but to be honest, when I read Merlin's post, I didn't really see it as endorsing FXCM, more about saying find a broker you like and use them and don't be paranoid and think the broker is out to get you.

I was obviously reading the post in a completely different way to what you were because of a recent discussion I had on another forum with someone about a stock broker.

I hope that qualifies it for you.

Simon
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