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FT - Why would anyone trade forex?

  • #1
  • First Post: Feb 27, 2014 6:22am Feb 27, 2014 6:22am
http://www.ft.com/cms/s/0/66e972dc-9...44feab7de.html
Why would anyone trade forex?
By Jonathan Eley

The odds are stacked against the retail investor
he Financial Conduct Authority has today fined FXCM £4m for a practice it euphemistically
termed “asymmetric price slippage”, and which most of us would describe as ripping off
clients.
The UK part of the company, whose parent is listed in the US, accepted foreign-exchange trades
from retail clients and placed them with other FXCM Group units. “FXCM group kept profits from
favourable market movements between the time the orders were placed and executed, while any
losses were passed on to clients in full,” the FCA found.
In addition, the UK part of the company failed to tell the regulator that it was being investigated in the US for similar.
etc
*************
I have to agree. I am giving up on fx completely. You cant find a honest broker. The markets are manipulated and bankers are getting caught left and right in every single bank and institution.
  • #2
  • Feb 27, 2014 7:37am Feb 27, 2014 7:37am
I find the pessimistic facts you've presented to be true, but I disagree with the pessimistic conclusion.

Look closer. Two reasons to make a profit right there:

Quoting extreme_one
The odds are stacked against the retail investor
Quoting extreme_one
The markets are manipulated
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #3
  • Feb 27, 2014 7:45am Feb 27, 2014 7:45am
Quoting vox dei
I find the pessimistic facts you've presented to be true, but I disagree with the pessimistic conclusion. Look closer. Two reasons to make a profit right there: {quote} {quote}
So you mean you are not a retail trader and that YOU are manipulating the markets?! =)

It's very simple, just compare stock markets traders vs forex traders and their wins.
Banks are getting caught cheating the retail traders. What more is there to say.
Just google any top 10 size forex broker + the word "fine". You will see all of them have been fined.

Only way to make money is to start a forex school online I suppose.
  • #4
  • Feb 27, 2014 7:50am Feb 27, 2014 7:50am
Surely this asymmetric price slippage isn't news to you, if slippage of .1 to even 5 pips is breaking your whole trading model, perhaps you need a better trading approach?
  • #5
  • Feb 27, 2014 7:57am Feb 27, 2014 7:57am
Quoting extreme_one
http://www.ft.com/cms/s/0/66e972dc-9...44feab7de.html Why would anyone trade forex? By Jonathan Eley The odds are stacked against the retail investor he Financial Conduct Authority has today fined FXCM £4m for a practice it euphemistically termed “asymmetric price slippage”, and which most of us would describe as ripping off clients. The UK part of the company, whose parent is listed in the US, accepted foreign-exchange trades from retail clients and placed them with other FXCM Group units. “FXCM group kept profits from...
You would be hard pressed to find any organized system in society that isn't stacked against the individual, in favor or the perpetuation of those within the system and the system itself.
  • #6
  • Feb 27, 2014 8:09am Feb 27, 2014 8:09am
Quoting extreme_one
{quote} So you mean you are not a retail trader and that YOU are manipulating the markets?! =)
Haha, don't be silly No, I'm retail all right. Just saying, don't do anything before you see the bastards's hand.

Quoting Pipocrates
{quote} You would be hard pressed to find any organized system in society that isn't stacked against the individual, in favor or the perpetuation of those within the system and the system itself.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #7
  • Feb 27, 2014 8:50am Feb 27, 2014 8:50am
Quoting jeanlouie
Surely this asymmetric price slippage isn't news to you, if slippage of .1 to even 5 pips is breaking your whole trading model, perhaps you need a better trading approach?
add spread and for many people this is half of their average trades length
  • #8
  • Feb 27, 2014 8:54am Feb 27, 2014 8:54am
Quoting extreme_one
I have to agree. I am giving up on fx completely. You cant find a honest broker.
//----

the surviving brokers, in regulated countries, are probably far more responsible today than 10 years ago..... i use several in the states and have yet to have a single complaint..... ibfx and fxcm/etradefx .....

forex is not for everyone and odds may be stacked against us...... but perhaps those are the very reasons why some of us trade forex.....

in any event, i dang sure wouldn't let $ 3.70 sway my opinion.......h

//---- from the article .....

Affected customers will be fully compensated – the amounts involved added up to about £6m, and FXCM said the average impact on individual traders was $3.70 –
to trade and code, keep both simple... no call to impress....h
  • #9
  • Feb 27, 2014 11:18am Feb 27, 2014 11:18am
Find a edge and take it every time...odds against only matter if you're taking the worst of it on every opportunity.
  • #10
  • Feb 27, 2014 12:51pm Feb 27, 2014 12:51pm
Quoting hayseed
{quote} ibfx and fxcm/etradefx ..... forex is not for everyone and odds may be stacked against us...... but perhaps those are the very reasons why some of us trade forex..... in any event, i dang sure wouldn't let $ 3.70 sway my opinion FXCM said the average impact on individual traders was $3.70


I use FXCM and have zero issues with them
  • #11
  • Feb 27, 2014 3:02pm Feb 27, 2014 3:02pm
The market movers must trick as many people as possible at every turning point, to fill their massive orders. Remember for every sell order there must be a buy order!

They leave signals and markers that can show you their intentions ahead of time. Take news for example , where has price been before the news struck ?

Look at the chart for decision points, where price was considered to cheap or to expensive.

It is easy to blame something/someone else when we do not understand the true reasons behind it............whatever it is!

The market is not random and price shows you where it wants to go next.

Warren
I need to finish something i started
  • #12
  • Feb 27, 2014 3:37pm Feb 27, 2014 3:37pm
Quoting jeanlouie
Surely this asymmetric price slippage isn't news to you, if slippage of .1 to even 5 pips is breaking your whole trading model, perhaps you need a better trading approach?

What about spread from 1 pip to 23pips like Exness?! And they can just point to their "rules" and say not our problem.
  • #13
  • Feb 27, 2014 3:46pm Feb 27, 2014 3:46pm
Quoting yazzie
{quote} I use FXCM and have zero issues with them

Hahahhahahahahahaha. I think I died when i read your post. In what universe do you live?
Dude they were just fined YESTERDAY(26th) for cheating with the spread. Their guy is running around here on FF doing damage control.

FXCM? I don't think so.
  • #14
  • Feb 27, 2014 4:21pm Feb 27, 2014 4:21pm
Quoting GEfx
The Forex was not, and is not, designed for retail trading. In fact, the large banks were against the move to open the Forex to retail traders. Retail brokers are another thing. I use FXCM and FXDD today, and both are very good. No complaints, but I do not trade for 5-10 pips per trade, so I never consider the spread. Trading is difficult work, and is not for everyone. There is no shame in quiting; there is shame in blaming your broker or big banks for your issues.

Hahahahah
http://www.forexfactory.com/showthread.php?t=472838
  • #15
  • Feb 27, 2014 4:34pm Feb 27, 2014 4:34pm
Quoting extreme_one
{quote} Hahahhahahahahahaha. I think I died when i read your post. In what universe do you live? Dude they were just fined YESTERDAY(26th) for cheating with the spread. Their guy is running around here on FF doing damage control. FXCM? I don't think so.
Please don't be a troll. Yes they were fined and I know all about it. I was simply saying that I use them and am very happy. I have a premium account team that is always there to answer any questions I have and I regularly make 5 figure withdrawls via wire with no issue.
  • #16
  • Last Post: Feb 27, 2014 10:03pm Feb 27, 2014 10:03pm
Quoting GEfx
The Forex was not, and is not, designed for retail trading. In fact, the large banks were against the move to open the Forex to retail traders. Retail brokers are another thing. I use FXCM and FXDD today, and both are very good. No complaints, but I do not trade for 5-10 pips per trade, so I never consider the spread. Trading is difficult work, and is not for everyone. There is no shame in quiting; there is shame in blaming your broker or big banks for your issues.
Why is Forex not designed for retail trading ?
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