- #2,722
- Aug 27, 2011 8:02am Aug 27, 2011 8:02am
- Joined Oct 2009 | Status: . | 4,038 Posts
Congratulations ScalaFX for coming out of the closet!
- #2,724
- Aug 27, 2011 9:54am Aug 27, 2011 9:54am
- Joined Jan 2011 | Status: Ordinary Members | 10,684 Posts
Mohan 
- #2,726
- Aug 27, 2011 10:55am Aug 27, 2011 10:55am
- Joined Oct 2007 | Status: follow momentum. | 1,202 Posts
- #2,730
- Edited 7:28am Aug 28, 2011 6:48am | Edited 7:28am
I'd like to break this whole thing down to the very basics. The following are all stickily my personal (mostly unbiased) opinions and may be far from fact. I'm a double business major with a minor in marketing so hopefully some of what I haven't yet forgotten can help shed a little light on things
I'm sure it wasn't an easy decision for Go to make...
On the one hand GO is gaining clients by using cb IBs that they would not have otherwise, they are also making more $ because the majority of us using a rebate program trade more often because we take into consideration that even if our trade winds up being break even we still get our cashback and since go makes $ off every trade its better for them for clients to trade more often, than most clients (like me) are also referring more people to Go since clients make an extra 10% off everyone they refer through cashback, so instead of cashback giving GO just one client I think the majority of cash back people are also sending 1-3 other clients to Go through cashback. I myself have 5 people referred through them and had more on the way. And lastly they were gaining clients who were comparing similar tiered brokers and than finalizing their decision based on who had the lower spread and cashback helped lower that spread and make GO the one to choose. So yes they are going to possibly loose many of those people, slow down the influx of new clients, and lose many existing clients to other same tier but now lower spread brokers, this could even have the unfortunate side affect of opening the window juuuust enough for a neighboring "newbie" brokerage firm to collect all these moving clients and become the new Aussie powerhouse brokerage.
On the other hand GO probably hands over something like 100k+ every month to a company who's basically doing next to nothing and getting paid an absolute boatload of money for it. GO does all the work for their clients and yet cashback reaps all the benefits. Not exactly all that fair if you ask me
By eliminating this middle man they are giving themselves a HUGE pay raise. Now able to get that shiny new car or boat they want, and invest more money back into the infrastructure of their company like new technology, new offices, more advertising, pay raises for hard working employees, maybe a new server hub somewhere not in Australia or maybe just some nice new servers with decent execution time etc.
I'm sure GO has thought long and hard about this decision and weighed all these pros and cons and decided on what they thought was the best decision for the longterm benefit of their company. At least I hope they did. I for one do think that the whole cashback rebate idea is an odd one and kind of just plain stupid. I'd rather just have all brokers have their spreads right out there in the light for all to view and compare and then the client is responsible to make his or her own educated decision. But unfortunately this is not how things are. In my perfect world there would be no rebate IBs and spreads just are what they are. I know I would HATE forking over all that hard earned cash to middlemen instead of keeping more of what I earned by doing all the work.
Whether or not this decision will turn out to be the best one or not im sure wont be visible till a ways down the road. 99% or so of Gos cbf clients are not going to be reading this thread so they are not even aware that they are no longer going to get that rebate check for another 2 months yet But i think this whole issue is something big enough to make a big dent one way or the other. It may just boil down to raw human nature. How much do new clients research brokers before deciding on one and what are these deciding factors. Are most new clients simply uniformed people who typically blow their account within 5-6 months and are done or is that not what makes up their major client base.
Regardless of this whole mess GOMarkets remains a solid and TRUSTWORTHY firm with probably THE BEST customer service in the entire industry, they are without a doubt SAFE, extremely reputable, and still have competitive pricing. will 0.35 higher spread for the reportidly 5% of their clients have an affect or not, who will know except Go themselves in a few months or a years time. I have much loyalty to GO because I KNOW that good brokers are very few and far between. We all know theres sooooo many dirty tactics utilized by so many brokers and GO has already PROVEN that they use none of these tactics. I find it scarey now to venture out trying to shop around once again for a broker and am extremely disappointed that I now even find myself in this position. I've already opened a new account at a same tier but now lower spread brokerage to "test the waters" I definitely do NOT want to change brokers but being one of the educated type clients I find it necessary for me to know all viable options. I know that some months it has come down to that 0.35 which decided if I was in profit or loss for that month. So while testing the waters is where I'm at I will not finalize my decision till mid Sept, I know I'm not the only one in the boat on this either. The best us 5%ers can do is keep our fingers crossed that Go comes up with a solution for us in the meantime before we are very very unfortunately forced to make that end decision on what or whatnot to do. I wish each person in our shoes the best of luck, it's not an easy decision to have to make and I also wish GO the very best of luck and hope they come out of this right back on top, exactly where they belong
I'm sure it wasn't an easy decision for Go to make...
On the one hand GO is gaining clients by using cb IBs that they would not have otherwise, they are also making more $ because the majority of us using a rebate program trade more often because we take into consideration that even if our trade winds up being break even we still get our cashback and since go makes $ off every trade its better for them for clients to trade more often, than most clients (like me) are also referring more people to Go since clients make an extra 10% off everyone they refer through cashback, so instead of cashback giving GO just one client I think the majority of cash back people are also sending 1-3 other clients to Go through cashback. I myself have 5 people referred through them and had more on the way. And lastly they were gaining clients who were comparing similar tiered brokers and than finalizing their decision based on who had the lower spread and cashback helped lower that spread and make GO the one to choose. So yes they are going to possibly loose many of those people, slow down the influx of new clients, and lose many existing clients to other same tier but now lower spread brokers, this could even have the unfortunate side affect of opening the window juuuust enough for a neighboring "newbie" brokerage firm to collect all these moving clients and become the new Aussie powerhouse brokerage.
On the other hand GO probably hands over something like 100k+ every month to a company who's basically doing next to nothing and getting paid an absolute boatload of money for it. GO does all the work for their clients and yet cashback reaps all the benefits. Not exactly all that fair if you ask me
By eliminating this middle man they are giving themselves a HUGE pay raise. Now able to get that shiny new car or boat they want, and invest more money back into the infrastructure of their company like new technology, new offices, more advertising, pay raises for hard working employees, maybe a new server hub somewhere not in Australia or maybe just some nice new servers with decent execution time etc.
I'm sure GO has thought long and hard about this decision and weighed all these pros and cons and decided on what they thought was the best decision for the longterm benefit of their company. At least I hope they did. I for one do think that the whole cashback rebate idea is an odd one and kind of just plain stupid. I'd rather just have all brokers have their spreads right out there in the light for all to view and compare and then the client is responsible to make his or her own educated decision. But unfortunately this is not how things are. In my perfect world there would be no rebate IBs and spreads just are what they are. I know I would HATE forking over all that hard earned cash to middlemen instead of keeping more of what I earned by doing all the work.
Whether or not this decision will turn out to be the best one or not im sure wont be visible till a ways down the road. 99% or so of Gos cbf clients are not going to be reading this thread so they are not even aware that they are no longer going to get that rebate check for another 2 months yet But i think this whole issue is something big enough to make a big dent one way or the other. It may just boil down to raw human nature. How much do new clients research brokers before deciding on one and what are these deciding factors. Are most new clients simply uniformed people who typically blow their account within 5-6 months and are done or is that not what makes up their major client base.
Regardless of this whole mess GOMarkets remains a solid and TRUSTWORTHY firm with probably THE BEST customer service in the entire industry, they are without a doubt SAFE, extremely reputable, and still have competitive pricing. will 0.35 higher spread for the reportidly 5% of their clients have an affect or not, who will know except Go themselves in a few months or a years time. I have much loyalty to GO because I KNOW that good brokers are very few and far between. We all know theres sooooo many dirty tactics utilized by so many brokers and GO has already PROVEN that they use none of these tactics. I find it scarey now to venture out trying to shop around once again for a broker and am extremely disappointed that I now even find myself in this position. I've already opened a new account at a same tier but now lower spread brokerage to "test the waters" I definitely do NOT want to change brokers but being one of the educated type clients I find it necessary for me to know all viable options. I know that some months it has come down to that 0.35 which decided if I was in profit or loss for that month. So while testing the waters is where I'm at I will not finalize my decision till mid Sept, I know I'm not the only one in the boat on this either. The best us 5%ers can do is keep our fingers crossed that Go comes up with a solution for us in the meantime before we are very very unfortunately forced to make that end decision on what or whatnot to do. I wish each person in our shoes the best of luck, it's not an easy decision to have to make and I also wish GO the very best of luck and hope they come out of this right back on top, exactly where they belong
- #2,738
- Aug 30, 2011 6:04am Aug 30, 2011 6:04am
- Joined Jan 2011 | Status: Ordinary Members | 10,684 Posts
Mohan
