DislikedWhat I meant was the holding periods before the cash can be reinvested. For instance, you sell abc stock, you have to wait 3 days before the funds are available for use again. Lets say you have a smallish account (me!), and want to play a fade trade with a tight stop, not only may you not have proper funds to leverage yourself properly at 1 percent, but lets say you do and use up all of your funds, your next trade must be 3 days away! I just hate the restrictions like that .Ignored
Dislikedmostly scares me though are price discrepancy's between feed and reality. If thats the case, then I definiately will not bother. What I wonder though, aren't most currency brokers bucketshops though anyway? Don't they have similar discrepancy's? I don't see what the major difference is besides the interest.Ignored
(when you really get down to the microstructure, they arent that different though, especially with the newer exchanges like nasdaq. but that's beside the point)
Anyways, yeah - some forex brokers are bucketshops. Alot of them, in fact. They take the other side of your trade. What you lose, they gain, and vice versa. Whether this matters or not is something else entirely. Read DarkStar's post 'the structure of forex brokers' or similar, he explains it much more eloquently than I can. If you cant find it, im sure someone here (ie, mike) can point you to it
Aside from the usurious interest and the bipolar spreads, there probably isnt much difference in practical terms. The main difference is that with a forex broker you are (often?) trading the underlying, whereas with a CFD contract you never are*.
Like anything though, there are honest and not so honest players. I'd be hard pressed to decide who was scammier between CFDs and forex, as an industry though. Ugh.
When you have to shoot, shoot. Dont talk.
I still gotta figure that one out!
