Best broker for United States residents

I am going to open an account with assetsfx and a small deposit to see how they operate their live accounts. They seem legitimate.

Usually its the scammer that is quick to call everyone else a scammer. As for Assetfx they claim to be regulated but do not say who they are regulated by, could be themselves. Forex is not considered an investment in Finland thus not requiring regulation.

Hy.i spoke with custumer service from assets and they said that the law in FINLAND doesnțt allow them to get regulation from other country.

I don t know if it s true. Check it out.

Hi ----,

1- Yes
2- We are regulated under normal Finnish corporate laws. Forex brokering
is not a separately licensed business in Finland.
3- Yes, in Bank of America, UK.

"What is the identification document number that I need to provide in
the live account opening application"

This would be either your driving license or passport number.

Thank you,

Tero Sahrakorpi
AssetsFx Trading


On 6/13/2013 5:42 PM, -----wrote:
> Sender's name: --------
> E-mail: -----------
>
> Message: Hello,
>
> I have a couple questions.
>
> 1-Do you accept USA residents?
> 2-Are you regulated?
> 3-Are client funds kept in segregated accounts?
>
> VR,
> -----

I don't really see much difference between them and forexoma, except that forexoma will not tell me where (which bank) they segregated my funds...

It appears that assetsfx is simply regulated by normal corporate law in Finland (no separate fx laws there). So accounts with international clients would most likely be unregulated. However, they do appear to be a little more honest in my eyes. They have lower commissions than forexoma also... I will see how real time trading with a live account goes with them before I make any decisions.

So basically between these two it's unregulated fx out of Hong Kong or out of Finland... whom does one choose? ... Forexoma also has an office in Finland... but forexoma has many many positive reviews...

Meh, maybe better to go with fxcm or mbtrading...

Man, common it's already getting to be funny)

Regulation is not a garantee. Do you remember FX First? It was regulated. And what was result? Company closed and clients did not recieve they money back...

I wouldn't open an account with a broker that advertises that they have ea's that have returned over $1.5 million in 2 years and you can use them if you only open an account for $200. Not exactly a professional marketing stragety to encourage professional traders to open an account with you!

Yeah, I checked out those EA's and I noticed the majority of that 1.5 million came from one using what seemed like quite a bit of leverage to me...

EDIT: Opening the account was relatively hassle free, taking only a few hours. Deposit by paypal and they absorbed paypal's transaction fee. I will report back after trading the news sometime next week. Probably tuesday, wednesday or thursday. I feel that trades during news time show the true quality of a broker.

http://pellucidfx.com/content/account-types

Hmmm, this one is interesting in that they offer 1:400 leverage and have lawyers to "verify" segregation of funds. Other than that, still an island broker unregulated.

This will probably take a few months, but I suppose whoever I can make decent gains with and does not give me trouble withdrawing said gains is the company that I will go with.
I will keep this thread up todate. Right now I do not want to open a live account with pellucidfx

ok dafox1...but please in future tell us your experience with assets because ițm interested too about them.thk you in advance.

SHDD...

Pellucid FX was founded in 2012 by veteran forex trader and account manager, Damon Hunt. It was opened after sensing an overwhelming need in the forex community for a brokerage that is built by a trader FOR traders.

I heard it so many times)

It's almost not possible to STP fixed spread accounts especially with zero slippage and tgan market is not liquid. And now about leverage. If you are real STP broker and you want to offer big leverage (1:400 is a big leverage) and you will get 1:100 for you as a broker than you need to have a lot of own funds if you want to STP all clients.

Yeah, needless to say I felt a little more cautious with this one...

check out this difference in data feeds between forexoma and assetsfx. Assetsfx is the one with the big gap in data.

http://www.forexfactory.com/showthread.php?t=432892

Sooo.....what you are trying to say is that this kind of brokers that advertise they are stp brokers and have such a huge leverage are feeding us with lies?

Mainly...yes. It's not only about leverage.

Max please do tell us how to identify cheaters and scamers only from the information we read from their sites.If you can ofcourse.

Yes, I will keep you updated. Hoping to have made some good money trading the news with both brokers by the end of the week. We will see which fills better at news time using the same straddle ea on each broker... because I really am just interested to see what the brokers do at news time and at the time when I request to withdraw profits.

It's not easy and for traders not important in reality is broker real STP or keep everything in house. In house doesn't mean scammer and STP doesn't mean that everything will be perfect. There are a lot of cons and pros of each model.

To answer on your question. You never will be able to identify is it real STP or not but some information even on the website and demo can say something. Than you will need to check live anyway because demo is absolutely different world)

FIXED spread

Most of bridges can't work properly with fixed spread. ALL LP is streaming with variable spread. If you spread is very wide like 3 pips in EUR than it's ok. But if spred is tight than it should be widen in Asia when liquidity is poor. So here you can see that spreads is not fixed in reality or got a nice slippage .... because bridge don't care about MT price at all. All calculations will be based on price of LP.

Tight spread.
A lot of people thinking that STP brokers should have tight spreads but it's not true. They have a costs which they have to cover: LP comissions, technology provider comission, affiliates and etc. So for example if you offer spread around 0.5- 0.8 including comission ( appr 0.2+ $7 commission) than you will only cover cost mentioned above. If you will add here rebates and affilates comissition tan you already in loss. So to be in profit STP broker should have bigger spread than in house broker because they don't have such costs. Because of aggregation broker can get price improvements and have a negative spread but anyway STP broker need a bigger spread to make a profit.

Leverage
If company is real STP broker and offset all clients than it's necessary to cover difference in leverage by own funds. If you offer 1:400 to clients and have 1:33 - 1:100 for yourself than you need a lot of own money if you have a lot of clients.

Margin call/stop out

Client can't loose more than was deposited but broker can. Because if client account in minus than broker will pay. So they have to keep margin call and stop put levels higher and decreasing leverage over the weekend. Just exaple: you have $10K on account and with 1:400 you can open almost 3 mio EURUSD) in case of gap your account will stoped out and you will have negative balance and broker will have to cover it.

Execution
Execution is very different for STP and in house broker. Of course also question in liquidity. But STP broker im most of cases will execute your orders with slippage positive or negative. In house brokers generally execute at the same price or worse. But everything can be simulated.

For example no requtes with market execution means slippage. But check how is it going with pending orders) if it executed in same price all the time than you can be sure that this is in house broker)

Bonuses
Bonuses is potential risk for STP broker. Because if something will go wrong and bonus won't be removed in time than broker will loose own money. This problem doesn't exist for inhouse broker.


It's how I can identify is it STP or not. But it's not a garantee... If it is not enough I can give your more tools)

This might be a relevant read at this point of the discussion,
The Structure of Forex Brokers