what will happen if my account has $1M? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mini Account vs Micro Account 7 replies

3 week demo account leading up to live account. 20 replies

Demo account versus live account. 19 replies

Comparison between Managed account and Self trade account 3 replies

Who has the largest account / has made the most money trading? 10 replies

what will happen if my account has $1M?

  • #1
  • First Post: Jan 11, 2010 2:30am Jan 11, 2010 2:30am
Hello ,

I am using 2 brokers, FXCM and Alpari UK.

lets say, my account started from $10k and it grows at a rate of 30% per month, which means in th 19th month, my account will have $1,124,554

logically, if i am a very good trader, this is possible, however, will even reputable brokers such as FXCM and Alpari UK use dirty tricks such as

 

  1. stop hunting
  2. requoting
  3. widening the spread to some ridiculous number
  4. software disconnects
  5. lagging/fraudulent price quotes
  6. unfilled orders
  7. account banning

to make sure i can never grow my $10k into such a big amount?

I heard my friend say once the accoun reaches about $25000, they will start to use all these tricks, so the best way is to keep the account under $25k and open more accounts?

please share with my any ideas or comments that you might have.. many thanks !!!

  • #2
  • Jan 11, 2010 2:57am Jan 11, 2010 2:57am
Trade with a ECN broker and you'll be fine. - ATC Brokers, MB Trading, Dukascopy, Oanda (VG Market Maker), Interactive Brokers - there are others but it'll be a while before you need them. (If you can make 30% per month that would make you one of the best traders in the world!!)
  • #3
  • Jan 11, 2010 4:14am Jan 11, 2010 4:14am
ok thanks.... not sure about 30%, but 10% im pretty confident. infact, in forex, for returns, the sky is the limit !

i will stick with those 2 for now first..
  • #4
  • Jan 11, 2010 10:36am Jan 11, 2010 10:36am
Quoting hareanone
Hello ,

I am using 2 brokers, FXCM and Alpari UK.

lets say, my account started from $10k and it grows at a rate of 30% per month, which means in th 19th month, my account will have $1,124,554

logically, if i am a very good trader, this is possible, however, will even reputable brokers such as FXCM and Alpari UK use dirty tricks such as

 

  1. stop hunting
  2. requoting
  3. widening the spread to some ridiculous number
  4. software disconnects
  5. lagging/fraudulent price quotes
  6. unfilled orders
  7. account banning

to...

Hi hareanone,

Standard and active trader account with FXCM use no dealing desk execution which means your profit on a trade is not FXCM's loss. Every trade is executed back to back with one of the world's premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. Stop hunting, re-quotes and account banning are things which typically occur when you trade against a dealing desk. Spreads can widen on FXCM accounts since the spread is based on the best bid/ask price being offered from multiple banks.

FXCM is making money through a fixed pip-mark up on the bid/ask spread which you pay every time you place a trade. So the more volume you transact the more revenue FXCM is generating in return. If you trade over 10 million in notional volume per month or your balance exceeds $25,000 then we can discuss reduced spreads with a commission to lower your overall trading cost.

All the best with your trading,

Jason
  • #5
  • Jan 11, 2010 11:07am Jan 11, 2010 11:07am
Quoting Jason Rogers
Hi hareanone,

Standard and active trader account with FXCM use no dealing desk execution which means your profit on a trade is not FXCM's loss....
ok got it thanks... at this rate, i would need about at least 5-6 more months before i hit $25k.....
  • #6
  • Jan 14, 2010 10:44am Jan 14, 2010 10:44am
Quoting Jason Rogers
Hi hareanone,

Standard and active trader account with FXCM use no dealing desk execution which means your profit on a trade is not FXCM's loss. Every trade is executed back to back with one of the world's premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. Stop hunting, re-quotes and account banning are things which typically occur when you trade against a dealing desk. Spreads can widen on FXCM accounts since the spread is based on the best bid/ask price being offered from multiple banks.

FXCM is...
Read FXCM's risk disclosure, they have no dealing desk on micro accounts it says they may offset others!!
  • #7
  • Jan 14, 2010 10:55am Jan 14, 2010 10:55am
"Please note FXCM Micro in its discretion may or may not offset individual transactions unlike transactions in MOST FXCM standard accounts."

from the bottom of the page
http://www.fxcm.co.uk/execution-advantage.jsp

The key word here being MOST. It doesn't say they do not offset all positions but just most.
  • #8
  • Jan 14, 2010 11:13am Jan 14, 2010 11:13am
What will happen? Pigs learn to fly. Just kidding of course...
  • #9
  • Jan 14, 2010 4:44pm Jan 14, 2010 4:44pm
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting hareanone
Hello ,

I am using 2 brokers, FXCM and Alpari UK.

lets say, my account started from $10k and it grows at a rate of 30% per month, which means in th 19th month, my account will have $1,124,554

logically, if i am a very good trader, this is possible, however, will even reputable brokers such as FXCM and Alpari UK use dirty tricks such as


Since the above mentioned brokers don't offer real segregated account under your name , as 99% of all FX brokers don't do, it would not be smart to hold such an amount of money with them in the case of broker bankruptcy

---------------------------------------------
http://www.myfxbook.com/members/pc8multifx
  • #10
  • Jan 14, 2010 5:07pm Jan 14, 2010 5:07pm
hareanone, when your acct reaches $1m, send me a PM and you can wire it to me.
  • #11
  • Jan 14, 2010 9:07pm Jan 14, 2010 9:07pm
Quoting onu
Since the above mentioned brokers don't offer real segregated account under your name , as 99% of all FX brokers don't do, it would not be smart to hold such an amount of money with them in the case of broker bankruptcy

---------------------------------------------
http://www.myfxbook.com/members/pc8multifx
Can you please mention those who offer segregated accounts? Thanks.
  • #12
  • Jan 15, 2010 6:00am Jan 15, 2010 6:00am
Quoting Miami_Trader
"Please note FXCM Micro in its discretion may or may not offset individual transactions unlike transactions in MOST FXCM standard accounts."

from the bottom of the page
http://www.fxcm.co.uk/execution-advantage.jsp

The key word here being MOST. It doesn't say they do not offset all positions but just most.

whoa this is just pure word play..... isnt it?
  • #13
  • Jan 15, 2010 6:38am Jan 15, 2010 6:38am
Has anyone here, or anybody you know actually been so good that they've been banned by some brokerage house?

I read a post here a long time ago and have not been able to find it since where some older gentleman was raking Oanda over the coals and grew his account to only 65K and they "put him on manual trading." Thats the only personal account I've heard though.

I am personally making the shift into trading futures. CME takes care of business!
  • #14
  • Jan 15, 2010 8:41am Jan 15, 2010 8:41am
A couple of points.

1. You would never leave 100% of your money in a brokerage account. If you had a million then leaving a maximum of 10% in the account should suffice. At that amount you are most probably only trading 1% to 2% risk of the million. The beauty of larger accounts is that you can trade a smaller % and still do great from a pure money point of view.

2. You would have a segregated account or trade through a letter of credit and leave your money on deposit at a bank.

3. You would only be trading with an ECN or other non dealing desk broker.


The primary thing to remember is that your trading would change significantly both from an MM and a psychological point of view. It is tough for people to see how they have to change and some don't. Right now you are talking about 30% monthly returns. With a million dollars I assume that you would be satisfied with 5% to 10% max and enjoy your life. Remember that is $50,000 to $100,000 a month.


This inverse relationship to risk profile and deposit amount probably accounts for why the majority of small traders die. They believe that they need to take large risks (10% per trade etc) to achieve their goals while the trader with the large deposit risks a max of 1% or so knowing that he will live to trade another day.
  • #15
  • Jan 15, 2010 9:13am Jan 15, 2010 9:13am
Quoting hareanone
whoa this is just pure word play..... isnt it?
Due to regulations and legal issues they choose their words very carefully. I just took my series 3 and learned that offsetting clients positions is illegal in the commodities and futures market but acceptable in the Forex market. If they didn't do it they would say they don't, but how that is worded leads me to believe that they do. I have also read in many places that they do. With 90-95% of traders losing all their money the first year it sounds like the safest bet in Forex. If you are good at trading than it shouldn't affect you.
  • #16
  • Jan 15, 2010 3:55pm Jan 15, 2010 3:55pm
Quoting hareanone
whoa this is just pure word play..... isnt it?
I will check on it for you.

-Jason
  • #17
  • Jan 15, 2010 3:56pm Jan 15, 2010 3:56pm
Quoting Qwert
Can you please mention those who offer segregated accounts? Thanks.
Accounts through FXCM UK are segregated in accordance with FSA client money rules.
  • #18
  • Jan 16, 2010 9:58am Jan 16, 2010 9:58am
Quoting Jason Rogers
I will check on it for you.

-Jason

thanks alot.
  • #19
  • Jan 16, 2010 9:59am Jan 16, 2010 9:59am
Quoting flyer415
With a million dollars I assume that you would be satisfied with 5% to 10% max and enjoy your life. Remember that is $50,000 to $100,000 a month.


This message of yours really reminds me why i wanted to learn forex in the first place.

just a 5 % returns of 1 million dollars per month is $50000 per month. and i can really lead a damm good life with that.

thanks
  • #20
  • Jan 16, 2010 12:03pm Jan 16, 2010 12:03pm
Even if before you reach $1M, you should open an account with ECN Broker.

Just want to ask any of our friends here about the list of bonafide ECN Broker, according to their real experiences with that broker.
Could any of us could provide the list?
0 traders viewing now