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Forex changed forever!

  • #41
  • Jan 16, 2015 1:44pm Jan 16, 2015 1:44pm
I do not post here often anymore but did want to stop in and say I hope every retail trader on Forex Factory comes out of this untouched. I left trading forex a long time ago for this reason alone. I went into Futures where I considered my money safer due to segregated accounts and being insured since I am in the USA. Of course no one wants to get corzined as the MF Global debacle but being insured and a centralized data feed where brokers can not manipulate was the correct path for me.

Forex appeals to most traders due to under capitalization. Its a way to make money for the small trader who is unable to open a futures account because he does not have enough cash or take money from a small trader who does not have the cash to open a FX account with a powerhouse like citifx.

Looking at this situation and depending on who gets hurt, I personally feel retail FX will still be around but traders will no longer be able to open up accounts with $500. FX will likely use the futures policies and require 5k or more for accounts to be open. Also will adopt margins and become strict like futures. You will have day margins and overnight margins. So if swing trading they may want 5k for overnight margins per contract. Each contract will be roughly $10 a pip/tick. They may offer micro or mini versions but they will still be a minimum of $1 to $5 a pip/tick.

In summary, I think the 10 cents or 1 cents a pip days of trading will be coming to an end by summer 2015. You will either have to pony up funding an account,save money to open an account or find a new hobby. I truly hope I am wrong because everyone has to start somewhere. Its a rich man's world where the little guy is always screwed. I wish everyone of you all the best and hope anyone effected by the SNB is not sought after from collectors.
  • #42
  • Edited 2:02pm Jan 16, 2015 1:50pm | Edited 2:02pm
Quoting nawlins51
I do not post here often anymore but did want to stop in and say I hope every retail trader on Forex Factory comes out of this untouched. I left trading forex a long time ago for this reason alone. I went into Futures where I considered my money safer due to segregated accounts and being insured since I am in the USA. Of course no one wants to get corzined as the MF Global debacle but being insured and a centralized data feed where brokers can not manipulate was the correct path for me. Forex appeals to most traders due to under capitalization....
Nawlins,
I too have been looking into moving my trading to the futures market. Can you give some tips on how we would go about selecting a reputable broker? Maybe you can recommend one, or share some insights on how you were able to make the transition? Would most greatly appreciate any feedback. If you prefer to respond privately, pls send me a PM. Thank you.
  • #43
  • Jan 16, 2015 1:55pm Jan 16, 2015 1:55pm
Calm down everybody. If flying wasn't banned after 9/11 sure as hell retail forex trading won't be either.
  • #44
  • Jan 16, 2015 2:11pm Jan 16, 2015 2:11pm
Quoting MKFXTrader
{quote} Nawlins, I too have been looking into moving my trading to the futures market. Can you give some tips on how we would go about selecting a reputable broker? Maybe you can recommend one, or share some insights on how you were able to make the transition? Would most greatly appreciate any feedback. Thank you.
Well the first thing you want to do with futures market is find a platform you will like. A lot of these platforms are free when only on demo and yes you can use a live feed when simulating. Most good platforms are not free. Some or a monthly charge or one time charge or option of both. Thats the crappy part. I use Ninjatrader. There are other platforms like Multicharts,Tradestation,Sierra,Market Delta,etc,etc.

When finding a platform also make sure your broker offers that platform. For example, Ninjatrader is now their own brokerage so buying Ninjatrader platform can now only be used with Ninjatrader brokerage unless you already own a lifetime license prior to July 2014.

Also demo with several data feeds. Try continuum, Rithmic etc etc until you like one. I use Rithmic and it cost me an extra 30 cents round trip because its a faster feed with less latency in my opinion. If swing trading a data feed like continuum may be all needed but for me as a day trader I use Rithmic.

There are a lot of brokers out there. I am with Ninja since I use their platform. I figured its a one stop shop for issues should they arise. Optimus futures is another good one. Amp is another but have several folks i know who do not like their customer service. Tradestation is another brokerage who offers futures and FX. They are a small company and with the tradestation platform you can only trade with tradestation brokerage. A lot of folks like them but one of my buddies I trade with has used them in the past and says slippage on CL(crude) was bad at times. Is it now I do not know.

Any other questions pm me. We can get on skype and chat about it. The move from FX to futures has more moving parts which can feel overwhelming at times.
  • #45
  • Jan 16, 2015 2:14pm Jan 16, 2015 2:14pm
Quoting EnoFX
Calm down everybody. If flying wasn't banned after 9/11 sure as hell retail forex trading won't be either.
Nobody is stating retail FX will be banned. People like myself see more regulation coming into the scene making it harder for smaller traders who want to open a $500 account impossible. Like I said in my first post in this thread, it all depends who has been hurt from this debacle. What that means is if someone like me is hurt from it then you will not see regulation. If politicians or their close friends who buy politicians are hurt, expect tougher regulations.
  • #46
  • Jan 16, 2015 2:17pm Jan 16, 2015 2:17pm
lol
http://www.zerohedge.com/news/2015-0...t-cnbc-reports
  • #47
  • Jan 16, 2015 2:20pm Jan 16, 2015 2:20pm
I think most people are not freaking out. Unless you have a tone of money on FXCM.

I understand retail trading is not systemic and the world is interested on things other than the demise of forex brokers.

In my case i'm just trying to forecast what changes I will possibly face as a trader.

So in a near future

I may have to trade with less brokers due to margin increase.

I may have to face 10:1, 5:1 or even no leverage ( which means more margin anyways)

And i may have to pay more in commissions and spreads do to brokers new risk models.

Good brokers like IB ad FXCM got burned so the MM philosophy may start to creep back.
So, you think you have rights? LOL
  • #48
  • Jan 16, 2015 2:25pm Jan 16, 2015 2:25pm
Quoting nawlins51
lol http://www.zerohedge.com/news/2015-0...t-cnbc-reports
Yep!! According to CNBC the deal is closed.

So the Bloomberg chat gossip turned out to be true.

I guess FXCM was TOO BIG TO FAIL !
http://www.cnbc.com/id/102343957
So, you think you have rights? LOL
  • #49
  • Jan 16, 2015 2:33pm Jan 16, 2015 2:33pm
Quoting CrucialPoint
People are very gullible and naive Is this the first time such catastrophe occurred? >>>>> NO. It is a publicity stunt that "poor us brokers, we lost $millions".... I wonder how much they paid the representative to deliver such a negative picture? *****People might not know it. When price moves by huge numbers in minutes, their computer halts everything/all trading. (This is a big secret they don't tell you).***** Now this is a big magician trick. You make people look at one hand (Poor us brokers, we lost money)..... and on the other hand...
So you think the 300M infusion into FXCM is all fake?
So, you think you have rights? LOL
  • #50
  • Jan 16, 2015 2:50pm Jan 16, 2015 2:50pm
Now that they are bailed out the next move for FXCM will be changes on their pricing structure.

I bet they will go back to their 2.5 pip spread on the E/U
So, you think you have rights? LOL
  • #51
  • Edited 3:09pm Jan 16, 2015 2:58pm | Edited 3:09pm
Quoting ForexOracle
{quote} So you think the 300M infusion into FXCM is all fake?
NO, its not fake. Oh they will get their 300M.

I guess you don't have any real life experience of running a business

They will get:

  1. 300M
  2. all accounts that had buy CHF trades
  3. their own trades on short CHF
  4. plus all the put options on FXCM 92% decline


Can you see the big smile on their faces?

@ ForexOracle: You are such an excellent employee, you come work for me. The world need more employees who thinks like you (forgive my sense of humor)

  • #52
  • Jan 16, 2015 3:02pm Jan 16, 2015 3:02pm
CNBC already starting to beat the drums of why Forex trading is dangerous.

http://www.cnbc.com/id/102345056

A little snippet:

According to Forex.com, which is a retail foreign exchange broker and is owned by publicly traded Gain Capital, the company does "reserve the right to hold clients responsible for large debit balances and in special circumstances." Its website also encourages clients to manage use of leverage carefully, since use of more leverage increases risk.
Bottom line, the pain of the SNB's removal of its currency peg hit numerous parts of the market, and will lead to outsized financial losses for the big guys and the little guys. On a relative basis, retail traders may feel more pain than their bigger counterparts.
The recent market action serves as a potent reminder of just how dangerous leverage can be when price action moves swiftly, and without warning.
  • #53
  • Jan 16, 2015 3:08pm Jan 16, 2015 3:08pm
"Trading off-exchange foreign exchange on margin carries a high level of risk and is not suitable for all investors. "

Which part of that do you people not understand? Quit your whining and man-up.
  • #54
  • Jan 16, 2015 3:13pm Jan 16, 2015 3:13pm
Quoting nawlins51
{quote} Well the first thing you want to do with futures market is find a platform you will like. A lot of these platforms are free when only on demo and yes you can use a live feed when simulating. Most good platforms are not free. Some or a monthly charge or one time charge or option of both. Thats the crappy part. I use Ninjatrader. There are other platforms like Multicharts,Tradestation,Sierra,Market Delta,etc,etc. When finding a platform also make sure your broker offers that platform. For example, Ninjatrader is now their own brokerage so...
Truly appreciate your time Nawlins. I'll take you up on that offer, as I venture further into my move to futures. I've been wanting to make a move for awhile, but just had no idea where to start. Thanks again. I'll stay in touch by PM.

Cheers my friend.
  • #55
  • Jan 16, 2015 3:18pm Jan 16, 2015 3:18pm
Quoting gravitist
"Trading off-exchange foreign exchange on margin carries a high level of risk and is not suitable for all investors. " Which part of that do you people not understand? Quit your whining and man-up.
None. They don't understand the whole sentence They dont speaka ina Ingleesh

Even this statement:
"Past performance are not indicative of future performance. Past history/price are not indicative of future price."

Nobody understands that, but only few.
Well, more power to those who understands
  • #56
  • Jan 16, 2015 3:31pm Jan 16, 2015 3:31pm
Hey guys, just curious what broker you would recommend if you want to have a 10,000+ sized account? Would have to allow US customer as well. I'm just looking for safety, don't want to lose my account to this kind of shenanigans... thanks
  • #57
  • Jan 16, 2015 3:40pm Jan 16, 2015 3:40pm
Quoting CrucialPoint
{quote} None. They don't understand the whole sentence They dont speaka ina Ingleesh Even this statement: "Past performance are not indicative of future performance. Past history/price are not indicative of future price." Nobody understands that, but only few. Well, more power to those who understands
You guys are killin' me
  • #58
  • Jan 16, 2015 3:57pm Jan 16, 2015 3:57pm
Quoting bobbyspider
Hey guys, just curious what broker you would recommend if you want to have a 10,000+ sized account? Would have to allow US customer as well. I'm just looking for safety, don't want to lose my account to this kind of shenanigans... thanks
I would recommend Interactive Brokers (IB). They offer full forex service, but it's not their main business. They are a commission house (commish on 100K EUR, eg., is around 2.50) but have generally very tight ECN spreads. As I write this, MBtrading is quoting E/U as 15999 - 16371; IB is quoting 16250 - 16300. Very good API, but none of the usual retail things like MetaTrader.

EDIT: I screwed up that MB quote. It should have been 1.15591|1.15670. Now, that's close to end of day, but they still usually show 1+ spreads. IB is rarely over 1.
  • #59
  • Jan 16, 2015 3:58pm Jan 16, 2015 3:58pm
Quoting CrucialPoint
{quote} NO, its not fake. Oh they will get their 300M. I guess you don't have any real life experience of running a business They will get: 300M all accounts that had buy CHF trades their own trades on short CHF plus all the put options on FXCM 92% decline Can you see the big smile on their faces? @ ForexOracle: You are such an excellent employee, you come work for me. The world need more employees who thinks like you (forgive my sense of humor)
So...you are saying they found a sucker to give them 300M?
So, you think you have rights? LOL
  • #60
  • Jan 16, 2015 4:15pm Jan 16, 2015 4:15pm
This is off topic, but I havent been here in over a year, and I forget the local customs. My name down in "viewing" says "low impact member (top 6%)."


Could somebody save me the headache of going through the help/search nightmare, and tell me what the hell that means?
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