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  • #61
  • Jan 16, 2015 4:18pm Jan 16, 2015 4:18pm
Bloomberg article on how FXCM lobbied against a proposal to reduce leverage.

http://www.bloomberg.com/news/2015-0...-went-bad.html

The article is insinuating that, IF leverage was lowered FXCM would be in a better shape.

I kind of agree. I'm not against a reduction to ...lets say 20:1 or even 10:1

More margin will reduce the brokers overall risk but increases the client risk due to e bigger loss.

We are the weakest link so retail traders will end up with the worst part of the deal.
So, you think you have rights? LOL
  • #62
  • Jan 16, 2015 4:25pm Jan 16, 2015 4:25pm
Quoting ForexOracle
Bloomberg article on how FXCM lobbied against a proposal to reduce leverage.
...
We are the weakest link so retail traders will end up with the worst part of the deal.
Of course, the losses here (and they were in the banks and the hedge funds as well, which is evidence of my following comment) were not due to leverage per se; they were due to the interbank market freezing up for more than an hour. Most on line brokers automatically sell out at zero equity, and most traders will not allow themselves to get to that point, regardless of leverage. In an announcement market, this may mean a bit under water, sure. But not 16 times equity because there is no offer for your francs for more than an hour.
  • #63
  • Jan 16, 2015 4:26pm Jan 16, 2015 4:26pm
Quoting OldQuant
{quote}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....
Hey thanks for the helpful recomendation oldquant! this is the 2nd time someone has suggested IB to me.. since they don't offer things like MetaTrader, do you think I could get away with using my $100 dollar think or swim account to do all the charting, and then just use my real IB account to make trades? Or perhaps data might be skewed from one to the other? Also, what do you think of TD Ameritrade or Oanda in comparison to Interactive Brokers? They seem like giants with perhaps good regulation standards or whatnot... also Oanda is announcing they are just wiping the negative CHF balances people incurred due to this fiasco, which sounds like a solid thing to do for customers...

It's hard for me to make a decision on a broker, everywhere I go there's bound to be someone who lost their money saying bad things about practically any broker I mention...
  • #64
  • Jan 16, 2015 4:28pm Jan 16, 2015 4:28pm
Quoting OldQuant
{quote}Of course, the losses here (and they were in the banks and the hedge funds as well, which is evidence of my following comment) were not due to leverage per se; they were due to the interbank market freezing up for more than an hour. Most on line brokers automatically sell out at zero equity, and most traders will not allow themselves to get to that point, regardless of leverage. In an announcement market, this may mean a bit under water, sure. But not 16 times equity because there is no offer for your francs for more than an hour.
Agree but take a look on the tone of the article.......it is all about the bad consequences of leverage.


‘Keen Eye’
The client losses are shining a spotlight on U.S. regulators’ oversight of retail currency trading and whether they stopped short of necessary curbs to protect customers. In contrast to other markets, investors buying stock with borrowed money must put up at least 50 percent of the purchase price under Federal Reserve rules. The CFTC will probably move to review past efforts to limit currency-trading risks, former officials say.
“Leverage is a big issue that CFTC probably will want to look at as well as increasing transparency and maybe the capital buffer,” Sharon Brown-Hruska, a former commissioner at the CFTC and vice president at the NERA Economic Consulting firm, said in a phone interview.
Bart Chilton, who stepped down last year as a CFTC commissioner, agreed.
“Because of this circumstance, regulators will definitely have a keen eye towards reviewing if the rules and regulations are appropriate,” Chilton said in an interview.
So, you think you have rights? LOL
  • #65
  • Jan 16, 2015 4:29pm Jan 16, 2015 4:29pm
Just a month ago the swiss pushed for a GOLD standard, that would of been way worse then this

The race to the bottom continues
Learn, a forex trader must, unlearn and relearn he will.
  • #66
  • Jan 16, 2015 4:32pm Jan 16, 2015 4:32pm
Quoting bobbyspider
do you think I could get away with using my $100 dollar think or swim account to do all the charting, and then just use my real IB account to make trades? Or perhaps data might be skewed from one to the other?
Sure you can. What you find is that the retail fx "spread based" houses are virtually always outside the IB spread. That's by design, of course. If a spread house is quoting 9 - 11, and someone like IB is quoting 10 - 10.5, then the broker can take a customer buy at 11 (they're short) and immediately lay it off at the IB market of 10.5 for a half pip. It's just like the old pink sheet days of stocks, when there was an inside spread and an outside spread, so the brokers could always manage their customer risk and make a markup at the same time.
  • #67
  • Jan 16, 2015 4:35pm Jan 16, 2015 4:35pm
Quoting OldQuant
{quote}Of course,
Hey, good to see you still kickin, OldQuantStud.

IB is a good place to trade, good pricing. Their trading platform & analytics are not as good as elsewhere, though. So, I keep a TDA account so I can use Thinkorswim & just go on IB to manage trades. A $10k min balance at IB allows you to trade all instruments with common equity - I think they may still call it a "Universal Account". So you can do interesting things - hedge your spot fx trades with fx futures options, for instance, or make any number of fine messes.

Good Luck All.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #68
  • Jan 16, 2015 4:42pm Jan 16, 2015 4:42pm
Quoting The Fool
{quote} Hey, good to see you still kickin
You as well. I'm still kickin, and still trading this lunacy. I got out of the habit of this site when Really Useless died. I came back today for obvious reasons.

Back to topic, I hope what is done is to move to a mandated risk management based margin system like CME uses. Remember, CME margins on fx futures are not significantly less than on retail forex. Then, if they were paying attention to the Jim Grants and the Swiss wise men sounding alarms, they could have jacked up the margins, or even pulled the pair from the trading docket.

Margin/leverage isn't the problem. Risk management/Black Swan events are the issues.
  • #69
  • Jan 16, 2015 4:48pm Jan 16, 2015 4:48pm
Exactly, What was FXCM thinking!!
  • #70
  • Jan 16, 2015 4:49pm Jan 16, 2015 4:49pm
Quoting OldQuant
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?
lol, who knows? Must be an algorithm somewhere. If you start posting again, maybe you can get a little red booger by yer name like me. (I'll sell it to ya for $4.99.)
"If The Fool persists in his Folly he will become wise." - William Blake
  • #71
  • Jan 16, 2015 4:52pm Jan 16, 2015 4:52pm
Quoting The Fool
{quote} Hey, good to see you still kickin, OldQuantStud. IB is a good place to trade, good pricing. Their trading platform & analytics are not as good as elsewhere, though. So, I keep a TDA account so I can use Thinkorswim & just go on IB to manage trades. A $10k min balance at IB allows you to trade all instruments with common equity - I think they may still call it a "Universal Account". So you can do interesting things - hedge your spot fx trades with fx futures options, for instance, or make any number of fine messes. Good Luck All.
hey thanks for the info fool.. what would you think is the smallest time frame that could be traded using this method of TDA charting and then actual execution with IB? I could picture it getting messy if I had conflicting charts/numbers if I were trying to scalp on 5 or 15 minute time frames... thanks for the help guys! much appreciated.
  • #72
  • Jan 16, 2015 4:52pm Jan 16, 2015 4:52pm
Quoting The Fool
{quote} lol, who knows? Must be an algorithm somewhere. If you start posting again, maybe you can get a little red booger by yer name like me. (I'll sell it to ya for $4.99.)
I'm quoting 2.99 bid 6.99 ask.

Does this replace the old "rank" system? I don't even remember how it went, but I remember you had to have some level to post in Really Useless. All that rank bullshit is just that.
  • #73
  • Jan 16, 2015 4:56pm Jan 16, 2015 4:56pm
Quoting Fx-Baron
Exactly, What was FXCM thinking!!
Their risk management failed...but again who could predict a 4000 pip drop in 5 min.
So, you think you have rights? LOL
  • #74
  • Jan 16, 2015 4:56pm Jan 16, 2015 4:56pm
Quoting bobbyspider
{quote} hey thanks for the info fool.. what would you think is the smallest time frame that could be traded using this method of TDA charting and then actual execution with IB? I could picture it getting messy if I had conflicting charts/numbers if I were trying to scalp on 5 or 15 minute time frames... thanks for the help guys! much appreciated.
uuhhh, not sure what exactly you're axing there, but I daresay you can trade as fast as your finger can work the mouse, there are no real exploitable cross-platform arb possibilities, if that's what you mean...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #75
  • Jan 16, 2015 4:57pm Jan 16, 2015 4:57pm
I have to go. Now I remember why I forced myself to withdraw from the FF habit. I just pissed away an hour since the markets closed, my sheep need water, and the sun is going down. Nice chatting.

The Fool, I'll be back, though. Any threads with good signal/noise ratios you might recommend.
  • #76
  • Jan 16, 2015 4:58pm Jan 16, 2015 4:58pm
Quoting OldQuant
{quote}I'm quoting 2.99 bid 6.99 ask. Does this replace the old "rank" system? I don't even remember how it went, but I remember you had to have some level to post in Really Useless. All that rank bullshit is just that.
Yours. No vouching anymore. Idk why they bother with any of it...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #77
  • Jan 16, 2015 5:48pm Jan 16, 2015 5:48pm
So if you lost money having a SL they wouldn't honor the stop loss? How about if you traded in the right direction would it still be your profit?
  • #78
  • Jan 16, 2015 5:55pm Jan 16, 2015 5:55pm
I trade through Oanda and they honored my SL. I also read that FXCM got financing. Yeah, some small-fry market makers went bust, but one could view the SNB
event as a stress test for trading firms. Some were way under-capitalized and probably shouldn't even have been in business in the first place. The catharsis, though painful, is needed occasionally. See who's left standing and trade through them.
  • #79
  • Jan 16, 2015 6:24pm Jan 16, 2015 6:24pm
As Buffett once said "it's only when the tide goes out that you get to see who's been swimming naked".
  • #80
  • Jan 16, 2015 7:06pm Jan 16, 2015 7:06pm
I lost $904 in this bloody SNB thing yesterday! fxcm will pay me back? I doubt it! I was sleeping in USA when this thing happened in Europe. My current A/C balance now is $452!!! What to do?
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