User talk:Aimreach

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Today Forex(or FX) market becomes more and more popular and attractive. The attraction to the Forex is the small amount it takes to get involved but there is a much great per centage of losers who trade the Forex than in the regular currency markets (Futures markets).

There is not a central market and the banks rip you off, plus the commission is too expensive. The currency futures however are a real market and there cannot be as much “cheating” that goes on every minute in the Forex.


Contents

[edit] Commisions

Brokers deceive you about there being
no commissions. $30 minimum/round turn(called spread)
is in reality a commission that eats up your
capital at an astonishing rate. Even winning
traders lose money and end up with negative
results because of this outlandish overhead.
Trading futures, you never have to pay a broker
more than $10/round turn, and usually quite a
bit less than that.


[edit] Guaranteed fills

True but… The only way a
broker can guarantee fills is for the broker to
become the buyer or seller of last resort. That
means the broker is running a bucket shop. All
forex brokers are the buyer and seller of last
resort.


[edit] Volume

Brokers do not tell the truth about volume.
They show the volume for all forex trading,
which doesn’t even come close to the volume
they truly have at their own brokerage, which
is where you are trading. Volume in currency
futures is considerably higher than the volume
traded at any single forex broker, often greater
by a factor of ten.


[edit] Leaning

Brokers say they are charging you a
3 pip spread to trade the popular currency
pairs. But in reality a broker may be making
as much or more than 10 pips on your trades.
He does this by skewing prices. Since you are
not trading at an exchange, the broker can
feed you any price he wants to feed you. He
can buy at the bank for perhaps 7 pips less
than he sells to you. He then charges you 3
pips for the privilege of being ripped off for
a total of 10 pips.

[edit] Unregulated

Forex may sound like an exchange
but it isn’t. It exists entirely in cyberspace
with every broker and every bank having
different prices for any particular currency.
There is no regulation,even for brokers who register
with the CFTC and the NFA. Forex brokers do
not have to mark to market each day as do
futures brokers. If your forex broker files
for bankruptcy or absconds with your money you
have zero recourse.

[edit] No guarantee

If a forex broker does go out
of business, you could lose all your money.
There are no guarantees and no one standing
behind it. Futures brokers are required to
mark to market every day. They have to put up
cash to cover eery open trade on their books.
Future brokers have gone broke, but no future
customer has ever lost one cent of the money
in his trading account because of a failed
broker. Nor have they had to wait for their
money. It is immediately available.


[edit] The same action

You can get exactly the same action in the
euro fx futures as you get in the ”Euro” forex.
Commissions are as low as one tenth per round
turn depending on volume, through a regulated
broker, trading electronically at an exchange
where you know the true price of the currency.

[edit] What is the true price?

A forex broker can only give you the price
of a currency as quoted to him
by the bank through which he trades. Banks
have diffeing prices for a currency. You never
know what the real price is because there is no
central exchange through which all prices flow.
Besides not knowing the true price from the
bank, you can also be deceived by “leaning” or
“skewing” of the real price at the bank. Forex
brokers comonly lean the prices.

[edit] Forex brokers are not truthful

They lure people in with hype and false advertising:
“No commissions!” “Guaranteed fills.” “24 hour
trading:” Who in their right mind is going to
trade in the middle of the night unless they
have a special need. While it is true that
total forex volume is greater than in the
futures, futures volume at the exchange is
greater than the volume at your broker for the
most popularly traded currencies. The only
place where the liquidity differential matters
is in currencies like the Mexican peso, the
Brazilian real, and somebody’s drachma. Those
thinly traded currencies may be more liquid in
forex. But if you trade anything but the few
most liquid and popular currencies, you are
going to be paying at least 5 pips, and often
more. Unless you have a particular comercial
need to deal in Polish ziotys, Indian rupees,
or some other thinly traded currency, you don’t
need forex.


[edit] Stop running

You are told by forex brokers that there is
little or no stop running. This is one of their
biggest and boldest fabrications. The truth is
there is far more stop running in forex than in
futures, and possibly as much stop running as
in the stock market. Simple observation of forex
trading will reveal the vast amount of stop
running that takes place there. Who is it that
runs the stop? It’s your friendly forex broker,
that’s who. The broker has a vested interest in
seeing to it that your orders are filled. Stop
running is nothing more than order filling.
The broker sees to it that everybody’s orders
get filled.


[edit] If your are winning regularly

Probably you have heard that
if your are winning regularly in forex, you may be barred
from trading. Is this true? Yes it is. The fact that
is true is just another proof that when you
trade forex you are trading at a bucket shop.
This is true with many forex brokers.
Since they are the ones guaranteeing you a fill
they in effect the buyer and seller of last resort. The truth is that most forex brokers have
precious little liquidity at their firms. In
order to give you the impression that there is
liquidity, it is the broker who gives you your
fill. It is the broker who does the stop running
that supposedly doesn’t exist in forex.
But if you are regularly beating the socks off
the broker, he will ban you from trading at his
firm.

[edit] See also

[edit] External links

Today Forex(or FX) market becomes more and more popular and attractive. The attraction to the Forex is the small amount it takes to get involved but there is a much great per centage of losers who trade the Forex than in the regular currency markets (Futures markets).

There is not a central market and the banks rip you off, plus the commission is too expensive. The currency futures however are a real market and there cannot be as much “cheating” that goes on every minute in the Forex.


[edit] Commisions

Brokers deceive you about there being
no commissions. $30 minimum/round turn(called spread)
is in reality a commission that eats up your
capital at an astonishing rate. Even winning
traders lose money and end up with negative
results because of this outlandish overhead.
Trading futures, you never have to pay a broker
more than $10/round turn, and usually quite a
bit less than that.


[edit] Guaranteed fills

True but… The only way a
broker can guarantee fills is for the broker to
become the buyer or seller of last resort. That
means the broker is running a bucket shop. All
forex brokers are the buyer and seller of last
resort.


[edit] Volume

Brokers do not tell the truth about volume.
They show the volume for all forex trading,
which doesn’t even come close to the volume
they truly have at their own brokerage, which
is where you are trading. Volume in currency
futures is considerably higher than the volume
traded at any single forex broker, often greater
by a factor of ten.


[edit] Leaning

Brokers say they are charging you a
3 pip spread to trade the popular currency
pairs. But in reality a broker may be making
as much or more than 10 pips on your trades.
He does this by skewing prices. Since you are
not trading at an exchange, the broker can
feed you any price he wants to feed you. He
can buy at the bank for perhaps 7 pips less
than he sells to you. He then charges you 3
pips for the privilege of being ripped off for
a total of 10 pips.

[edit] Unregulated

Forex may sound like an exchange
but it isn’t. It exists entirely in cyberspace
with every broker and every bank having
different prices for any particular currency.
There is no regulation,even for brokers who register
with the CFTC and the NFA. Forex brokers do
not have to mark to market each day as do
futures brokers. If your forex broker files
for bankruptcy or absconds with your money you
have zero recourse.

[edit] No guarantee

If a forex broker does go out
of business, you could lose all your money.
There are no guarantees and no one standing
behind it. Futures brokers are required to
mark to market every day. They have to put up
cash to cover eery open trade on their books.
Future brokers have gone broke, but no future
customer has ever lost one cent of the money
in his trading account because of a failed
broker. Nor have they had to wait for their
money. It is immediately available.


[edit] The same action

You can get exactly the same action in the
euro fx futures as you get in the ”Euro” forex.
Commissions are as low as one tenth per round
turn depending on volume, through a regulated
broker, trading electronically at an exchange
where you know the true price of the currency.

[edit] What is the true price?

A forex broker can only give you the price
of a currency as quoted to him
by the bank through which he trades. Banks
have diffeing prices for a currency. You never
know what the real price is because there is no
central exchange through which all prices flow.
Besides not knowing the true price from the
bank, you can also be deceived by “leaning” or
“skewing” of the real price at the bank. Forex
brokers comonly lean the prices.

[edit] Forex brokers are not truthful

They lure people in with hype and false advertising:
“No commissions!” “Guaranteed fills.” “24 hour
trading:” Who in their right mind is going to
trade in the middle of the night unless they
have a special need. While it is true that
total forex volume is greater than in the
futures, futures volume at the exchange is
greater than the volume at your broker for the
most popularly traded currencies. The only
place where the liquidity differential matters
is in currencies like the Mexican peso, the
Brazilian real, and somebody’s drachma. Those
thinly traded currencies may be more liquid in
forex. But if you trade anything but the few
most liquid and popular currencies, you are
going to be paying at least 5 pips, and often
more. Unless you have a particular comercial
need to deal in Polish ziotys, Indian rupees,
or some other thinly traded currency, you don’t
need forex.


[edit] Stop running

You are told by forex brokers that there is
little or no stop running. This is one of their
biggest and boldest fabrications. The truth is
there is far more stop running in forex than in
futures, and possibly as much stop running as
in the stock market. Simple observation of forex
trading will reveal the vast amount of stop
running that takes place there. Who is it that
runs the stop? It’s your friendly forex broker,
that’s who. The broker has a vested interest in
seeing to it that your orders are filled. Stop
running is nothing more than order filling.
The broker sees to it that everybody’s orders
get filled.


[edit] If your are winning regularly

Probably you have heard that
if your are winning regularly in forex, you may be barred
from trading. Is this true? Yes it is. The fact that
is true is just another proof that when you
trade forex you are trading at a bucket shop.
This is true with many forex brokers.
Since they are the ones guaranteeing you a fill
they in effect the buyer and seller of last resort. The truth is that most forex brokers have
precious little liquidity at their firms. In
order to give you the impression that there is
liquidity, it is the broker who gives you your
fill. It is the broker who does the stop running
that supposedly doesn’t exist in forex.
But if you are regularly beating the socks off
the broker, he will ban you from trading at his
firm.

[edit] See also

[edit] External links