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the forex -is total scam?

Discussion in 'General Forex Talk' started by asdfg, Apr 20, 2011.

  1. asdfg

    asdfg Private

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    Hello!
    I'm newbie in the forex. I listen the following opinion that forex is complete scam.
    Why?
    If you are dealing with broker with bank market maker that mean if you become successful trader, in some moment broker start stopping you because you begin grabbing money from bank market maker. If you are working via STP broker the situation looking like the similar because market created with a few (big!) banks. But they have limited resources as well, and if you start earn too much they do everything to stop you. The only fair trade is on interbank(ECN) but it need a big money.
    I dont take into account bad quality of the forex trader
    Is this true?
    If i abuse anybody, i'm sorry. I want to know only, how is real situation is looking like in forex and don't want to loose my money. May be i don't know or dont understand something very important

    Can anybody reply me?
    Thanks a lot
     
  2. f-man

    f-man 4Xangels Representative

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    Hi.

    Don't worry, you are not the only one that is concerned by this problematic.
    If you search in this forum, you will find many discussions from people that brought up this issue.
    It doesn't surprise us at all, since we all know that most of the traders start trading before they are ready to trade and loose their money. If they loose whatever they had, they will have the need to blame someone or something. If they don't trade them selfs, but they are not careful, there are many scammers looking for opportunities to steal as much as possible from new investors. Sounds terrible, right? But Forex is not a scam itself.
    If you study the Forex market and work out a profitable system, you can be successful. If you don't want to trade yourself, there are many good opportunities to be profitable investor. You just have to be very carefully and study well before each move you make.

    Welcome to Forex!
     
  3. asdfg

    asdfg Private

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    Thanks a lot!
    I agree completely with you- but it is a half of problem -qualification of trader. But this is a different issue.
    Is honesty of broker limited to its financial abilities?
    Im from Russia All our local brokers works as Dealing brokers(+Bank marketmaker) and are all scams because they are limited financially. They allow you to earn very small money and start cutting your gain if you earn more, because you start taking profit from them. That is why I interested to cooperate with brokers of different way( STP or ECN). I want to know can STP financially limits your gain from reasons I mentioned? It is VERY important for me because i can have access to big money and question of reliability of broker is extremely important for me. Thanks.
     
  4. RahmanSL

    RahmanSL Major

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    "...I can have access to big money.."

    I think you have mentioned the magic word "big money"...now you will probably get all sorts of broker's representatives (some pretending to be ordinary traders) recommending you all sorts of "reliable & honest brokers".

    Just read and check out "Brokers reviews" and their forums to get some idea of who these "reliable & honest brokers" are.

    Good luck!
     
  5. asdfg

    asdfg Private

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    I know about that!
    I read FPA reviews and got opinion about brokers. I'm sure FPA provides very highly qualified rating. I pay big respect to FPA. Thanks. But my question is still opened ...
     
  6. Pharaoh

    Pharaoh Colonel

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    Number 1, before even thinking of opening an account, sit down and spend the required 20 minutes to 1 hour (or more) carefully reading through all the terms and conditions the broker has. If you have questions, ask the live chat reps and demand that they point you to the correct part of the Terms of Service. If they say anything that doesn't 100% agree with the written terms, ask them why the publicly posted information disagrees with what they said. If the publicly posted TOS aren't quickly corrected, try a different broker.

    Be aware that some brokers won't even post these on their websites, but only send them if you apply to open an account. Skip brokers like this.

    Make 100% sure that the brokers rules are acceptable to you - otherwise, keep looking and pick a different broker.
     
  7. asdfg

    asdfg Private

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    I agree with you. But i can read everything what want to read in Terms and conditions. But I never come to trade on ANY dealing desk broker(=MM).Never. The can promise everything. But they got TECHNICAL possibility to play against you and they are financially limited. And that is a real risk and real problem.
     
  8. f-man

    f-man 4Xangels Representative

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    The best thing to do is to diversify your risk through several brokers. Don't start big, but start small and build up.

    Even a good broker can get drunk by the sudden smell of a large amount of money and start acting funny;)

    Do you have a good trading system?
     
  9. asdfg

    asdfg Private

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    Completely agree with you, sir. And system not bad. But as i told i can have access to some serious money. I know if i talking anything like that a lot of people and brokers can come and offer their services. FPA rating is a good idea but it is not enough. I have to be sure that broker is ok not because his opinion only but because i know he can't do that. I don't mentioned the FPA rating don't cover all brokers(for example vcap, mirus, amp...).
     
  10. Johnny2pips

    Johnny2pips Sergeant

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    I personally cannot see why you people gamble your money on FX. Firstly, your money is pooled into the brokers account, then you loose big time and all and they pay salaries and their 4 by 4's cars with your loss. Good for them.
    If you score in the beginning and withdraw, it is ok. But don't try withdrawing after you have withdrawn your deposit. This is a NO NO. Big time.
    You guys are changing real $ to Monopoly money and all.
    Geeze man, rather punt on your local stock exchange on real equities. You will be guaranteed on your gains and all.
    I made 112% on the stock exchange in 12 months and all.
    Yet I lost big time on FX.
     

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