Broker finds new way to gouge clients | Forex Factory

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Broker finds new way to gouge clients

  • #1
  • First Post: Mar 10, 2020 9:42pm Mar 10, 2020 9:42pm
If the bad spreads weren't enough...

"...beginning in April 2020, we will be changing the way in which currency conversions of profits, losses and trading costs take place on the platform.

This means that realized P&L, fees and/or commissions related to trading instruments which have a different quote currency to your account currency will now incur a conversion charge. This charge is based on the prevailing mid-price of the applicable FX spot rate for the conversion, plus an additional spread of 0.5%."

(from Oanda Australia today).

So very soon Oanda will be taking a 0.5% cut out of all your profits AND adding 0.5% to all your losses (where the quote currency doesn't match the account currency)!!!
  • #2
  • Mar 11, 2020 12:40am Mar 11, 2020 12:40am
Is this good or bad signs of them? Thanks
  • #3
  • Mar 11, 2020 1:51am Mar 11, 2020 1:51am
Unless you like more fees - It's bad.
  • #4
  • Mar 11, 2020 7:16pm Mar 11, 2020 7:16pm
Quoting Fizzerr
If the bad spreads weren't enough... "...beginning in April 2020, we will be changing the way in which currency conversions of profits, losses and trading costs take place on the platform. This means that realized P&L, fees and/or commissions related to trading instruments which have a different quote currency to your account currency will now incur a conversion charge. This charge is based on the prevailing mid-price of the applicable FX spot rate for the conversion, plus an additional spread of 0.5%." (from Oanda Australia today). So very soon...
u should seek clarification, because market wide, base ccy for fx is USD this is fixed globally.
even if you trade GBPJPY, settlement of profits and losses are based on USD. so if your trading account is USD are you affected? or are you only not affected if your account is in GBP.

unless they are specifically refereing to indexes or cfd on stocks, then ccy is that of the specific country's exchange.
  • #5
  • Mar 12, 2020 1:01am Mar 12, 2020 1:01am
The wording is very clear.

If you trade GBPJPY and your account is in USD you will be taxed.

If you trade GBPUSD and your account is in AUD you will be taxed.

etc etc.
  • #6
  • Mar 15, 2020 4:39pm Mar 15, 2020 4:39pm
https://www.forexfactory.com/showthr...2#post12810092
  • #7
  • Mar 16, 2020 11:11pm Mar 16, 2020 11:11pm
Quoting Fizzerr
If the bad spreads weren't enough... "...beginning in April 2020, we will be changing the way in which currency conversions of profits, losses and trading costs take place on the platform. This means that realized P&L, fees and/or commissions related to trading instruments which have a different quote currency to your account currency will now incur a conversion charge. This charge is based on the prevailing mid-price of the applicable FX spot rate for the conversion, plus an additional spread of 0.5%." (from Oanda Australia today). So very soon...
I could understand this decision if exchange rate volatility (or liquidity disruptions) would be as high as in Bitcoin. But currencies are quite stable and liquid, don't see to a reason charge clients. Do they offer trading as CFDs or it involves real exchange of currencies?
  • #8
  • Mar 17, 2020 6:19am Mar 17, 2020 6:19am
Quoting bottomhigh
{quote} Do they offer trading as CFDs or it involves real exchange of currencies?
They are a market-maker so they don't even go into the real market to execute your trade. Of course if their order-book is lop-sided they might offload risk externally but for most small fish they'll be pocketing the full spread PLUS your 0.5% donation to their coffers.

and they have the hide to call themselves a "fair platform" aiming to offer the "best pricing"!!

What a joke.
  • #9
  • Mar 18, 2020 12:59am Mar 18, 2020 12:59am
Quoting Fizzerr
{quote} They are a market-maker so they don't even go into the real market to execute your trade. Of course if their order-book is lop-sided they might offload risk externally but for most small fish they'll be pocketing the full spread PLUS your 0.5% donation to their coffers. and they have the hide to call themselves a "fair platform" aiming to offer the "best pricing"!! What a joke.

Then they don't deserve our attention and money. Free market will eventually punish them for high costs.
  • #10
  • Mar 18, 2020 6:36am Mar 18, 2020 6:36am
If you are in the US you are in the mercy of Oanda, Forex.com..etc
This just demonstrates how much monopoly these companies have and how they are taking advantage by milking as much money as possible from the poor traders that are stuck with them.

Spot Forex trading for retail clients is dead for US residents/clients.
  • #11
  • Mar 21, 2020 10:14pm Mar 21, 2020 10:14pm
these forex brokers are worse than casinos. Even someone as evil as a casino has no commission games
  • #12
  • Mar 23, 2020 4:00pm Mar 23, 2020 4:00pm
Quoting FX2Life
If you are in the US you are in the mercy of Oanda, Forex.com..etc This just demonstrates how much monopoly these companies have and how they are taking advantage by milking as much money as possible from the poor traders that are stuck with them. Spot Forex trading for retail clients is dead for US residents/clients.
Just trade futures bro
i lose money for a living
  • #13
  • Mar 25, 2020 8:19am Mar 25, 2020 8:19am
Quoting tylerbose
{quote} Just trade futures bro
What makes you think I am not.
  • #14
  • Mar 25, 2020 9:13am Mar 25, 2020 9:13am
I find futures (especially index futures) to be vastly superior in tradability than forex.
  • #15
  • Mar 25, 2020 9:11pm Mar 25, 2020 9:11pm
Clients always have to loose , that is this whole business . You may win few trades but can not take out money on regular base for living. Trading is involved with your mind once your mind is disturbed you can not win.

In any part of world you go you will find advertisements like make money , honesty , so many good promises . But the fact and 100% truth is unless something good is said you can not be held to deceive .

Life can not be lived w/o trust, faith etc is truth . But you will be deceived in the name of these weapons only it is universal truth

Art of fishing is the Art of deceiving.

Those who have become habitual of trading will stay in this business even on loosing in the hope of winning. That brokers knows well.

In fact I would like to be official Govt Brokers from National Govt of a clients country
Neither a Bro Nor a Pro I am I
  • #16
  • Oct 2, 2020 3:31am Oct 2, 2020 3:31am
OK, I live in the U.S. and brought my money back from a foreign platform because I had worked my way up to a point where I could handle the low leverage and still trade successfully. I did my homework and settled on forex.com because of the low roll over rate. I get my first statement and these f@#%*^'s are charging a 25% "conversion rate" fee on a U.S. dollar based account trading USD/CAD. Wow. Just wow. Somehow they omitted that little detail from their Trading Costs web page. Is their a U.S. platform that won't completely BEND YOU OVER?

Sorry for the rant. Probably should have waited until I cooled off.

Rex
  • #17
  • Edited 9:40pm Oct 13, 2020 9:26pm | Edited 9:40pm
Quoting Rex Tradewell
OK, I live in the U.S. and brought my money back from a foreign platform because I had worked my way up to a point where I could handle the low leverage and still trade successfully. I did my homework and settled on forex.com because of the low roll over rate. I get my first statement and these f@#%*^'s are charging a 25% "conversion rate" fee on a U.S. dollar based account trading USD/CAD. Wow. Just wow. Somehow they omitted that little detail from their Trading Costs web page. Is their a U.S. platform that won't completely BEND YOU OVER? Sorry...

One of the gr8ness of USA is , the govt is responsible for and actionable for any scam the citizen whether settled or original citizen but should be business in the land and law premises of US.

That is why most broker says , should not be citizen of USA to trade with them.

Even though USA govt has scammed my money worth $20,000 from Zeekrewards site in the name of money laundry than so called FED.
Worlds biggest Nuclear Power can not be trust worthy when money matter
What of than small brokers and small country .

From the very begging of life money has been forcibly taken from weaker to stronger section of society.
Rest all is coaching , to keep alive scammers .
Neither a Bro Nor a Pro I am I
  • #18
  • Last Post: Oct 14, 2020 12:47am Oct 14, 2020 12:47am
brokers are finding new ways to takeout money from clients pocket
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