Small vs. large

kzhen

Banned spammer for GallantFX
Messages
2
I was wondering what are the pros/cons of opening with a small versus large fx broker. Besides the usual of being just a number to a large broker and for the small broker to be more concentrated on their client.
 
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Pharaoh

Colonel
Messages
19,727
I've vote for well regulated over unregulated before worrying about how big the broker is. Also, find out what liquidity provider(s) the broker uses. Those should make a difference in how well your orders get filled.
 

kzhen

Banned spammer for GallantFX
Messages
2
What is the importance of who the liquidity provider is? What if most brokers have about the same? Then how would I rule out which one to choose from? Thanks.
 

mpfinnigan

Banned spammer for GallantFX
Messages
1
How to Choose a Broker

I was also wondering about this. What are some of the more desirable traits one should look for when choosing a forex firm? Do smaller firms typically have different trading strategies than larger firms or is size not a factor?
 

Pharaoh

Colonel
Messages
19,727
Different liquidity providers have access to different resources. There's not a centralized exchange like for stocks. If you need high liquidity (for news trading or scalping), you would be better off using a broker with multiple liquidity providers.
 

AsstModerator

FPA Forums and Reviews Admin
Messages
5,552
Due to some spam in the reviews for GallantFx's new offshore branch at gcmfx.com, I've verified that 3 forums accounts were created from inside Gallant's offices.

mpfinnigan and kzhen were 2 of those accounts. There was a fake review for Gallant left from an Ahzhen on June 16.

The third account's username was forextrader17. Another fake review was left that was credited to a Forextrader17 on June 17th.

I am deeply disappointed in Gallant/GCMFX for these activities.
 

RahmanSL

Major
Messages
2,536
AsstModerator, Brokers leaving fake reviews seems to be quite common in all forums.
Perhaps the FPA should have a section listing Brokers by name who have a habit of posting fake reviews, and also the number of times they "praised themselves".
This way, at least FPA members (especially Newbies) will have further info on which Brokers to avoid and, hopefully, we might see case reduction in post that so-and-so Broker has scammed them of their money.

Pharaoh, are there Brokers who have multiple Liquidity Providers?? Hmmmm, I didn't know that! can you give me a few examples??
Thanks!
 

Chaz McHan

Corporal
Messages
74
...
Pharaoh, are there Brokers who have multiple Liquidity Providers?? Hmmmm, I didn't know that! can you give me a few examples??
Thanks!
Just jumping in here... one of the brokers I've used is dbFX which uses only Deutsche Bank's own liquidity. Though they claim to have the most liquidity of anyone, I found this to not be helpful. They might have the largest piece, but they still offer just that one piece. Dukascopy and ACM, both of whom I've used extensively, composite multiple liquidity sources. ACM claims to offer around 70% of all worldwide liquidity in the forex spot market through their multiple providers. From personal experience, fulfillment is much better with them than it was with dbFX. I also used FXPro, a market-maker. They also used multiple liquidity providers and had excellent order fulfillment. In fact, much better than a true ECN I was using at the same time. I'd still be using FXPro for my personal account if they didn't cut off all US-resident clients last year. I think MOST brokers -- market makers like FXPro and true ECNs like ACM alike -- use multiple liquidity providers.
 

Chaz McHan

Corporal
Messages
74
Due to some spam in the reviews for GallantFx's new offshore branch at gcmfx.com, I've verified that 3 forums accounts were created from inside Gallant's offices.

mpfinnigan and kzhen were 2 of those accounts. There was a fake review for Gallant left from an Ahzhen on June 16.

The third account's username was forextrader17. Another fake review was left that was credited to a Forextrader17 on June 17th.

I am deeply disappointed in Gallant/GCMFX for these activities.
Do you think these nicks were leading up to providing an endorsement, or had they already done so elsewhere? What they said in this thread was pretty subtle.

I agree that it is unethical to sock-puppet in order to deceive people. It's done all the time, however, to teach people. It's the socratic method, afterall, right? That is, it's asking questions you already know the answer to in order to engage the audience and get them to think along the lines you want them to be thinking. How many "FAQ" lists/pages are ACTUALLY composed of questions that had been frequently asked? Aren't FAQ pages usually just ways of presenting information in a back-and-forth dialog form? (Obviously real questions that are frequently asked are usually answered in this section as well). Anyway, do you get my point?

What would be FPA's official position, then, on drawing the line between deceptive "scamming" via sock-puppeteering and didactic role-playing with the honorable intentions of teaching or even promoting one's legitimate business? I would suggest making new participants correctly identify themselves when they sign up (yes, real first and last name, e-mail (maybe excluding hotmail and the like), etc. I'd also suggest a rule that requires hypothetical/didactic dialogues and Q's and A's be identified for what they are.

I have always been inclined to be a private/anonymous person, especially on the internet. I understand why even good people want to hide behind anonymous nicks. Is that a helpful thing for these boards, though? Aren't we trying to expose deception and promote openness and transparency?

For the record, Chaz McHan is not just a username for me, it's the name I got from my parents when I was born.
 

Pharaoh

Colonel
Messages
19,727
A number of brokers brag about having multiple liquidity providers. In cases like this, I only consider believing the ones who will name their liquidity providers. If they say the info is secret, those "liquidity providers" are probably just your fellow traders inside a bucket shop.

Check some of the larger regulated US and UK brokers and you'll find some that do name real liquidity providers.


As for the sock puppets, I thought this conversation was a little strange when it started, but then they never followed up. They'd already laid the groundwork for someone to start talking about Gallant.
 
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