Imagine a FOREX TRADERS ASSOCIATION. Imagine the Power | Forex Factory

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Imagine a FOREX TRADERS ASSOCIATION. Imagine the Power

  • #1
  • First Post: May 30, 2007 1:41pm May 30, 2007 1:41pm
This is a topic that deserves attention for good reason. Because retail Forex is such a free-for-all, what it all boils down to after all of the accusations, confusion and whining, is that Traders need an advocacy group. Traders need and association or a union to educate and represent them.

Imagine this scenario:

You have an situation with your broker where you think that there may be an illegal or unethical action on their part. You log on to "Forex Traders Association"(imaginary entity) and fill out a form. Then after a review period, the association contacts you and tells you if what they did was legal or ethical. If it is not, the association would officially contact the brokerage in writing on your behalf to request resolution. The brokerage would have the opportunity to correct the situation and/or make a statement of policy or position on the matter.

This would be powerful on several fronts. It would:

1. Make the broker aware that this situation is being taken seriously and is not some poor helpless small time trader to be brushed under the carpet and forgotten

2. Let the broker know that everyone in the association would be aware of thier behavior and/or policies.

3. Inform the broker that they are dealing with industry legal experts and cannot buffalo you with double talk and made up rules

4. Show the broker that they are vulnerable to real legal action by an association who is fully funded with it own big scary lawyers.

Image it. Imagine the power. The broker/trader relationship would be redifined forever.

FXO
Profit is where readiness meets Opportunity
  • #2
  • May 30, 2007 2:00pm May 30, 2007 2:00pm
This is actually a really good idea.

I figure you need a bouncer type dude to help as well. I am 6' 280 and it ain't all chub neither...
Mr. Trend
  • #3
  • May 30, 2007 2:02pm May 30, 2007 2:02pm
I think youmay just be onto something there......a grass roots regulating group with some real teeth........
a sort of stopgap untill this market is truly regulated.
Same Whore .... Different Dress
  • #4
  • May 30, 2007 2:02pm May 30, 2007 2:02pm
FXO,

I like the way you're thinking...but unionizing would take money and LOTS of effort.

Any idea on how this org would be supported?

And don't we already have something like this in the form of the NFA?

Quoting FXopportunist
This is a topic that deserves attention for good reason. Because retail Forex is such a free-for-all, what it all boils down to after all of the accusations, confusion and whining, is that Traders need an advocacy group. Traders need and association or a union to educate and represent them.

Imagine this scenario:

You have an situation with your broker where you think that there may be an illegal or unethical action on their part. You log on to "Forex Traders Association"(imaginary entity) and fill out a form. Then after a review period, the association contacts you and tells you if what they did was legal or ethical. If it is not, the association would officially contact the brokerage in writing on your behalf to request resolution. The brokerage would have the opportunity to correct the situation and/or make a statement of policy or position on the matter.

This would be powerful on several fronts. It would:

1. Make the broker aware that this situation is being taken seriously and is not some poor helpless small time trader to be brushed under the carpet and forgotten

2. Let the broker know that everyone in the association would be aware of thier behavior and/or policies.

3. Inform the broker that they are dealing with industry legal experts and cannot buffalo you with double talk and made up rules

4. Show the broker that they are vulnerable to real legal action by an association who is fully funded with it own big scary lawyers.

Image it. Imagine the power. The broker/trader relationship would be redifined forever.

FXO
  • #5
  • May 30, 2007 2:02pm May 30, 2007 2:02pm
Quoting Mr Trend
This is actually a really good idea.

I figure you need a bouncer type dude to help as well. I am 6' 280 and it ain't all chub neither...
We'll just call you Guido.....LOL
Same Whore .... Different Dress
  • #6
  • May 30, 2007 2:29pm May 30, 2007 2:29pm
Quoting Mr Trend
This is actually a really good idea.

I figure you need a bouncer type dude to help as well. I am 6' 280 and it ain't all chub neither...
Chuck Norris
Seriously though, it seems a good idea.
  • #7
  • May 30, 2007 4:49pm May 30, 2007 4:49pm
I think before we all start thinking how great it would be to have such a service maybe get some people together that know a descent bit of info on the subject . Form a small group of knoledgable people and start small instead of hoping that one day a QUALITY service will just pop out of the ground. Maybe anyone interested in such a group post on this thread and see what happens. It is a wonderful idea and could easily even make the people that do this some money even.

just my 2 pips

Ghost
Ghost Swoopen in for my pips while no one is lookin !!
  • #8
  • May 30, 2007 6:06pm May 30, 2007 6:06pm
Replied to the other thread, but I'll post it here too.

"Forex traders do have an association thats main goal is the protection of the client.

CFTC

In my experience, the NFA is there to make examples of the offending party and regulate the market makers according to their rules. The NFA cares little about the best interest of the client.

I have seen the CFTC step in front of the NFA and reverse NFA's course for the betterment of the clients involved."
The basis of a democratic state is liberty. ~ Aristotle
  • #9
  • May 30, 2007 7:48pm May 30, 2007 7:48pm
I can have my attorney set up a non profit " traders union " the best way to fund it would be to send out a fourm letter to all the retail brokers. Get the brokers to finance it. Afterall it would be in there benifit to have an agency to resolve disputes between clients and brokers before the NFA gets involved. one dispute resolution using this method would save them bundles....

complaints could be entered in a web fourm and " outstanding brokers" would get to use the agencys seal of approval in there marketing. Kinda like the BBB or JD ratings.

Benifits to the brokers...
More cost effective dispute resolution
Marketing

Benifits to the client...
helps picking the right broker
dispute resolution

Everyone wins ... why isint there something like this already?
Keep it simple stoopid....
  • #10
  • May 31, 2007 6:20am May 31, 2007 6:20am
I considered that funding route as a possiblitiy also Kurka. My only fear with that format is that it could quickly become corrupted. The only way that it would not is if it were a non profit and there was an infrastructure of accountability.

FXO
Profit is where readiness meets Opportunity
  • #11
  • Jun 1, 2007 6:18am Jun 1, 2007 6:18am
Quoting FXopportunist
This is a topic that deserves attention for good reason. Because retail Forex is such a free-for-all, what it all boils down to after all of the accusations, confusion and whining, is that Traders need an advocacy group. Traders need and association or a union to educate and represent them.

Imagine this scenario:

You have an situation with your broker where you think that there may be an illegal or unethical action on their part. You log on to "Forex Traders Association"(imaginary entity) and fill out a form. Then after a review period, the association contacts you and tells you if what they did was legal or ethical. If it is not, the association would officially contact the brokerage in writing on your behalf to request resolution. The brokerage would have the opportunity to correct the situation and/or make a statement of policy or position on the matter.

This would be powerful on several fronts. It would:

1. Make the broker aware that this situation is being taken seriously and is not some poor helpless small time trader to be brushed under the carpet and forgotten

2. Let the broker know that everyone in the association would be aware of thier behavior and/or policies.

3. Inform the broker that they are dealing with industry legal experts and cannot buffalo you with double talk and made up rules

4. Show the broker that they are vulnerable to real legal action by an association who is fully funded with it own big scary lawyers.

Image it. Imagine the power. The broker/trader relationship would be redifined forever.

FXO
Why not just trade with a regulated broker through CME??? 1 pip spreads, $5 round turns ( all included ), segregated funds in customer name......
Proper Prior Planning Prevents Piss Poor Performance
  • #12
  • Jun 4, 2007 11:32pm Jun 4, 2007 11:32pm
why? NFA fail?
  • #13
  • Jun 5, 2007 12:40am Jun 5, 2007 12:40am
Quoting FxJarhead
Why not just trade with a regulated broker through CME??? 1 pip spreads, $5 round turns ( all included ), segregated funds in customer name......
segregated funds is not allowed by NFA, so no US broker can offer that, and if a broker offer that, it is through European bank.
(reference is IBFX client support, so confirmation is needed)
  • #14
  • Jun 5, 2007 10:53am Jun 5, 2007 10:53am
Quoting lalilo
segregated funds is not allowed by NFA, so no US broker can offer that, and if a broker offer that, it is through European bank.
(reference is IBFX client support, so confirmation is needed)
Key word is "regulated" broker or exchange, and CME. Not the brokers you see here on FF.
Lind-Waldock, FC Stone, FIMAT, PFG, Rosenthal Collins Group, Alaron, ADM....to name a few.....yes some have seperate FX divisions now.

Now they aren't going to give you 400-1 leverage either, margin requirements are set by exchange, also minimum for EC ( eurofx ) is 125,000 contract.....so don't expect mini's. They are regulated by NFA.
Proper Prior Planning Prevents Piss Poor Performance
  • #15
  • Last Post: Aug 26, 2010 10:32pm Aug 26, 2010 10:32pm
Quoting FXopportunist
This is a topic that deserves attention for good reason. Because retail Forex is such a free-for-all, what it all boils down to after all of the accusations, confusion and whining, is that Traders need an advocacy group. Traders need and association or a union to educate and represent them.

Imagine this scenario:

You have an situation with your broker where you think that there may be an illegal or unethical action on their part. You log on to "Forex Traders Association"(imaginary entity) and fill out a form. Then after a review period, the...
There already is a Trader's Association started by GreenTrader. It is a business association and advocates issues on behalf of Retail Forex traders. Here is the link to their webpage:

http://www.greencompany.com/Association/index.shtml

They are not a lobby group and do not donate to political parties or organizations but they fight on behalf of traders. They have already advocated successfully against the Financial-Transaction tax to be levied on the Retail Forex traders. Now they are currently working on fighting off the ridiculous decrease of leverage from 100:1 to 10:1.

I am not soliciting for them here but since you mentioned a need for a Forex Traders' Association so I thought I mention them to you.

Hope this helps.
Make your losses in demo. Earn your profits live.
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