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I'm done with FXDD

  • #21
  • Jan 11, 2008 11:17am Jan 11, 2008 11:17am
EFX is an ecn broker..but even they claim the danger of "trading news"

http://www.efxgroup.com/about-news-trading.php

basically, nobody wants to be in around news time even big banks...If you are a day trader try trading 1hr or so after news. But that 100pip difference is kind of screwy

Its not the news that matter, its' the reaction to the news.
  • #22
  • Jan 11, 2008 11:33am Jan 11, 2008 11:33am
Quoting hilmy83
EFX is an ecn broker..but even they claim the danger of "trading news"

http://www.efxgroup.com/about-news-trading.php

basically, nobody wants to be in around news time even big banks...If you are a day trader try trading 1hr or so after news. But that 100pip difference is kind of screwy

Its not the news that matter, its' the reaction to the news.
That's why you exploit price holes using arbitrage across several brokers!
In Charts We Trust!
  • #23
  • Jan 11, 2008 1:26pm Jan 11, 2008 1:26pm
Quoting hilmy83
basically, nobody wants to be in around news time even big banks...If you are a day trader try trading 1hr or so after news. But that 100pip difference is kind of screwy
I closed the only position I had several minutes before the BOE announcement, I would do it with any broker. But this huge difference, and then claiming it was the "interbank feed", and then cleaning the records in retrospective - these were the things that made me feel uneasy... At least, the withdrawal at FXDD is fast
sans peur et sans reproche
  • #24
  • Jan 11, 2008 3:38pm Jan 11, 2008 3:38pm
Quoting ilanr
I never trade during news. But if the spread widens by 80 p., as it happens with FXDD, a stop of an existing position can be hit unpredictably. This can happen, of course, with any type of broker, but I'm said that such crazy spikes are not common at "normal" brokers.
Yes it is undoubtedly sad that people see tons of erroneous price spikes and spread widening and continue to use a bucket shop like FXDD. A shop who's head of "institutional sales" once told me the reason they don't need to be registered with NFA is because they never send client funds to a third party. Meaning of course that the trades are never passed on to a liquidity providing bank or ECN. No wonder I heard stories about them not being able to afford to pay a money manager who made six million there. Sad thing is if he could make that much trading against them he could have probably made double at a real firm and actually got paid too! Unfortunately many people are so used to getting screwed by their current dealer that they view a better offering from a legitimate broker as being "too good to be true" and never switch firms. They tell themselves things like well at least I know how these guys screw me, and at least I know my money won't disappear over here. Then the firm gets shut down because they traded against the clients and can't afford to pay when the client actually akes money like FXLQ or Refco FX. When will these poor souls wake up? Probably only after a price spike has wiped out their account or the company is insolvent. Remember it's only a realized profit if it's in your hands, not on paper with a dealer that won't pay out.
  • #25
  • Jan 11, 2008 3:50pm Jan 11, 2008 3:50pm
Remember FXDD is not regulated so thay can do what ever they please to profit from their clients, the good news is they have run out of their 9 lives, the end is near.
  • #26
  • Jan 11, 2008 4:02pm Jan 11, 2008 4:02pm
Quoting KasperFX
Remember FXDD is not regulated so thay can do what ever they please to profit from their clients, the good news is they have run out of their 9 lives, the end is near.
what proof do u have of this? My money and other friends are there.
  • #27
  • Edited 4:07pm Jan 11, 2008 4:05pm | Edited 4:07pm
Quoting scottdkuehne
If you want a really decent MT4 broker you can trade news with check out Golden Contract. You can check them out here www.forextradersinc.com/company_golden.htm they have a fixed 1 pip spread
Thanks. I don't trade news, but the spreads they announce are really the best among MT4 brokers. BUT: a Russia-based company?? Maybe I'm prejudiced, but Cyprus sounds like a safe haven compared to RF. What if tomorrow Mr Putin decides that foreign investments should be nationalized?
sans peur et sans reproche
  • #28
  • Jan 11, 2008 7:30pm Jan 11, 2008 7:30pm
Quoting ilanr
Thanks. I don't trade news, but the spreads they announce are really the best among MT4 brokers. BUT: a Russia-based company?? Maybe I'm prejudiced, but Cyprus sounds like a safe haven compared to RF. What if tomorrow Mr Putin decides that foreign investments should be nationalized?
Your skepticism is fully warranted. I haven't found a single review of Golden Contract anywhere online. A 1-pip spread on the majors at all times with no commission is impossible. The domain was just registered 6 months ago. This has SCAM written all over it...
  • #29
  • Jan 11, 2008 11:18pm Jan 11, 2008 11:18pm
CME offers foreign exchange (FX) futures

http://www.cme.com/trading/prd/fx/
  • #30
  • Edited 11:50pm Jan 11, 2008 11:30pm | Edited 11:50pm
Quoting Trader KGB
Your skepticism is fully warranted. I haven't found a single review of Golden Contract anywhere online. A 1-pip spread on the majors at all times with no commission is impossible. The domain was just registered 6 months ago. This has SCAM written all over it...

If you have a question ask it, don't just assume something is a scam. If you knew anything about the subject your commenting on and not reacting out of fear of the unknown you would know that the company was just started by the people who run Water House Capital (I am sure you can find reviews on them)which is an Ib for major financial firms like Man Financial and also commodity clearing firms like Open Ecry. I can assure you companies like that would not want scammers IBing for them. Water House Capital is very big in Russia and even have classrooms around the country to teach new traders. That is why the registration is six months ago. The company was formed only a few months ago and has mainly foreign clients. This is probably why you haven't heard any reviews other than mine. I would like to point out that many reviews are biased anyways, especially if they come from the site of an IB such as Forex Bastards. In fact I hope you don't blindly believe what you hear or read and find things out for yourself. My suggestion is to open a small account and try out Golden Contract, their minimum account balance is only $10 so what do you have to lose? If they are a scam as you claim then no great loss, but on the other hand if you find they have value as I did it is well worth the effort to try them. Regarding Putin and what ifs, if it makes you feel any better you can fund your account by using the Bank of Belize which upholds banking secrecy and is not under Russia's control. The company was also founded in Belize so it is out of Russian jurisdiction in any event. Please if you have any other questions ask them before you jump to conclusions.
  • #31
  • Jan 12, 2008 1:53am Jan 12, 2008 1:53am
Quoting scottdkuehne
I would like to point out that many reviews are biased
Scott,

It is ironic that you brought up the aspect of biased reviews, considering you have a direct financial interest in promoting Golden Contract (given by the referral link you posted). As such, I'm going to take anything you have to say about them with a grain of salt.

I was agreeing with ilanr, in that there are several aspects about this broker which raise a red flag: the aforementioned lack of any external data on them (either pro or con), the aforementioned 6-month lifespan, the Belize funding account, and the 1-pip fixed spread on all majors.

First off, Belize. So an unregulated Russian broker is based & funded out of an offshore tax haven, that's supposed to add credibility? Give me a break..

Secondly, the spreads. As someone who trades on a host of retail & prime broker ECN platforms, I can assure you that even at the institutional level, a 1-pip spread on the likes of GBPUSD is far from a static constant. The notion of a static 1-pip spread on all majors, with no commission, is completely absurd, and only raises more red flags. Don't try to justify it by bringing up Crown, we both know what a scam outfit they are.

Your credibility in this matter is further brought into question by your previous post, where you mention traders you introduced using "500:1 margin to achieve 1000% weekly returns". Tales of vastly over-leveraged gamblers with pie in the sky returns aren't exactly a selling a point, unless you're referring to the only feasible revenue stream of this broker: account blowups.

If you want to trust your money to this Russian outfit with an account in Belize, by all means, don't let me stop you. But I would advise against violating forum rules by pitching your IB partnership with them.
  • #32
  • Edited 1:58am Jan 12, 2008 1:55am | Edited 1:58am
Quoting scottdkuehne
company was just started by the people who run Water House Capital (I am sure you can find reviews on them).
I'm not sure Water House Capital is a good recommendation. The opinions on this thread http://www.forex-tsd.com/metatrader-...hc-broker.html are rather varied. I demoed WHC for a couple of days, I didn't like the connection losses so abandoned them quickly.

Quoting scottdkuehne
The company was formed only a few months ago and has mainly foreign clients. This is probably why you haven't heard any reviews other than mine.
I googled Russian Interenet (I read Russian) and I saw lots of announcements/ads, but not a single review.

Quoting scottdkuehne
minimum account balance is only $10 so what do you have to lose?
Time. Proper testing of a broker is time-consuming and distracts you from trading. In order to consider live account testing, I have to have a good prior basis. 1 pip spread on 6 majors and no commission sounds too good to be true. Maybe Golden Contract is really the best of brokers, but just as I try not to be the first one who jumps on a new trend , I'd rather wait and see some more people using them.
sans peur et sans reproche
  • #33
  • Jan 12, 2008 2:10am Jan 12, 2008 2:10am
Quoting lcfxtrader
CME offers foreign exchange (FX) futures

http://www.cme.com/trading/prd/fx/
Thanks . However, I've hardly mastered forex, and I still feel that I have many things to improve in my trading, so going to a new market is probably too early for me...
sans peur et sans reproche
  • #34
  • Jan 14, 2008 7:46am Jan 14, 2008 7:46am
Quoting ilanr
I used FXDD for live trading for almost two years. I knew they were not regulated by any authority, I knew their customer support was polite, but absolutely incompetent, I knew their spreads would widen up to 60-90 pips before major news releases, there would be re-quotes, slippages and frozen server during high volatility periods. I perceived all this more or less normal for a broker and learned to live with this.

However, today my patience has come to an end. At 04:30 EST, during the UK Trade Balance release, the spread on GBPUSD went up to 31 pips for 3 seconds. These are secondary news recently, so I didn't think of protecting myself before the release. A buy stop order was triggered, and its 26 p SL was also triggered instantaneously... I checked with a couple of other MT4 brokers - no one seemed to have such a widening.

I wrote to the customer support. I was answered that FXDD "do not actually make the market", but rather "we receive our prices directly from the Interbank market", so I was advised not to leave positions during news hours. FXDD not market maker? Judge yourself the validity of this assertion...

The continuation came with the 07:00 UK Interest Rate announcement. The movements just before the release and during its first moments were amazing. I couldn't believe this was possible. I've checked with four MT4 brokers, all show the same quotes for GBPJPY for 06:00 hour bar (about 214.93 low to 215.46 high) and for the 07:00 bar (about 214.77-216.03). The quotes at Oanda are very similar to these. The quotes at FXDD for the same hours were 213.96-215.46 and 213.99-216.04! Almost 100 pips difference on the prices received "directly from the Interbank market"!

I wrote FXDD about this, but got no response. The response came in a different way. When I checked the platform several hours later, I saw that history was re-written: the 06:00 bar is now 215.09-215.46 and the 07:00 bar is 215.20-216.02... George Orwell sends his best regards...

I'm done with FXDD...

Find your self a broker with fixed spreads, Why are you dealing with the low but non-fixed spreads?
  • #35
  • Jan 14, 2008 7:50am Jan 14, 2008 7:50am
one word bra.......oanda
  • #36
  • Jan 14, 2008 8:13am Jan 14, 2008 8:13am
Quoting mike999
Find your self a broker with fixed spreads, Why are you dealing with the low but non-fixed spreads?
Can you show me one broker that doesn't change spreads?
sans peur et sans reproche
  • #37
  • Jan 14, 2008 8:44am Jan 14, 2008 8:44am
It is unfortunate that you are locking yourself into using an MT4 broker.
I use MT4 strictly for charting - but I would never trade with an MT4 broker. Every one is a low end bucket shop.

If you are not going to move to an ECN, then for goodness sakes look into a better class of bucket shop.

Use MT4 for charts and place your trades w/ Oanda.
In trading, there is no bullshit. You either make money or you don't.
  • #38
  • Jan 14, 2008 9:28am Jan 14, 2008 9:28am
Quoting mrgreen
It is unfortunate that you are locking yourself into using an MT4 broker.
I use MT4 strictly for charting - but I would never trade with an MT4 broker. Every one is a low end bucket shop.

If you are not going to move to an ECN, then for goodness sakes look into a better class of bucket shop.

Use MT4 for charts and place your trades w/ Oanda.
Thanks for the input. To tell you the truth, I'm in a real dilemma now. I'm trying now to follow my MT4 charts and to demo-trade Oanda (as suggested to me earlier in this thread). For some reason, it's a real strain for me. Maybe it's a matter of experience.

In addition, all this broker-switching thing made me realize that my trading is very primitive and can be relatively easily programmed into a couple of EAs. This seems to me much easier to accomplish with MT4.

Finally, I don't trade news, I use mostly stop/limit orders, so execution speed doesn't bother me. The few pairs I trade are the cheaper ones (gbpusd, eurjpy, eurchf, and usdcad), and I don't have more than one trade per day with each, so the spread differences between an ECN and a decent MT4 broker aren't a big issue either. As far as the spread won't widen to 90 pips during announcements and the price won't spike for no reason, I'll be content with a broker.

Please advise me, where am I wrong?
sans peur et sans reproche
  • #39
  • Jan 14, 2008 10:00am Jan 14, 2008 10:00am
[quote=Trader KGB;1798571]Scott,

Your credibility in this matter is further brought into question by your previous post, where you mention traders you introduced using "500:1 margin to achieve 1000% weekly returns". Tales of vastly over-leveraged gamblers with pie in the sky returns aren't exactly a selling a point, unless you're referring to the only feasible revenue stream of this broker: account blowups.

quote]

I tried to offer a good solution to ilanr's problem and troll's jump out of the woodwork , make false accusations and get me banned. Maybe you think Golden Contract is too good to be true and your scared to test them out with a $10 account. Maybe that is why you end up with inferior firms and whine about them. That's fine, but that doesn't give you the right to bash them or me, neither of which you know anything about. In response to how you think that making these returns are pie in the sky please take a look at the attachment. This is from a news trading client who opened an account because he wasn't a pretentious troll and had the courage to try something new. If this doesn't validate Golden Contract nothing will.
Attached Image (click to enlarge)
Click to Enlarge Name: DetailedStatement.gif Size: 5 KB
Attached File(s)
File Type: doc statement.doc   111 KB | 291 downloads
  • #40
  • Jan 14, 2008 10:10am Jan 14, 2008 10:10am
It does appear that you are at a crossroad. I guess the answer to your questions can only be found within yourself and how far you wish to take your trading. It may be that using an EA is the most important part of the plan to free up your time - so that is influential. Safety of funds is another issue, perhaps the acct is not so large where this is an issue.
Good trading to you Ilanr, I have been where you are now and only through analysis of what I was attempting to accomplish could I make the decision.

Quoting ilanr
Thanks for the input. To tell you the truth, I'm in a real dilemma now. I'm trying now to follow my MT4 charts and to demo-trade Oanda (as suggested to me earlier in this thread). For some reason, it's a real strain for me. Maybe it's a matter of experience.

In addition, all this broker-switching thing made me realize that my trading is very primitive and can be relatively easily programmed into a couple of EAs. This seems to me much easier to accomplish with MT4.

Finally, I don't trade news, I use mostly stop/limit orders, so execution speed doesn't bother me. The few pairs I trade are the cheaper ones (gbpusd, eurjpy, eurchf, and usdcad), and I don't have more than one trade per day with each, so the spread differences between an ECN and a decent MT4 broker aren't a big issue either. As far as the spread won't widen to 90 pips during announcements and the price won't spike for no reason, I'll be content with a broker.

Please advise me, where am I wrong?
In trading, there is no bullshit. You either make money or you don't.
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