Problem with my broker regarding the news trading! | Forex Factory

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Problem with my broker regarding the news trading!

  • #1
  • First Post: Dec 14, 2006 12:17am Dec 14, 2006 12:17am
I had a call yesterday from my broker. They asked me to stop to trade during the news or they'll have to close my account!
Does someone knows this problem and what did you do? Is it legal to close my account without my autorization?
  • #2
  • Dec 14, 2006 12:22am Dec 14, 2006 12:22am
Quoting OwenT
I had a call yesterday from my broker. They asked me to stop to trade during the news or they'll have to close my account!
Does someone knows this problem and what did you do? Is it legal to close my account without my autorization?
Yes they can do that. You must be profitable otherwise they most likely wouldn't worry about it. Can you name the broker you are talking about and to the extent you were news trading (avg. position size)? I have several friends who have had this happen to them as well. Depending on who you are using and how you are trading the spike I may be able to recommend an alternate.
  • #3
  • Dec 14, 2006 12:23am Dec 14, 2006 12:23am
Quoting mmccormac
Yes they can do that. You must be profitable otherwise they most likely wouldn't worry about it. Can you name the broker you are talking about and to the extent you were news trading (avg. position size)? I have several friends who have had this happen to them as well. Depending on who you are using and how you are trading the spike I may be able to recommend an alternate.
My guess is you were trading the news spike via Bloomberg terminal and your broker starts with an "O". Just a guess.
  • #4
  • Dec 14, 2006 12:25am Dec 14, 2006 12:25am
I don't know if I can name it but if not... it's Oanda and I traded lots of 2,400,000 units on cable with a news service that gave me the deviation.
  • #5
  • Dec 14, 2006 12:27am Dec 14, 2006 12:27am
nearly correct mmccormac
  • #6
  • Dec 14, 2006 1:08am Dec 14, 2006 1:08am
Please excuse my ignorance but I think a broker cannot tell you when to trade and when not. He can try to tell you not to trade during news but that is all. One more question for mmccormac. Why would it make a difference to use the Bloomberg terminal? I watch the Bloomberg tv channel and I do not think the terminal could have the news before the tv channel (or could it?).<o></o>

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  • #7
  • Dec 14, 2006 1:31am Dec 14, 2006 1:31am
That's what I thought also capsmart but it seems that I was wrong and it seems also that they can close my account if they want to. If someone has a solution for me...I can may be tell them that I will not do it again, stay quiet during one month and restart with smaller amounts
  • #8
  • Dec 14, 2006 1:39am Dec 14, 2006 1:39am
Quoting capsmart
Please excuse my ignorance but I think a broker cannot tell you when to trade and when not. He can try to tell you not to trade during news but that is all. One more question for mmccormac. Why would it make a difference to use the Bloomberg terminal? I watch the Bloomberg tv channel and I do not think the terminal could have the news before the tv channel (or could it?).<?xml:namespace prefix = o /><o></o>

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the bloomberg terminal gets you the news about a second sooner than most everybody else. this is partly why it costs $1700/month. new traders use this to get in before the spike. this is why brokers don't want people trading the news.
"i wake up in the morning, and i piss excellence"
  • #9
  • Dec 14, 2006 2:13am Dec 14, 2006 2:13am
Dude.. pardon me for saying but.. why dont you trade with Currenex or FXall or someone that welcomes 24 lots?

Seems like you are just trying to suck Oanda dry. They are an MM, they can do what they want in this unregulated market. Dont complain about it. Go to a currenex whitelabel.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #10
  • Dec 14, 2006 2:32am Dec 14, 2006 2:32am
Quoting StockKJay
Dude.. pardon me for saying but.. why dont you trade with Currenex or FXall or someone that welcomes 24 lots?

Seems like you are just trying to suck Oanda dry. They are an MM, they can do what they want in this unregulated market. Dont complain about it. Go to a currenex whitelabel.
most retail traders stick to brokers like oanda because of their slow feed. HE could give currenex a go but I guarantee unless he's got a very fast connection to their servers and a fully automated process he's not going to get any fills. Very soon most brokers will simply stop taking orders around news
  • #11
  • Dec 14, 2006 2:59am Dec 14, 2006 2:59am
Quoting sccz97
most retail traders stick to brokers like oanda because of their slow feed. HE could give currenex a go but I guarantee unless he's got a very fast connection to their servers and a fully automated process he's not going to get any fills. Very soon most brokers will simply stop taking orders around news
That was pretty much my point. You cant complain about Oanda, he is the one getting out the best.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #12
  • Dec 14, 2006 3:50am Dec 14, 2006 3:50am

OwenT

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Charting Markets into the Future...MǎҖ€¥.
  • #13
  • Edited 4:12am Dec 14, 2006 4:06am | Edited 4:12am
There may be a solution that no one is considering:

Owen, you may not have to worry about this problem pretty soon, b/c you are using one of the two major news service providers, and both will be shut down very soon by Bloomberg and/or Reuters for violation of their agreements for giving out the property of BB for a fee to people who do not subscribe to BB themselves. I wouldn't like it if someone was giving away my property for free to hundreds of subscribers for a fee. Would you?

Once both of those greedy bastards are shut down and possibly prosecuted by BB, your problem will be solved, b/c there will be no one to give you the feed and auto-click software to trade the news, and thus get scolded by Oanda.

One of those idiots actually sent out an email saying his "SNS" was faster than BB and don't waste your money on BB, when you can get it from him for a fraction of the cost and faster, and the idiot uses BB for his feed. The people over at BB didn't take this too good, once they saw a copy of the email.

The only other alternative will be for you to subscribe to BB for $1700 a month and execute your own trades.
  • #14
  • Dec 14, 2006 4:07am Dec 14, 2006 4:07am
MaXeY ???
  • #15
  • Dec 14, 2006 4:14am Dec 14, 2006 4:14am
fxmasterjedi, if it is true it's ok for me. I'm ok to pay for bloomberg if I'm sure that I can trade the news with quite big amounts.
  • #16
  • Dec 14, 2006 4:17am Dec 14, 2006 4:17am
Quoting OwenT
fxmasterjedi, if it is true it's ok for me. I'm ok to pay for bloomberg if I'm sure that I can trade the news with quite big amounts.
That very same idiot is the reason that Oanda has jacked up the spreads and getting people either scolded or thrown out. You can thank your resident idiot for calling Richard Olsen the Pres. of Oanda and telling him he wanted to bring over hundreds of people to news trade at Oanda.

As you can see, that went over really well with spreads of 10+ at news and threats being sent out daily.
  • #17
  • Dec 14, 2006 4:18am Dec 14, 2006 4:18am
fxmasterjedi,

if he's faster than bloomberg, that means that he's got another feed from another news service that is faster than bloomberg no?
  • #18
  • Edited 4:23am Dec 14, 2006 4:22am | Edited 4:23am
Quoting OwenT
fxmasterjedi,

if he's faster than bloomberg, that means that he's got another feed from another news service that is faster than bloomberg no?
He's not faster. The moron uses BB. That's another reason BB is going after him. How would you feel if someone was discounting your product while actually using it to generate $50K+/mo. off of it?

BB is the fastest. BB is almost a second faster than Reuters which is second fastest.
  • #19
  • Dec 14, 2006 4:29am Dec 14, 2006 4:29am
Wow it seems that with BB you have an eternity to make your decision then...

So my only problem is to find a broker that accept a news trader.
  • #20
  • Dec 14, 2006 4:31am Dec 14, 2006 4:31am
Thx MaXeY,

for the moment I try to test MB but it seems very difficult to be filled.
IFX is a MM or a ECN?
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