FX Trading in Europe under threat - act now | Page 7 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

No Thread, No Threat, In Trend Trading 24 replies

Triple Threat Trading - It's all about the Context 3 replies

Now you see it, ... Now you don't 2 replies

Am i under under-capitalized? 6 replies

Attachments: FX Trading in Europe under threat - act now
Exit Attachments

FX Trading in Europe under threat - act now

  • #121
  • Feb 1, 2018 4:42pm Feb 1, 2018 4:42pm
Quoting tomorton
{quote} As soon as people start talking about bucket shops I know they're talking about something they know nothing about. Since the only people who know anything about "bucket shops" are those who run them or their clients, why would I take the advice of either of those two groups? If you work for one, we have nothing in common. If you trade with one, you're a mug, even by your own words. If you don't do either, how do you back up what you say?

buck·et shop
ˈbəkət ˌSHäp/
noun
informal derogatory
plural noun: bucket shops

  1. an unauthorized office for speculating in stocks or currency using the funds of unwitting investors.

merriam webster dictionary

Does it take an owner or client to know what is a bucket shop? You just got triggered because you clearly have a conflict of interest with retail traders or either too ignorant to understand what is 'incentive1= volume/size incentive (spread +commission) and incentive2=taking the other side incentive OTC (Gain + finance). The minute you deposit your cash they'll use that as collateral for their financing turn they 'brokers'. So, go get a decent education in the markets before addressing me, cause clearly you are terribly lost--I'll start ignoring you btw ....don't have time for losers.

They wanna push you off the path with their frequency wires
  • #122
  • Feb 1, 2018 5:21pm Feb 1, 2018 5:21pm
Quoting Quantum3
{quote} buck·et shop ˈbəkət ˌSHäp/ noun informal derogatory plural noun: bucket shops an unauthorized office for speculating in stocks or currency using the funds of unwitting investors. merriam webster dictionary Does it take an owner or client to know what is a bucket shop? You just got triggered because you clearly have a conflict of interest with retail traders or either too ignorant to understand what is 'incentive1= volume/size incentive (spread +commission) and incentive2=taking the other side incentive OTC (Gain + finance)....

The SB company I trade with doesn't take the other side of traders' positions, and neither did the others I dealt with going back to 2003. The current firm is UK-based and FCA-regulated: they make their money from spreads and overnight charges. NB: stop-running is completely outlawed by the FCA. I don't know where other people trade or who they trade with, but I'm very sure of my position.

It doesn't help the real SB and CFD traders who are profitable and quite happy with current leverage rates like I am when the ill-informed and prejudiced start giving opinions abut these firms being bucket shops. How would they know?
  • #123
  • Feb 1, 2018 6:44pm Feb 1, 2018 6:44pm
What? The term bucket shop has been around for decades, arguably over a century old. You’re clueless, obviously very inexperienced and very defensive, I wonder why that is? Let me guess, you’re plotless and potless; haven’t got the funds to trade. Any mug trading through a bucket shop SB firm is a epsilon minus semi moron, anyone trading FX through an SB firm needs sectioning, for their own safety.

Quoting tomorton
{quote} As soon as people start talking about bucket shops I know they're talking about something they know nothing about. Since the only people who know anything about "bucket shops" are those who run them or their clients, why would I take the advice of either of those two groups? If you work for one, we have nothing in common. If you trade with one, you're a mug, even by your own words. If you don't do either, how do you back up what you say?
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #124
  • Feb 1, 2018 11:44pm Feb 1, 2018 11:44pm
Quoting tomorton
{quote} The SB company I trade with doesn't take the other side of traders' positions, and neither did the others I dealt with going back to 2003. The current firm is UK-based and FCA-regulated: they make their money from spreads and overnight charges. NB: stop-running is completely outlawed by the FCA. I don't know where other people trade or who they trade with, but I'm very sure of my position. It doesn't help the real SB and CFD traders who are profitable and quite happy with current leverage rates like I am when the ill-informed and prejudiced...
It's rather naive to think that your average "UK-based and FCA-regulated" and all "regulated" forex brokerage companies worldwide does not have strategic plans on how to extract more money from their customer's account.
For example, the "UK-based and FCA-regulated" broker that I trade with charges a truly obscene swap rate, they do it because they can get away with it..
  • #125
  • Feb 2, 2018 12:45am Feb 2, 2018 12:45am
Quoting triphop
{quote} It's one of only two downloads at the foot of the page.
Thank you but the icon disappeared. I sent my feedback via the other web.
  • #126
  • Feb 2, 2018 1:51am Feb 2, 2018 1:51am
Quoting Spreadbetter
What? The term bucket shop has been around for decades, arguably over a century old. You’re clueless, obviously very inexperienced and very defensive, I wonder why that is? Let me guess, you’re plotless and potless; haven’t got the funds to trade. Any mug trading through a bucket shop SB firm is a epsilon minus semi moron, anyone trading FX through an SB firm needs sectioning, for their own safety. {quote}

Have you traded with a bucket shop? If so, please name them and shame them.

I trade through a UK-registered SB provider, they are FCA regulated and very legitimate. There's nothing to fear trading with such a firm except the regular difficulties of trading that everyone encounters however they trade. I am profitable and have a 5-figure account thank you.
  • #127
  • Feb 2, 2018 1:57am Feb 2, 2018 1:57am
Quoting Mingary
{quote} It's rather naive to think that your average "UK-based and FCA-regulated" and all "regulated" forex brokerage companies worldwide does not have strategic plans on how to extract more money from their customer's account. For example, the "UK-based and FCA-regulated" broker that I trade with charges a truly obscene swap rate, they do it because they can get away with it..

I don't trade through forex brokers. Many of them are not really brokers anyway, they are bookmakers who do not participate in the forex market as such. I can't comment on either.

I trade through a spreadbet provider who clearly have no foot in the forex market but that suits me. I'm profitable, have been spreadbetting since 2003 and I have a 5-figure account. I made a 5-figure profit in January. The firms I have used have been UK-based and regulated and have never behaved in any way in an underhand manner. They don't trade against their clients.

ESMA restrictions on SB leverage are unnecessary and based on some ignorance of the business.
  • #128
  • Feb 2, 2018 3:02am Feb 2, 2018 3:02am
Sigh, have you any idea how naive you appear? A five figure account is nothing, peanuts, but enough to have a bit of fun with. Look buddy it’s this simple; spreadbetting firms profit from your loss, they’re market makers. Do yourself a favour, pick up your pennies, close your account and move it to an FX broker who operates a fairer STP/ECN model, there’s enough on here who only profit from the small spread/commission they charge.

It’s by no means perfect, but a world away from the U.K. firms who want you to lose, get too profitable and they won’t hedge versus you, they’ll close your account. Why? Because they know anyone winning on their proprietary platforms must be cheating...

The irony is delicious and shouldn’t be lost on you; you get cheated, but they feel cheated and call a foul when you win regularly. Seriously anyone trading FX through an SB firm is unhinged and delusional.


Quoting tomorton
{quote} Have you traded with a bucket shop? If so, please name them and shame them. I trade through a UK-registered SB provider, they are FCA regulated and very legitimate. There's nothing to fear trading with such a firm except the regular difficulties of trading that everyone encounters however they trade. I am profitable and have a 5-figure account thank you.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #129
  • Feb 2, 2018 3:05am Feb 2, 2018 3:05am
Oh Dear, I’m suddenly reminded why I cba posting on these forums anymore, less than a day in and I’m reading this kind of truly depressing fantasy; you made a five figure sum, from your five figure sum, in one month...you’re a trading god and no mistake.

Quoting tomorton
{quote} I don't trade through forex brokers. Many of them are not really brokers anyway, they are bookmakers who do not participate in the forex market as such. I can't comment on either. I trade through a spreadbet provider who clearly have no foot in the forex market but that suits me. I'm profitable, have been spreadbetting since 2003 and I have a 5-figure account. I made a 5-figure profit in January. The firms I have used have been UK-based and regulated and have never behaved in any way in an underhand manner. They don't trade against their...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #130
  • Feb 2, 2018 3:34am Feb 2, 2018 3:34am
Hi everyone, I am new to the community, and I wish to add a question regarding the margin topic (something that I wonder if i am missing out on).

Let's assume that my broker gave me a 1:10 leverage, and my "Good faith" deposit is only $2000, which means that I can control up to $20,000 (right?).

If I were to open a big trade that has a $10,000 Margin Requirement, does it mean that my available margin is: $20,000-$10,000= $10,000 (right?)

Now, this is were I get a little bit confused, how do you calculate your total margin limit?
What happen if the trade that i opened (the one that has a $10,000 margin requirement) is exceeding my "Good faith deposit" (a draw-down that is greater than my $2000 deposit)?

Does the broker close the trade? or does my "Free margin" allow the trade to go on?
I am risking only 50% of my margin, so does it mean that the margin will allow me to have a draw-down that is greater than $2000?

I looked over the web and found the formulas to calculate margin requirement, but I am not sure about the issue.

The formulas:

  1. Margin= 1/ Leverage
  2. Equity- Equity = Balance + Floating Profit/Loss
  3. Margin level- Margin Level = (Equity / Margin) x 100
  4. Free margin- Free Margin = Equity - Margin



Any help would be very appreciated .

  • #131
  • Feb 2, 2018 8:12am Feb 2, 2018 8:12am
Spreadbetter, I'm not sure why the vitriol to someone you presumably have never met who you think is less experienced? He might be, I have no idea, but you don't go around slapping waiters do you? Or maybe you do.

SB is a legal wrapper around either MM *or* STP models, it has no bearing on execution but if your experience, your gut, the breeze in the wind tells you different it's fine. I won't judge you.

So to recap:
- This isn't a thread about the best legal framework for trading.
- it's not even a thread about how most bucketshop practices since i've been trading - nigh on 10 years- have mostly (but not exclusively) been cleaned up.
- it's not even a thread about how spreads have tightened, execution is better than I've ever known it, and how brokers are more competitive than ever before. It's certainly not going to be a thread about how your odds of success are actually greater today than they've ever been before. There's plenty of gurus around here to steer you in the wrong direction for all that.

This is purely about *your* futures in trading. Maybe you've already called it a day. That's cool. People come and go all the time. But if you're committed, you know what to do.
  • #132
  • Feb 2, 2018 8:13am Feb 2, 2018 8:13am
Quoting Alcopop
{quote} Thank you but the icon disappeared. I sent my feedback via the other web.
Good man!
  • #133
  • Feb 2, 2018 8:32am Feb 2, 2018 8:32am
Quoting WallStreet99
Hi everyone, I am new to the community, and I wish to add a question regarding the margin topic (something that I wonder if i am missing out on). Let's assume that my broker gave me a 1:10 leverage, and my "Good faith" deposit is only $2000, which means that I can control up to $20,000 (right?). If I were to open a big trade that has a $10,000 Margin Requirement, does it mean that my available margin is: $20,000-$10,000= $10,000 (right?) Now, this is were I get a little bit confused, how do you calculate your total margin limit? What happen if the...
My maths barely scrapes past gcse level, but keep this simple - you're trading notional $10k. Divide that by your leverage, that's your margin so at 10:1 it's $1000 you'd need in your account to open the trade right? If the value of that $10k trades falls by $1000 (leaving $1k in your account) your margin called and the position will close out automatically.

Explicity, no, you can't have a drawndown bigger than your account. In fact, it can't be bigger than your margin requirement for the trade. Clear?
  • #134
  • Feb 2, 2018 9:34am Feb 2, 2018 9:34am
Quoting Spreadbetter
Sigh, have you any idea how naive you appear? A five figure account is nothing, peanuts, but enough to have a bit of fun with. Look buddy it’s this simple; spreadbetting firms profit from your loss, they’re market makers. Do yourself a favour, pick up your pennies, close your account and move it to an FX broker who operates a fairer STP/ECN model, there’s enough on here who only profit from the small spread/commission they charge. It’s by no means perfect, but a world away from the U.K. firms who want you to lose, get too profitable and they won’t...

What has been your experience with UK SB firms please?
  • #135
  • Feb 2, 2018 10:18am Feb 2, 2018 10:18am
Quoting Quantum3
{quote} buck·et shop ˈbəkət ˌSHäp/ noun informal derogatory plural noun: bucket shops an unauthorized office for speculating in stocks or currency using the funds of unwitting investors. merriam webster dictionary Does it take an owner or client to know what is a bucket shop? You just got triggered because you clearly have a conflict of interest with retail traders or either too ignorant to understand what is 'incentive1= volume/size incentive (spread +commission) and incentive2=taking the other side incentive OTC (Gain + finance)....

I can't speak much about bucket shops, I've never traded with on. Have you traded with a bucket shop and can you name it please?
  • #136
  • Feb 2, 2018 2:19pm Feb 2, 2018 2:19pm
Quoting triphop
{quote} My maths barely scrapes past gcse level, but keep this simple - you're trading notional $10k. Divide that by your leverage, that's your margin so at 10:1 it's $1000 you'd need in your account to open the trade right? If the value of that $10k trades falls by $1000 (leaving $1k in your account) your margin called and the position will close out automatically. Explicity, no, you can't have a drawndown bigger than your account. In fact, it can't be bigger than your margin requirement for the trade. Clear?
As far as I know margin call is not close of trade. They close at pre set percentages of margin , not always 100%Your draw down can be bigger than your account , thats called negative balance.... /swissi ?/
  • #137
  • Feb 2, 2018 4:16pm Feb 2, 2018 4:16pm
Delusional bollox, once again making me realise that this forum hasn’t changed, during the circa 15 years I’ve known it; still chokka full of know nothing, clueless blowhards.

Quoting triphop
SB is a legal wrapper around either MM *or* STP models, it has no bearing on execution but if your experience, your gut...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #138
  • Edited Feb 3, 2018 12:38am Feb 2, 2018 11:54pm | Edited Feb 3, 2018 12:38am
I would like a retail forex enthusiast to explain to me why retail forex should not be banned ?

1) It was created as a bucket shop in the early 90's using the sports betting model.
2) It serves NO beneficial economic purpose to society
3) its users are addicted, lose money, lives are destroyed

If as a society we try to protect ouserlves against other's harmful activities such as tobacco, prostitution, fire arms, drugs, alcohol, etc ... would it not be wise to ban Retail Forex from the face of the earth ?
Or at least smack a heavy, heavy "sin tax" on it.
  • #139
  • Feb 3, 2018 12:59am Feb 3, 2018 12:59am
Quoting Mingary
I would like a retail forex enthusiast to explain to me why retail forex should not be banned ? 1) It was created as a bucket shop in the early 90's using the sports betting model. 2) It serves NO beneficial economic purpose to society 3) its users are addicted, lose money, lives are destroyed If as a society we try to protect ouserlves against other's harmful activities such as tobacco, prostitution, fire arms, drugs, alcohol, etc ... would it not be wise to ban Retail Forex from the face of the earth ? Or at least smack a heavy, heavy "sin tax"...
We are not very good at protecting ourselves from any of those activities, are we?. Bans not working. Education is.

Evrything in life that has benefits for one, harms the other. Everything.
  • #140
  • Feb 3, 2018 1:10am Feb 3, 2018 1:10am
Quoting AndyU
{quote} We are not very good at protecting ourselves from any of those activities, are we?. Bans not working. Education is. Evrything in life that has benefits for one, harms the other. Everything.
Everything ?

What are the benefits of Crack addiction for the user ?
0 traders viewing now