Why Is Everything Free and Cool With Forex ? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Everything to Nothing to get Everything? 7 replies

Cool and Free Chart App (can be extended) 8 replies

Why is it everything stops at July? 1 reply

Why Is Everything Free and Cool With Forex ?

  • #1
  • First Post: Sep 11, 2006 3:28pm Sep 11, 2006 3:28pm
I mean, no complaints here, but I have to wonder why is it that I can get real time charts and data for free and super cool charting softwares like MT4 that in addition to the coolest indicators, it allows you to customize AND manually back test charts to find out how you systems work out.

I mean, with stocks, forget about it, you gotta pay at least $100 per month to have all of these things.

Also, here we can daytrade as much as we want, without having to worry about 3 day settlement rules and the "no more than 3 roundtrips per week if you have less then $25,000" rule.

It all looks too good to be true.

So yeah, why is it like that ?

Can all this soon change if forex becomes even more popular ?

I hope not...but I heard that the daytrading rules of stocks got more stricht in the last 5 years so....so techinally we are at risk, right ? ( and by we I mean those of us who only have a copule thousand dollars and not $25K).

Peace
"Lunch ? Lunch Is For Wimps !"
  • #2
  • Sep 11, 2006 3:30pm Sep 11, 2006 3:30pm
Quoting MrFuture
I mean, no complaints here, but I have to wonder why is it that I can get real time charts and data for free and super cool charting softwares like MT4 that in addition to the coolest indicators, it allows you to customize AND manually back test charts to find out how you systems work out.

I mean, with stocks, forget about it, you gotta pay at least $100 per month to have all of these things.

Also, here we can daytrade as much as we want, without having to worry about 3 day settlement rules and the "no more than 3 roundtrips per week if you have less then $25,000" rule.

It all looks too good to be true.

So yeah, why is it like that ?

Can all this soon change if forex becomes even more popular ?

I hope not...but I heard that the daytrading rules of stocks got more stricht in the last 5 years so....so techinally we are at risk, right ? ( and by we I mean those of us who only have a copule thousand dollars and not $25K).

Peace
maybe if you give the idea to somebody it could change...

enjoy it when is free, when is not, open an mt4 account
  • #3
  • Sep 11, 2006 3:43pm Sep 11, 2006 3:43pm
Hi,

I think that's the good thing about trading forex...but the reason why we get those things free might be related to the statistical fact that 95% of forex traders lose money.

It may be that the industry needs new suckers coming, so to speak. So so long as the majority of traders keep losing money, we are safe.
My two pips...
  • #4
  • Sep 11, 2006 3:56pm Sep 11, 2006 3:56pm
Quoting spartan
Hi,

I think that's the good thing about trading forex...but the reason why we get those things free might be related to the statistical fact that 95% of forex traders lose money.

It may be that the industry needs new suckers coming, so to speak. So so long as the majority of traders keep losing money, we are safe.
My two pips...
It must be it, 'cause I really feel that most brokers throw you freebies in a desperate attempt to have you as their customer.

As far as loosing money, most people do, but isn't it the same for stocks ? Yet stocks' services are expensive, but I believe it has to do with stocks being more mainstream.

The only difference with forex is that it moves much faster therefore it creates that huge fear of loosing all your account in a few hours. Like pennystocks.....people just avoid them for the fear they have.

Future
"Lunch ? Lunch Is For Wimps !"
  • #5
  • Sep 11, 2006 4:01pm Sep 11, 2006 4:01pm
There are 95% of people playing the game, who pay for this 'free' stuff.. in many different ways...
Why are drinks free at casinos?

Quoting MrFuture
I mean, no complaints here, but I have to wonder why is it that I can get real time charts and data for free and super cool charting softwares like MT4 that in addition to the coolest indicators, it allows you to customize AND manually back test charts to find out how you systems work out.

I mean, with stocks, forget about it, you gotta pay at least $100 per month to have all of these things.

Also, here we can daytrade as much as we want, without having to worry about 3 day settlement rules and the "no more than 3 roundtrips per week if you have less then $25,000" rule.

It all looks too good to be true.

So yeah, why is it like that ?

Can all this soon change if forex becomes even more popular ?

I hope not...but I heard that the daytrading rules of stocks got more stricht in the last 5 years so....so techinally we are at risk, right ? ( and by we I mean those of us who only have a copule thousand dollars and not $25K).

Peace
  • #6
  • Sep 11, 2006 4:07pm Sep 11, 2006 4:07pm
1) You DO pay for many of those things. It is just baked into the spread.

2) Free forex demo accounts are so because the majority of the expense associated with stocks and commodities is billed by the exchanges they trade on. No exchange, no expense. The platform becomes a marketing tool paid for by the spreads on live account transactions.

3) Forex is an international market. The SEC can place whatever restrictions on forex that they wish, but that doesn't mean anyone outside of America needs to follow them. Very few brokers are actually based in America and as such are not within their justistiction. So I wouldn't worry about crazy account requirements any time soon.
  • #7
  • Sep 11, 2006 4:15pm Sep 11, 2006 4:15pm
nothing is free.
  • #8
  • Sep 11, 2006 4:19pm Sep 11, 2006 4:19pm
Quoting raczekfx
There are 95% of people playing the game, who pay for this 'free' stuff.. in many different ways...
Why are drinks free at casinos?
LOL, I opt for the buffet.
Profit is where readiness meets Opportunity
  • #9
  • Sep 11, 2006 4:54pm Sep 11, 2006 4:54pm
Quoting raczekfx
There are 95% of people playing the game, who pay for this 'free' stuff.. in many different ways...
Why are drinks free at casinos?

The odds are allways on the side of the house! They allways win in the long run.
  • #10
  • Sep 11, 2006 8:02pm Sep 11, 2006 8:02pm
I think spartan and darkstar hit the nail on the head. There does seem to be a proliferation of FX traders and brokers (trading firms). So, more gamblers = more casinos needed. The learning curve is long and extremely bumpy. The waterfall of information that new traders are bombarded with is overwhelming. I'm glad I started trading 10 years ago....now if I could only make some money...;-)
  • #11
  • Sep 11, 2006 8:36pm Sep 11, 2006 8:36pm
Quoting swingkong
The odds are allways on the side of the house! They allways win in the long run.
With traders using martingale strategies, disrespecting position sizing and proven money management techniques as well as demanding 400:1 leverage all the while not using stop losses and being satisfed with 10 pips profit after paying a 4 pip spread they aren't exactly making it tough on the brokers to make a profit.
  • #12
  • Sep 11, 2006 8:38pm Sep 11, 2006 8:38pm
Quoting Palmer
I'm glad I started trading 10 years ago....now if I could only make some money...;-)

I really hope for you that you are being sarcastic....if you did not get it after 10 years....oh boy.....get into something else
"Lunch ? Lunch Is For Wimps !"
  • #13
  • Sep 11, 2006 8:42pm Sep 11, 2006 8:42pm
Yes, I'm being sarcastic...why be serious. What I meant to say was, I'm glad I started trading 10 years ago, now if I could only clean my room....
  • #14
  • Sep 11, 2006 8:46pm Sep 11, 2006 8:46pm
Quoting Palmer
Yes, I'm being sarcastic...why be serious. What I meant to say was, I'm glad I started trading 10 years ago, now if I could only clean my room....
You see, sounds nicer now
"Lunch ? Lunch Is For Wimps !"
  • #15
  • Oct 13, 2009 2:37am Oct 13, 2009 2:37am
nothing is free...its a kind of business tactics they know once u know amount of money in this field definitely u gonna open a real account.
  • #16
  • Oct 13, 2009 2:42am Oct 13, 2009 2:42am
I don't know.... a lot can change in three years.
  • #17
  • Oct 15, 2009 11:57am Oct 15, 2009 11:57am
Quoting Darkstar
1) You DO pay for many of those things. It is just baked into the spread.

2) Free forex demo accounts are so because the majority of the expense associated with stocks and commodities is billed by the exchanges they trade on. No exchange, no expense. The platform becomes a marketing tool paid for by the spreads on live account transactions.

3) Forex is an international market. The SEC can place whatever restrictions on forex that they wish, but that doesn't mean anyone outside of America needs to follow them. Very few brokers are actually based...
it's actually the CFTC that regulates Forex, not the SEC, but other than that, you are correct.
  • #18
  • Last Post: Oct 15, 2009 1:33pm Oct 15, 2009 1:33pm
1) Forex market is, for the most part, unregulated. The CFTC put that stupid FIFO requirement on US brokers... but people just switched to a broker outside the US. No problem. The CFTC cannot put regulations on shops not in the US.

2) Most bucketshops are so profitable they don't need to charge any extras. They just need to focus on getting a new set of customers to replace the ones that bust out and give up. Since the turnover is so high, they make it as easy as possible for new customers to sign up and start trading. When you know (to a mathematical certainty) that the vast, vast majority of new customers will be losing their account balance to you, it makes attracting those new customers the most important part of what they do.
0 traders viewing now