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Joined Oct 2008
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Status: I can has cheeseburger?
|165 Posts
They're all bucket shops, accept it. Yours is just to choose a good one. I have an account at Oanda and IBFX. I like the way Oanda handles lots and five number prices and their execution is really really fast, instantaneous but I didn't like the 50:1 maximum leverage, no hedge trading and their charts suck so after some time researching on the internet I chose IBFX. Their support is fantastic, hedging is allowed and MT4 is good but what I don't like is the re-quotes. I don't scalp but sometimes a pip or two can mean a difference and re-quotes really pi** me off. In the last week I've experienced some connection troubles but I think that's only temporary. Apart from that, they won some awards for the best broker in London, or something.
I can't recommend anything to anyone because I'm trading for two months so I think I'm not competent to give out advice but I'm satisfied with them so far.
Joined Jan 2008
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Status: Lunatic Supreme
|1,840 Posts
Unless you're trading w/ an ECN, you're w/ a bucket shop. This isn't inherently bad since it means you can take smaller than standard lots, just make sure they don't trade against you too badly.
IBFX is ok, if you have trade problems don't hesitate to call them.
If they are trading against you, then why does the guy in the video say they are different because they don't trade against you? He is saying they are like ECN brokers.
Joined Jan 2008
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Status: Lunatic Supreme
|1,840 Posts
Think thru it. You can't pass $1000 lots to an ECN, wtf are they going to do with it? So what do they do? They aggregate trades. They have to. They take some of your trades, some other people's trades, and they mix em together to get a net position for each pair at each time.
That gives them an overall losing position on practically every trade. They could just bucket the net trade and not put it to the market, but there are times when that exposure gets too big... like during a major trend or whatever. So what happens? They eventually have to offset that risk, which means putting another trade to the market.
Still, make no doubt, they're the broker of first resort for most trades. They may not resort to hinky tactics to nickle&dime ya (altho some do), but their interests are never going to be perfectly lined up with yours.
If they are trading against you, then why does the guy in the video say they are different because they don't trade against you? He is saying they are like ECN brokers.
Ignored
Maybe because is sounds good to the costumers?
Ever thought about that?
