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Attachments: Reality of FOREX: my experience with brokers + share yours
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Reality of FOREX: my experience with brokers + share yours

  • #461
  • Sep 27, 2016 12:41pm Sep 27, 2016 12:41pm
Quoting TradingLife
{quote} Thanks for the info about Australian brokers - I didnt know that. So it basically means that if something like SNB crisis happens, you dont have to trade EURCHF or USDCHF and loose on your trades, but they can take all your funds to cover their debts. When I was talking with Axiory about the deposit protection under their CySEC regulation, they responded that in case of the broker bankruptcy, it would not affect my deposit as I have the deposit in their partner bank. Based on their reply a bankruptcy trustee cant take any money which are...
And that's just sucks. That's the whole point looking for a secure broker - in case of anything goes, our funds should be secured.

Are there any fx brokers that actually open a separate bank account for each customer?
PW
  • #462
  • Sep 27, 2016 1:31pm Sep 27, 2016 1:31pm
Quoting deltafx
{quote} Your argument is like saying to not divorce from your cheater wife, because there won't be any better,and every women is the same.

Well, that is the world of trading. There are some trustworthy wifes out there. But they are rare. And you will have difficulties to seperate them from the bad ones. Your alternatives is not to trade at all. What do you expect from TradingLife? Sue all scamming brokers? Give you the ensurance that there is one broker that you can completely trust? Even if so, how would you say that TradingLife is not employee of that broker?
May the Pip be with you.
  • #463
  • Sep 27, 2016 6:45pm Sep 27, 2016 6:45pm
Quoting Paul4970
{quote} And that's just sucks. That's the whole point looking for a secure broker - in case of anything goes, our funds should be secured. Are there any fx brokers that actually open a separate bank account for each customer?
No that is not true.

Client Funds arent allowed to be used for day to day operations of the business.

If the broker decides to hedge with an external counterparty and falls into margin call because of a major event, then the external counterparty cannot call on client funds to make up the short fall.
Those customers who have a margin call will be asked to put in more cash.
Failing that the Broker either stumps up more capital of its own or goes bankrupt.
The client funds are segregated and returned to the customer.
  • #464
  • Sep 28, 2016 1:26am Sep 28, 2016 1:26am
Quoting TradingLife
{quote} By DMM do you mean DMM FX - Australia? It seems like they are already closed.
That's right, but they provide service in Japan. However, scam as hell
  • #465
  • Sep 28, 2016 1:29am Sep 28, 2016 1:29am
Quoting TradingLife
{quote} Ive heard that some Japanese brokers are sending to their clients food etc. as bonuses - so traders dont have to step up from their computers and just trade If there is someone from Japan, is this correct? Girls service as deposit bonuses are maybe only a matter of time
Interesting, but I won't move about to Japan to get free lunch
  • #466
  • Sep 28, 2016 1:39am Sep 28, 2016 1:39am
Quoting TradingLife
{quote} Correct, but the Swiss protection up to 100.000 CHF applies only to companies with banking license, right? If there is some regulated broker telling that theyve got the Swiss regulation, but not the banking one, the protection would probably be something like 20 or 25 k CHF. Thanks for the info about Australian brokers - I didnt know that. So it basically means that if something like SNB crisis happens, you dont have to trade EURCHF or USDCHF and loose on your trades, but they can take all your funds to cover their debts. When I was talking...
Only bank can provide forex service under FINMA, so 100.000 CHF protection is for all swiss brokers that are regulated by FINMA, however Swiss broker can have branch in EU like Dukascopy. There are also many "Swiss name brokers" that are unregulated scams or CySec regulated.

That's right, Australian brokers can cover debts from clients funds. Segregation doesn't mean that every client has own account. All clients funds are combined. However if Australian broker bankrupts due to internal problems you will get your funds back.
  • #467
  • Sep 28, 2016 2:04am Sep 28, 2016 2:04am
Quoting Paul4970
{quote} And that's just sucks. That's the whole point looking for a secure broker - in case of anything goes, our funds should be secured. Are there any fx brokers that actually open a separate bank account for each customer?

FCA and FINMA REGULATED (NOT ONLY REGISTERED) brokers keep your money safe until UK and Switzerland don't go bankrupt However, it's not a problem that Australian brokers don't guarantee money protection, because you can deposit small amount of money, trade with big leverage and withdraw everytime you reach satisfying level.

P.S. Why forexfactory editor see error in "everytime"?
  • #468
  • Sep 28, 2016 2:16am Sep 28, 2016 2:16am
Quoting lasty
{quote} No that is not true. Client Funds arent allowed to be used for day to day operations of the business. If the broker decides to hedge with an external counterparty and falls into margin call because of a major event, then the external counterparty cannot call on client funds to make up the short fall. Those customers who have a margin call will be asked to put in more cash. Failing that the Broker either stumps up more capital of its own or goes bankrupt. The client funds are segregated and returned to the customer.

Please read the agreement on any Australian broker website. Here's is how it works: 1000 clients make 100mln debt due to "event", broker must pay LP, but don't have funds because all of those clients went bankrupt, so they use other clients funds. However, I think we won't see any kind of event like "SNB crisis" connected with bankruptcy of broker, because forex world get a lesson and now if any central bank defends their currency all brokers will lower leverage or even exclude this currency from trading.
  • #469
  • Sep 28, 2016 3:01am Sep 28, 2016 3:01am
Quoting deltafx
{quote} Your argument is like saying to not divorce from your cheater wife, because there won't be any better,and every women is the same.
Hehe, interesting comparison I am saying to divorce from your cheater wife, because there is one who will be your right life choice. However all the wives are not platforms, but brokers.
Acta non verba
  • #470
  • Sep 28, 2016 3:33am Sep 28, 2016 3:33am
Quoting Paul4970
{quote} Thank you TradingLife. Yes, I go to FPA now and then, but honestly, sometimes their recommendations make me wonder. Maybe the people on FPA look more into scalping and news trading? I've been with Oanda since 2008, since I trade on Daily timeframe, it was ok. I even got an account manager when I've changed to their Asia Pacific Division. But now their customer support is really bad, they haven't reply to my email for 3 weeks now, regarding my request to define "Invalid Transaction" in my new customer agreement. Perhaps they don't want to...
Some traders consider FPA to not be trustworthy, I consider them to be trustworthy - of course, one can never know all the background behind it. The sure thing is that there are a lot of scamming brokers and if some website with big attention reveals at least a half of the truth, those companies are really angry. As far as I know there is a big rivalry between FPA and instaforex and if you should choose who is telling the truth, itīs probably clear that itīs FPA. I understand with Oanda - you can see here the post of one trader here, it seems like Oanda was taking money from his account every time he logged in or his account was synced with their servers. They also failed to solve this based on his posts.

By Swisstrade do you mean Swissquote? I personally wouldnīt go with Dukas, theyīve got binary options and % deposit bonuses to their "ECN" accounts.
Acta non verba
  • #471
  • Sep 28, 2016 3:35am Sep 28, 2016 3:35am
Quoting Paul4970
{quote} And that's just sucks. That's the whole point looking for a secure broker - in case of anything goes, our funds should be secured. Are there any fx brokers that actually open a separate bank account for each customer?
EU branch of Axiory told me that they open a bank account for each customer. With Swissquote you are opening a banking account as they are a bank itself.
Acta non verba
  • #472
  • Sep 28, 2016 3:38am Sep 28, 2016 3:38am
Quoting Chris1008
{quote} Well, that is the world of trading. There are some trustworthy wifes out there. But they are rare. And you will have difficulties to seperate them from the bad ones. Your alternatives is not to trade at all. What do you expect from TradingLife? Sue all scamming brokers? Give you the ensurance that there is one broker that you can completely trust? Even if so, how would you say that TradingLife is not employee of that broker?
Yep, I agree with this - one can never know. Also of course there is no guarantee that the good ones will never go bad and vice versa. But I am just sharing my own experience and everyone should do his own research, test alternatives and compare and he will see for himself what broker will be the best option.
Acta non verba
  • #473
  • Sep 28, 2016 3:39am Sep 28, 2016 3:39am
Quoting insomniawawa
{quote} That's right, but they provide service in Japan. However, scam as hell
OK, will add them to the first post - thanks for mentioning
Acta non verba
  • #474
  • Sep 28, 2016 3:51am Sep 28, 2016 3:51am
Quoting insomniawawa
{quote} Interesting, but I won't move about to Japan to get free lunch
Hehe, me too its just interesting how brokers across different continents are trying to attract traders. Of course, more beneficial for traders are always better trading conditions and better results than similar offers.
Acta non verba
  • #475
  • Sep 28, 2016 3:52am Sep 28, 2016 3:52am
Quoting insomniawawa
{quote} Only bank can provide forex service under FINMA, so 100.000 CHF protection is for all swiss brokers that are regulated by FINMA, however Swiss broker can have branch in EU like Dukascopy. There are also many "Swiss name brokers" that are unregulated scams or CySec regulated. That's right, Australian brokers can cover debts from clients funds. Segregation doesn't mean that every client has own account. All clients funds are combined. However if Australian broker bankrupts due to internal problems you will get your funds back.
Thanks for explaining, I got it
Acta non verba
  • #476
  • Sep 28, 2016 3:57am Sep 28, 2016 3:57am
Quoting insomniawawa
{quote} Please read the agreement on any Australian broker website. Here's is how it works: 1000 clients make 100mln debt due to "event", broker must pay LP, but don't have funds because all of those clients went bankrupt, so they use other clients funds. However, I think we won't see any kind of event like "SNB crisis" connected with bankruptcy of broker, because forex world get a lesson and now if any central bank defends their currency all brokers will lower leverage or even exclude this currency from trading.
Yep, forex world and companies probably get a lesson, but itīs always better to be prepared. Who knows, Deutsche bank is too big to fail, but if it would go bankrupt, then another crisis like the SNB one can be here. I donīt want to be too skeptical, just be prepared anytime as much as I can.
Acta non verba
  • #477
  • Sep 28, 2016 4:58am Sep 28, 2016 4:58am
Quoting TradingLife
{quote} Yep, forex world and companies probably get a lesson, but its always better to be prepared. Who knows, Deutsche bank is too big to fail, but if it would go bankrupt, then another crisis like the SNB one can be here. I dont want to be too skeptical, just be prepared anytime as much as I can.

Yes, it's true. Avoid all planned speeches, events, news, artificial defended currencies and you should be fine Deutsche Bank is the most leveraged bank in world (in pool of the biggest banks of course). http://uk.businessinsider.com/fdic-r...16-9?r=US&IR=T If it goes bankrupt, before that you will see many strange moves on EURUSD, almost all the time there's big warning on the market before news came out. Good cliche- expect the unexpected
  • #478
  • Sep 28, 2016 1:59pm Sep 28, 2016 1:59pm
Quoting TradingLife
{quote} Why do you think that CySEC is the worst regulation? Under each regulation there is a bad and a good broker. insomniawawa replied that he saw the worst execution with DMM FX - Australia. And they are closed now.
Because it looks like most worst brokers comes from CySEC

Also it looks like most best brokers comes from Australia. Could name quit a few from both regulations. And then UK regulation seems neutral. Besides everyone knows how bad is Greece banks and their economy - Its like broker have to be honest by himself cause regulation wont make them good.
Doubt kills more dreams than failure ever will.
  • #479
  • Sep 28, 2016 2:33pm Sep 28, 2016 2:33pm
Quoting TradingLife
{quote} EU branch of Axiory told me that they open a bank account for each customer. With Swissquote you are opening a banking account as they are a bank itself.
That is exactly what I'm looking for.
Sorry, I meant Swissquote, not Swisstrade.
Thank you for this information.
PW
  • #480
  • Edited 3:11am Sep 29, 2016 2:52am | Edited 3:11am
I told earlier, that you can't believe all negative opinions about brokers, because they are very often created by people that have any idea how market works. Here's great example

http://www.forexfactory.com/showthre...50#post9168050

EDIT: I can see that FF changed title, earlier it was "Tradersway is a fraud"
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