All Forex Brokers are dishonest! Choose yours

[f-man]

After being a member of FPA for a while and learning many things I never realized before, I see things from a different angle today.

Unexpectedly I found my self in an office of a manager of a Forex Brokerage. I did not know that I was actually visiting a Forex Broker, because we had a meeting with this person to discuss a totally different business deal in the line of my normal profession. It was a strange feeling to have all these monitors with MT4 terminals around me and I tried to hide my strange smile.
I pretended that I had no idea about this "Forex thing" and asked him a few questions after we finished discussing the other business we had together.
It is known that most brokers are your opponents and hedge your trades, but to actually see it happening was an interesting experience. He actually showed me a trade on a 400k account going wrong (for the trader) and was very happy about it. He also told me that the spread they are charging is just a fraction of their earnings.

This experience and the recent news with the court case filed against FXCM, are just further confirmations that Forex Trading is not at all fair for the average retail trader. We fight against the broker for the same piece of the cake, but while we have a plate, they have a plate and also the knife! They have the option to cut the cake how they prefer.

We have seen many cases, where traders have worked hard for long time to establish a profitable strategy and then can not cash out their earnings.

In my opinion, the most important step in entering the Forex market is to have the less dishonest Broker. You have to be 99% sure that if all their tricks will not work against your trading and at the end you are profitable, you will then get your money! Do not leave your money for long time with your broker. If you are profitable, withdraw money regularly. It might be bad for the growth of the account and you will end up with a smaller profit, but the money will be in your bank!

Read the thread of Pharaoh:
https://www.forexpeacearmy.com/fore...p/2333-how-select-forex-broker.html#post54964
And then read it again. Follow the recommendations. Read all the posts that were made in this thread. You will find information and one day you will be thanking FPA for it!

Happy trading to everybody.

 

[RahmanSL]

f-man, then it's no wonder at all that no Broker dare lay claim to being honest & trustworthy in my thread.

Thanks for sharing your experience and all the best in outsmarting your broker!

 

[Pharaoh]

Any chance of going back with a hidden video camera? Getting a broker on camera bragging about how a clients losses are his gains would be priceless.

 

[f-man]

Any chance of going back with a hidden video camera? Getting a broker on camera bragging about how a clients losses are his gains would be priceless.

Too bad that these priceless events happen when you don't expect them

But now that you brought me to the idea.... I think I will see him again:cute:

 

[forextofx]

Too bad that these priceless events happen when you don't expect them

But now that you brought me to the idea.... I think I will see him again:cute:

Is your story true? If so, yeah, go for it and record all this!!
I heard once something similar but never saw someone who actually does it.

I my self use an autotrader and I trust my broker, I get a nice return day by day

If this changes one day, yes I'll join you and visit those guys with a hidden cam and the press as my security.

 

[fxfrench]

Gloating about a loss aside, I'm surprised this idiot showed you a client's account without permission from the client. What country was this in? Can they be prosecuted for such a blatant breach of trust and privacy law?

 

[f-man]

Gloating about a loss aside, I'm surprised this idiot showed you a client's account without permission from the client. What country was this in? Can they be prosecuted for such a blatant breach of trust and privacy law?

It's not that we had a two hour discussion on a specific customers' account.
I was just lucky enough to actually see on the screen what happened within maybe 2 minutes and at that exact moment I asked him "What happened now?"

I could see the trade, the lot size and the equity of the account. He didn't know that I can understand everything that there was on the screen.
I don't know who the customer was or anything else about him/her.

 

[PipStar]

In my opinion, the most important step in entering the Forex market is to have the less dishonest Broker. You have to be 99% sure that if all their tricks will not work against your trading and at the end you are profitable, you will then get your money! Do not leave your money for long time with your broker. If you are profitable, withdraw money regularly. It might be bad for the growth of the account and you will end up with a smaller profit, but the money will be in your bank!

Great quote which I have highlighted in bold and absolutely true!

And the rest is good advice too!

 

[Jason Rogers]

This experience and the recent news with the court case filed against FXCM, are just further confirmations that Forex Trading is not at all fair for the average retail trader. We fight against the broker for the same piece of the cake, but while we have a plate, they have a plate and also the knife! They have the option to cut the cake how they prefer.

Hi f-man,

If your broker is acting as the market maker, then the broker has the option to cut the cake how they prefer. A broker acting as the market maker (using a dealing desk) can control the trading environment such as pricing, spreads, and liquidity. What you saw happening is what we have been saying all along about the risks of trading against a dealing desk broker. When your broker is acting as the market maker, your losses can equate to the brokers profit, and your profit can equates to the brokers loss.

With NDD (STP) forex execution, every trade is executed back to back with a back thereby immediately hedging the trade. Whether your trade ends in a profit or loss has no impact on FXCM's bottom line, and FXCM is compensated through a pip mark-up on the spread. The banks taking the other side of your trades are market makers; however, we feel this setup makes trading more transparent and fair for our traders. For one, NDD means all trading is anonymous. The banks can't see who the traders are. When the orders are executed back to back with a bank, they only see FXCM as the name on the trade. Neither can they see any resting orders such as stops and limits. All resting orders triggered are sent to the banks as market orders so they can't look at the order book. Second, having multiple market makers means there is competition for your orders and no one market maker can control the pricing. But you should also be aware that this means spreads can vary based upon prices being quoted by the banks.

Cheers,

Jason

 

[Boko Maru]

Hi f-man,

Whether your trade ends in a profit or loss has no impact on FXCM's bottom line

I'm not a lawyer, but you might want to be careful about making statements like that on a public forum. The current class action lawsuit against you alleges otherwise, and almost every trader I know that has traded at FXCM seems to agree with all the allegations (including myself).

If evidence surfaces indicating a traders loss DOES impact FXCM's bottom line, your quote in the post above may come back to haunt you and your employer...

FYI for the traders reading this, I have traded for many years and at many brokers, and I can affirm that trading there was rife with suspicious slippage and execution delays that went to my detriment about 80% of the time. Somehow all the crap I experienced at FXCM magically disappeared as soon as I finally made it to a truly honest broker. Interesting how now at my new broker the slippage goes in my favor as often as it goes against me.

To each his own and you can make your own decision, but FXCM didn't get it's reputation by accident, and I share my experience here for what it's worth.