Why do so many people have accounts with just awful brokers? | Forex Factory

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Why do so many people have accounts with just awful brokers?

  • #1
  • First Post: Edited 9:37pm Jun 22, 2013 7:23pm | Edited 9:37pm
Just looked at Instaforex's website. Oh god... They have a contest and they're giving out a Lotus? And a 40% bonus that can't be withdrawn? Isn't that just the same as giving you more leverage? Why not just up the leverage instead of giving a "cash bonus"? Are retail traders that stupid that they can't tell the difference? Bucket shop all the way. Not trying to pick on just Instaforex. I've looked at tons of brokers that people are using in the Trade Explorer. These knucleheads don't care about their customers. They want you to lose, so they can make money. What else is the point of getting you to take on bigger and bigger risks?

Warning signs you should look for:

1. Anything that is too good to be true. Like 0 spreads, or stupid restrictions on trading, like no scalping etc.

2. Any broker that's running competitions to see who can make the most returns in a month.

3. Cash bonuses that can't be withdrawn. This is just like giving you more leverage.

Why aren't people keeping it simple and trading with an ECN? It's just so sad to see you all doling out money to these idiots.

Trade with reliable brokers and increase your chances of being successful. Is there something I'm not seeing here?
  • #2
  • Edited 9:38pm Jun 22, 2013 7:33pm | Edited 9:38pm
You do realize that at some point, they will bend the rules if you're making money, right? Like requotes or locking the platform for a little bit when it's volatile, accusing you of breaking their rules by scalping, or feed error excuses etc. I had to deal with this nonsense over at FXCM, back in the day. Not sure if their operation has improved lately and honestly don't care. There are tons of great brokers out there. And there is always CME futures or currenex. But i guess you won't get the outrageously large leverage that these bucket shops offer.

I guess it doesn't matter anyway. If people are attracted by 1:400 leverage there are doomed to fail anyway.
  • #3
  • Jun 22, 2013 8:52pm Jun 22, 2013 8:52pm
Quoting card
You do realize that at some point, they will bend the rules if you're making money, right? Like requotes or locking the platform for a little bit when it's volatile, accusing you of breaking their rules by scalping, or feed error excuses etc. I had to deal with this nonsense over at FXCM, back in the day. Not sure if their operation has improved lately and honestly don't care. There are tons of great brokers out there. And there is always CME futures or currenex. But i guess you won't get the outrageously large leverage that these boiler rooms offer....
i've experienced this first hand with instaforex. so i've been using the same passport and bank statement to verify my past accounts that i received from the trading contests. now, i've been very sly to make sure that it looked like i was just another gambler. i'd trade oversized lots and what not and basically do what i can do blow my account. however, this is only AFTER i withdrew a nice profit i made through proper trading. by doing so, it made it look like i got lucky. now, i also used their forum promo for a while and well, looks like they finally caught on. so now my same passport and bank statement are being rejected as verification because as they claim the documents were insufficient. now, considering that i've used these documents over and over again and contacted live support several times which they confirmed opening more than one account with them is allowed, i would consider this a sly maneuver to weed out the profitable traders and give all the fake money to the unprofitable traders where they don't have to payout.
  • #4
  • Jun 22, 2013 11:51pm Jun 22, 2013 11:51pm
Quoting card
Just looked at Instaforex's website. Oh god... They have a contest and they're giving out a Lotus? And a 40% bonus that can't be withdrawn? Isn't that just the same as giving you more leverage? Why not just up the leverage instead of giving a "cash bonus"? Are retail traders that stupid that they can't tell the difference? Bucket shop all the way. Not trying to pick on just Instaforex. I've looked at tons of brokers that people are using in the Trade Explorer. These knucleheads don't care about their customers. They want you to lose, so they can...
Hi, I currently use FXCM. But i want to move to ecn broker, and using ctrader platform whih cant be interverted by broker.
I think i will choose fxpro or icmarkets.
What do you think?

Thanks in advance
Forex is a - High Profit, Controllable Risk - Business
  • #5
  • Jun 23, 2013 12:08am Jun 23, 2013 12:08am
Quoting Family Man
{quote} Hi, I currently use FXCM. But i want to move to ecn broker, and using ctrader platform whih cant be interverted by broker. I think i will choose fxpro or icmarkets. What do you think? Thanks in advance
fxpro`s ctrader commission is too expensive than other ecn brokers.
fxpro`s ctrader,
tight spread ( below 1.0 pip) is only major symbols.
Only major symbols are 5 digits.
But minor symbols are 4 digits.
and minor symbols are not tight. over 1pip.
Check my posts.
  • #6
  • Jun 23, 2013 12:19am Jun 23, 2013 12:19am
Quoting entheos
{quote} fxpro`s ctrader commission is too expensive than other ecn brokers. fxpro`s ctrader, tight spread ( below 1.0 pip) is only major symbols. Only major symbols are 5 digits. But minor symbols are 4 digits. and minor symbols are not tight. over 1pip. Check my posts.
So, what your advice? Icmarkets?
Forex is a - High Profit, Controllable Risk - Business
  • #7
  • Jun 23, 2013 12:37am Jun 23, 2013 12:37am
Quoting Family Man
{quote} So, what your advice? Icmarkets?
I have not experienced icmarkets.
So Not recommend.
  • #8
  • Jun 23, 2013 1:18am Jun 23, 2013 1:18am
Quoting Family Man
{quote} Hi, I currently use FXCM. But i want to move to ecn broker, and using ctrader platform whih cant be interverted by broker. I think i will choose fxpro or icmarkets. What do you think? Thanks in advance
If your account is large enough, go with MB Trading or Interactive Brokers or some pure STP currenex broker. Stay away from foreign brokers unless there is virtually no one complaining about them on the internet. But you will probably need a large account for that. Unless FXCM is still pulling the delay BS when you're making money, no reason to leave them for now.
  • #9
  • Jun 23, 2013 1:22am Jun 23, 2013 1:22am
You only have to worry about transaction costs after you meet the following requirements:

1. You'e trading 10+ times a day.
2. You have been consistently making money for at least 6 months.

If you are doing both the above, time to think about cutting transaction costs, to boost profits.

BTW, MB pays you for limit orders! And their liquidity is great. Their server is down every now and then, but you can always call the desk and get out of your position. Unless you're highly leveraged and the position is moving against you super fast, the time it takes to call doesn't do any serious damage.
  • #10
  • Jun 23, 2013 5:32am Jun 23, 2013 5:32am
Quoting Family Man
{quote} So, what your advice? Icmarkets?
Icmarkets. You can check donnaforex..they have a lively discussion about icmarkets there.
  • #11
  • Jun 23, 2013 6:38am Jun 23, 2013 6:38am
This is very much true that when we see something too good to be true then probably it is. I really do not like the cash bonus which serves no good purpose while trading.
  • #12
  • Jun 23, 2013 12:19pm Jun 23, 2013 12:19pm
Lmax or DukasCopy among the top brokers.
Any broker that is regulated in countires where it cost 2000$ to get a broker license is a big warning.
  • #13
  • Jun 23, 2013 12:59pm Jun 23, 2013 12:59pm
Hi, can you say something about Liteforex and Alpari?
"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." — Warren
  • #14
  • Jun 23, 2013 1:40pm Jun 23, 2013 1:40pm
Quoting mr-roma
Hi, can you say something about Liteforex and Alpari?
liteforex looks like a downright scam: http://www.forexpeacearmy.com/public....liteforex.org

What kind of rule is this, it's absolutely insanity!!!
  • #15
  • Jun 23, 2013 7:11pm Jun 23, 2013 7:11pm
I'm lost

still looking for a good broker

since months !!
  • #16
  • Jun 23, 2013 7:52pm Jun 23, 2013 7:52pm
I think that the quality of the broker can only be measured by the quality of their "Miss [broker] Competition".

Compare Instaforex with Dukascopy:

http://www.instaforex.com/beauty_contest_instaforex.php

http://www.dukascopy.com/fxcomm/miss_dukascopy/

I know where I would prefer to put my funds!
  • #17
  • Jun 23, 2013 8:24pm Jun 23, 2013 8:24pm
Quoting card
You only have to worry about transaction costs after you meet the following requirements: 1. You'e trading 10+ times a day. 2. You have been consistently making money for at least 6 months. If you are doing both the above, time to think about cutting transaction costs, to boost profits. BTW, MB pays you for limit orders! And their liquidity is great. Their server is down every now and then, but you can always call the desk and get out of your position. Unless you're highly leveraged and the position is moving against you super fast, the time it...
Don't agree, mbt liquidity and spread is poor for non EU.
  • #18
  • Jun 23, 2013 10:47pm Jun 23, 2013 10:47pm
Quoting pbb
{quote} Don't agree, mbt liquidity and spread is poor for non EU.
Depends on what volume you're trading. They are 1M up at least on all major pairs. So, you could easily put on nice sized positions. If you have a really large account, then you're better off elsewhere but for small accounts they're very good.
  • #19
  • Jun 24, 2013 8:37am Jun 24, 2013 8:37am
One of the problems according to me, the minimum required amount for a deposit with a good broker is a bit higher than a retail one. Of course ECN Brokers are better, but the net is full with ads of these so called "bad brokers". Everywhere I surf , I see ads like this.
  • #20
  • Jun 25, 2013 2:38am Jun 25, 2013 2:38am
Awful brokers suggest big bonuses for nothing and newbies are taken in on this promised money.
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