The bad side from Fxsol(suspicious activity) | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Regulation question about suspicious broker activity 6 replies

Anyone using FXSOL? 4 replies

FXSol Holiday Trading Hours 7 replies

Multiple Accounts on FXSol 3 replies

FXsol transfer via Paypal 10 replies

The bad side from Fxsol(suspicious activity)

  • #1
  • First Post: Jul 17, 2008 8:05am Jul 17, 2008 8:05am
Hello, Im a active trade i mean that i open and close positions within a miuntes,and that's work with Fxsol, But the big problem was that they said (We are advising you that we have determined that there is suspicious trading activity occurring in your account ,We will deactivate your account pending further investigations) that's since 12 days ago,
  • #2
  • Jul 17, 2008 9:07am Jul 17, 2008 9:07am
Quoting mohammadh
Hello, Im a active trade i mean that i open and close positions within a miuntes,and that's work with Fxsol, But the big problem was that they said (We are advising you that we have determined that there is suspicious trading activity occurring in your account ,We will deactivate your account pending further investigations) that's since 12 days ago,
I am assuming that they might have suspected you of scalping. Not all brokers allow it. I know MGforex will let you do that and maybe OandA.

Good luck
  • #3
  • Jul 17, 2008 1:41pm Jul 17, 2008 1:41pm
Fxsol allwo scapling ... But i don't know what happen for them
  • #4
  • Jul 17, 2008 10:48pm Jul 17, 2008 10:48pm
fxsol has currently problems in general.

they also closed accounts from several other traders for unclear reasons
Forex is a losers game.
  • #5
  • Jul 18, 2008 2:22am Jul 18, 2008 2:22am
Quoting mohammadh
Hello, Im a active trade i mean that i open and close positions within a miuntes,and that's work with Fxsol, But the big problem was that they said (We are advising you that we have determined that there is suspicious trading activity occurring in your account ,We will deactivate your account pending further investigations) that's since 12 days ago,
Have you contacted FXsol about this?

If you have contacted them about this, what was there reason?

If you have not contacted them first, then maybe you should do that before you post the problem.
  • #6
  • Jul 18, 2008 2:25am Jul 18, 2008 2:25am
Quoting trader121
fxsol has currently problems in general.

they also closed accounts from several other traders for unclear reasons
Where did you hear this from?
  • #7
  • Jul 18, 2008 6:00am Jul 18, 2008 6:00am
I contact them but they just say you can withdrawal your funds,they don't need client's now, i think that they have a general problem in the managment
  • #8
  • Jul 18, 2008 6:19am Jul 18, 2008 6:19am
Simple. Brokers dont want to keep winners on their books for too long.
Broker's definition of suspicious activity = winning trades
So they weed out the winners and they can give great customer service to the losers.

P.S: You should just withdraw your money and move to another broker.
  • #9
  • Jul 18, 2008 6:30am Jul 18, 2008 6:30am
Quoting PipStar
Simple. Brokers dont want to keep winners on their books for too long.
Broker's definition of suspicious activity = winning trades
Hello PipStar. Are you being sarcastic? My question is a serious one. I'm still learning but not losing. I'm on a pretty good run here. So there is a chance that my broker does not want my business?

KISSFan
  • #10
  • Jul 18, 2008 6:38am Jul 18, 2008 6:38am
Quoting KissFan
Hello PipStar. Are you being sarcastic? My question is a serious one. I'm still learning but not losing. I'm on a pretty good run here. So there is a chance that my broker does not want my business?
KISSFan
You should rest easy, I was refering to traders that trade big lots and consistently make lots of money.
  • #11
  • Jul 18, 2008 6:43am Jul 18, 2008 6:43am
That seems a bit odd. Why wouldn't brokers like FXsol and FXCM want you to make money. They get paid a commision if you win or lose right?
  • #12
  • Jul 18, 2008 7:13am Jul 18, 2008 7:13am
Brokers take the opposite side of your trade so when you win, they lose.
Unless they are hedging with a counterparty but most of the time they dont hedge because they know that most traders lose money so they keep the trade in house. Your loss becomes their profit.
  • #13
  • Edited 7:59am Jul 18, 2008 7:38am | Edited 7:59am
http://www.fxsolutions.com/trading/a...-execution.asp

This means 99% of the time they take the opposite side of your trade and if you lose they win. Notice how they dont say 99% of trades go right to the banks. If customers make a trade that FXSol doesn't want to keep the other side of they have the ability to offset with their LP's for a much better price then they offered the client. However, they seem to have clients that like trading with them and if you are one then stick with what you like. I dont blame FXSol for doing this if traders still want to trade with them. There's enough on FXCM on FF where I dont have to say anything here but I dont think their practices are much different but they do have better spreads but I doubt FXCM has better execution.
  • #14
  • Jul 18, 2008 7:56am Jul 18, 2008 7:56am
Quoting PipStar
Brokers take the opposite side of your trade so when you win, they lose.
Unless they are hedging with a counterparty but most of the time they dont hedge because they know that most traders lose money so they keep the trade in house. Your loss becomes their profit.
OK. Let's say I'm a broker with 10,000 clients. 500 are trading profitable. I leave them alone to trade and just make the spread/commission and take the opposite side of the trade on the other 9500. I can see who knows what they are doing and those who do not. Is this a realistic scenario?
  • #15
  • Jul 18, 2008 8:02am Jul 18, 2008 8:02am
Quoting KissFan
OK. Let's say I'm a broker with 10,000 clients. 500 are trading profitable. I leave them alone to trade and just make the spread/commission and take the opposite side of the trade on the other 9500. I can see who knows what they are doing and those who do not. Is this a realistic scenario?
Yes and most brokers run two books; A Book (profitable traders) and B Book (non-profitable traders). If their technology allows it they can put those traders straight through to the banks or they have to offset their postions with the banks.
  • #16
  • Jul 18, 2008 8:14am Jul 18, 2008 8:14am
Quoting fxtrader42
Yes and most brokers run two books; A Book (profitable traders) and B Book (non-profitable traders). If their technology allows it they can put those traders straight through to the banks or they have to offset their postions with the banks.
Interesting stuff. Thanks for the info!
  • #17
  • Jul 19, 2008 1:21am Jul 19, 2008 1:21am
I understand that some brokers do bank off of losing traders but wouldn't this hurt their business?

If their clients are leaving then they can't make money from spreads because no one is trading with them. If this is the case then we will start to witness more retail forex brokers running out of business in the near future.

These retail brokers need to understand that they are not the only way to trade currency. The CME Futures currencies is always a mouse click away.
  • #18
  • Jul 19, 2008 1:41am Jul 19, 2008 1:41am
If your trading style has flagged your account as possibly taking advantage of any latency that exists then they'll either boot you out, suspend your account, or put you on manual execution.

Not saying that's the reason but it could be.

If I were you I'd simply ask them what the problem is. If they can't (or won't) tell you then walk, there are plenty of choices out there.
  • #19
  • Jul 19, 2008 2:51am Jul 19, 2008 2:51am
Quoting moben
I understand that some brokers do bank off of losing traders but wouldn't this hurt their business?
No. They feed off newbies and there are plenty of them around. Those who blow their accounts are easily replaced by plenty of new eager forex traders on their way to blow their new account.
Just think. How does a casino make money? Same for your forex retail broker.
  • #20
  • Last Post: Jul 19, 2008 3:30am Jul 19, 2008 3:30am
Quoting PipStar
No. They feed off newbies and there are plenty of them around. Those who blow their accounts are easily replaced by plenty of new eager forex traders on their way to blow their new account.
Just think. How does a casino make money? Same for your forex retail broker.
valid point...
I believe . . .
0 traders viewing now