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I`m LOST! Too many "bonuses" and too little trust

Discussion in 'Forex Company Comparisons' started by The Jackal, Dec 2, 2009.

  1. The Jackal

    The Jackal Private

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    Hi, I think its already good that I found this site after googling "UFX Bank" which is offering 50 % (up to $5,000) on the first deposit or even EUR 10,000 !!! (Deltastock) but then their terms and conditions are quite amusing!!

    Same was days ago with xForex.com , while there are plenty of other great offers including big names such Alpari which offers zero commissions on the Pro account.

    There are tons of offers and I`m totally lost trying to start with something small (like $1,000 to $10,000) and after a demo trial with Forex.com (it seems so easy to me that in a few trades I went from EUR 50,000 to Eur 83,000 and trading 2 of the things with the biggest spread there (EUR/AUX and EUR/NZD) but maybe my long experience in euquity trading is helping? I am not sure and that`s why I`s love lots of sound advice please.

    Also, which software do I need, if I do? I see for example on the registration page of eForex I need to choose between WinTrader or Metatrader 4 and I have no clue of the difference.

    And then, I am in rural Australia which a connection that is far from fast......lets say that its around 300 Kbps on average, sometime less, sometime more. Can I do with it or don`t even bother? While trading on the Forex.com demo, I did not have much problems because I was not looking for 100 trades a day but rather 1 or 2 per day on big change of trend....just to get a feeling of it.

    Ok, that`s it, I really need to choose a broker and while I`m tempted by the bonuses, I see too many catches and more importantly I already read of some bad experiences with some so hopefully you can tell me which ones to avoid absolutely.

    At the moment I am trying to choose between:

    Interactive Brokers
    Oanda
    Forex.com (Gain Capital)
    Alpari
    FXCM
    Go Markets
    ActivTrades


    But there are so many out there that I would happy to listen your advices.
    And so far I only tried 2 demos and FXCM has very crappy charts compared to Forex.com but better spreads so its a mess.

    The Australian Go Markets (blue ribbon from a reputable source) writes:



    2. NO DEALING DESK EXECUTION + STRAIGHT THROUGH PROCESSING
    Go Markets offer 100% straight through processing with no dealing desk execution. These features combine to give you the best possible execution speeds and prices. All trades are automatically executed at the market price meaning there are no requotes, ever. No dealing desk execution means you will never suffer from price manipulation or stop-hunting​
    .


    if anyone can explain that....that would be great.


    than also, I think pips and spread are very important but I heard different opinions, some say that no honest broker can offer fixed spreads.

    It`s a jungle out there, with brokers not giving you the real prices or being too slow.

    Then there are the so called Robot software. Is there any really good or as i think, a good experienced trader works just as good if not better? I think that setting up stops and limit orders is just the way to go but I may be wrong.

    And last but not least, is the money we deposit guaranteed if the broker goes pear shaped?

    I asked this to Forex.com and this was the chat:

    Please wait for a site operator to respond.

    You are now chatting with 'Alex M'

    Alex M: Hello, welcome to FOREX.com. May I have your email address to better assist you?

    you: xxxxxxxxx@xxxxxxxxxx.com

    you: hi alex

    Alex M: Hello. How can I help you today?

    you: I am considering opening an account but since I have never traded Forex I`d like to know about security and some worst case scenarios

    Alex M: OK. What are you concerned about.

    you: so what does happen if for some reasons your platform or site experiences some technical problems and say I am on a 200:1 position and can`t follow because the platform is unaccessible?

    Alex M: Those are very rare occasions. We have a 24 hour hotline if you are ever having trouble accessing your account.

    you: yes but rare is not impossible and I have seen everything happening in 12 years of trading on shares, warrants and futures. For istance, there could be an earthquake and your phone lines could be unavailable as well, yet I guess I`d be financially liable for my position, is that right?

    Alex M: We are in New York and New Jersey so there are no earthquakes, luckily.

    Alex M: In instances where you have orders in you will be covered.

    you: I am trying to select the best 2 brokers to test for my first Forex trades so that`s why I am questioning these things

    Alex M: It is totally understandable.

    you: what about the money. Is it guaranteed in the (rare as well) event that the company ends like Lehman Brothers?

    Alex M: No currency trading company in the US offers insurance. We have an office in the UK which offers insurance.

    you: well earlier today someone told me that the company behind Forex.com is Gain Capital and its a UK company...or I am wrong?

    Alex M: Gain Capital is the parent company. However it is located in the US. We have an office set up in the UK which falls under FSA regulation.

    you: that`s why the site asks if I am a Us citizen then

    Alex M: Yes. Did you fill out the application for the US office or the UK office?

    Alex M: GCUK is the UK office.

    you: so there is no way to protect the money once i send to your company?

    Alex M: Your funds will be insured up to 48,000 GBP

    you: Any particular reason for the odd number? thank you

    Alex M: I'm not sure. That is FSA - Financial Services Authority - regulation

    you: Ok, thanks for the info then. I will proceed within few days with the UK office then.

    you: Kind regards,bye

    Alex M: Have a good day.

    you: you too thanks​
     
  2. Stony

    Stony Sergeant

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    Hi jackal,

    I can recommend ActivTrades (Marketmaker, fixed spreads) because of its location and regulation in UK, fine customer service and good execution.

    Maybe for you as an Australian GoMarkets would also be an option. They are STP, which means spreads are variable, sometimes smaller, sometimes bigger than the fixed spreads of marketmakers. But I have no experience with them.

    Get the contract conditions of your favorite brokers and read them carefully. This will answer most of aour questions.

    Concerning bonuses etc.: forget it.

    Regards, Stony
     
  3. The Jackal

    The Jackal Private

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    Hi Stony,

    many thanks for your reply.

    And how about the software?

    Do you have any experience with any? I just read a review of some robot software and they claim 95 success rate.

    But also, they say that other software get you banned from fx brokers while this goes undetected.

    Why would fx brokers deny people to use software? Then it must be successful. But still.....I can`t see why would they deny that.
     
  4. Stony

    Stony Sergeant

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    Hi jackal,

    sorry, I have no experience at all with robots, expert advisers, signal services and so on. The reason: I don´t trust them, and I do not believe their advertised performances. Have a look at "Performance Test" here on the FPA site!

    Think about that: if you had developed a system which produces reliably 1000pips profit per month - would you offer it for sale??? I wouldn´t... besides I´d be busy all day trading with this system. Another reason: if there was a superior trading system, sooner or later all traders would apply this same system. Consequently, trading would dry out, because traders would find no counterpart any more.

    So, you have to develop a flexible trading strategy for yourself. There is no easy way to big money...

    Regards, Stony
     
    1 person likes this.
  5. kubek

    kubek Private

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    I'll try to help you with your questions.

    First of all - dont think about the bonuses. In most cases, you wont see the bonus money on your account at all. The deal is - "you will get your 10% bonus if you trade over 100 lots in 2 months". For beginners that's impossible. Just focus on the brokers with good reputation.

    2. NO DEALING DESK EXECUTION + STRAIGHT THROUGH PROCESSING
    Go Markets offer 100% straight through processing with no dealing desk execution. These features combine to give you the best possible execution speeds and prices. All trades are automatically executed at the market price meaning there are no requotes, ever. No dealing desk execution means you will never suffer from price manipulation or stop-hunting

    this means that broker is not a market marker, your win isnt his loss. You wont get any requotes, but wont always have the exact same price that was on a chart when you sent your request. Good thing is - sometimes you'll get even better price. STP brokers earn money by getting some percent of the spread which you are paying. But beware - last time I checked, gomarkers wasnt STP broker, just simple MM. Things to check, if the broker is really a STP broker:
    - stp brokers dont ever have fixed spreads
    - you cant trade microlots
    - when you place your trade, you cannot set tp and sl then. You have to modify the trade afrer it's on the market
    - you can ask the support who is their liquidity provider, STP brokers should have couple of them.

    The brokers that are 100% STP + MT4: collective fx and jade fx.


    Which trading platform? Personally I'd recommend metatrader 4. It is the most popular platform, easy to use, you can trade with expert advisors and programing them isnt very hard. If you have any other questions I'd be glad to help you
     
    #5 kubek, Dec 2, 2009
    Last edited: Dec 2, 2009
  6. Forexwatchman

    Forexwatchman Sergeant

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    Let me just start with the obvious contradiction from your online chat:
    Alex M: No currency trading company in the US offers insurance. We have an office in the UK which offers insurance.
    you: so there is no way to protect the money once i send to your company?
    ........
    Alex M: Your funds will be insured up to 48,000 GBP

    Ok, and now let me tell you that the broker could have segregated accounts for its clients which means if the company goes bust your money is not included with theirs, so YES you can get that sort of insurance with regards to your money.
    Going back to your earlier stuff, just keep it simple. I would stick with US based, NFA licensed brokers namely FXDD and FXCM (full disclosure I'm with FXDD who's almost there with receiving their licensing).

    Also you said "And so far I only tried 2 demos and FXCM has very crappy charts compared to Forex.com but better spreads so its a mess."

    But I'm not sure what you mean since MT4 is the charting software and those charts are 100% customizable, plus MT4 is the industry standard, there's really no need at this point to use anything else.

    As far as robots go, due to the severe climate in the markets right now, its almost impossible to to get a robot to be consistent no matter what they say mainly because a robot has NO BRAIN. On the flip side a robot removes the role of emotion in one's trading which you have to learn to control anyway on your on to have a career at this so long story short, DON'T bother with the Expert Advisers.

    Sounds like your internet connection is terrible if you're gonna be a scalper, but since you said that's not the case ("I did not have much problems because I was not looking for 100 trades a day but rather 1 or 2 per day on big change of trend....just to get a feeling of it.") then you're fine. Hope I answered some of your questions. You can always ask more.
     
    #6 Forexwatchman, Dec 2, 2009
    Last edited: Dec 2, 2009
  7. The Jackal

    The Jackal Private

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    wow, that`s a lot of things to think about many thanks.

    I will have to ask to "Go Markets" if they are STP or MM, thanks.
    Otherwise do you have a list of brokers who are STP?

    Thanks
     
  8. The Jackal

    The Jackal Private

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    hi thanks, no I don`t think I`m gonna be a scalper but I may increase my trades depending on how it goes, but not immediately anyway. If I make good money then I may install a landline and get broadband ADSL2.
    We`ll see.

    Rather, regarding the contradiction he meant there is no guarantee in the Us but then the company behind Forex.com has an office in the UK and they would guarantee up to that much, not that I have 48,000 Pounds to splash into Forex anyway.

    But its a start. I`m actually thinking to write a list of questions that I will send monday to different brokers in order to make the final choice so one question will sure be about this guarantee.

    If any of you guys can suggest any other good question to ask them, please bring them here so I can start moving and start trading :)

    Also, I just came accross this "rebate offer" :

    fxstreet.com/brokers/rebate-sharing/

    Is it any good?

    Ok, let`s forget the bonuses but still seeing even the big players such Alpari offer "28.6 % per annum on your deposit plus also a deposit bonus", got to read their trick I suppose there must be one there as well.

    Thanks a lot!
     
  9. Fadi_ibrahim

    Fadi_ibrahim Private, 1st Class

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    #9 Fadi_ibrahim, Dec 18, 2013
    Lasted edited by : Nov 24, 2015

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