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  • #781
  • Mar 15, 2010 6:06pm Mar 15, 2010 6:06pm
Quoting wwwin
Hey Platypus, if they are audited by the NFA regularly how can they in a public forum state the STP/NDD stuff and then do something else if that is what they are doing? Do you know if these audits look into the order flow, how it is handled?, and where does it go? And are we entitled to these audits? Here the results of one was posted by the NFA
http://www.nfa.futures.org/BasicNet/...spx?seqnum=432
Can they keep from the NFA as confidential who these liquidity providers are? If they can keep confidential who the liquidity providers...
I can't answer this question because I'm not a lawyer. I'm pretty sure that this guy will have to explain some stuff for his boss. He is talking BS here and his company can be slammed with a big law suit...just my opinion.

Let me add that "technically" he is telling the truth. The problem is what he is suggesting.

Thats their "propaganda" aiming the naive.
  • #782
  • Mar 15, 2010 6:56pm Mar 15, 2010 6:56pm
Ok...let me post something here and see if you guys can start to see why things are happening the way they are happening.


Lets say that somebody have 50M in his in the bank and he decides to trade Forex with it.

He could just go ahead and start to trade with cold cash.

But waite...this guy became a millionaire because he is smart ....so as a smart guy he will not put his money on the line. You know the bank can fail, things can happen you never know.....so if there is another alternative he will use it.

And there is.......

He goes to several banks, wave 5M, and based in this amount he negotiates a "leverage" in other words he borrow money based in his capital. Maybe he will wave 10M or whatever.

Ok...a bank wins the bid and give him lets say....5:1, not enough? He does the same thing with 5 or more millions and another bank bids 3:1 leverage.

After a while lets say with 15M of his own money he got a aggregated 20:1 leverage. That make sense right?

But the beauty of this is that he is technically not even using his 15M because since the banks money is there his money is just for warranty purpose.

The guy is trading with FREE CASH.

Now lets say times are tough and the banks start to trim his leverage because the banks itself are getting hit.


Voila ! It is not rocket science


Got an idea about what brokers are going through!
  • #783
  • Mar 15, 2010 7:39pm Mar 15, 2010 7:39pm
Quoting Platypus
Ok...let me post something here and see if you guys can start to see why things are happening the way they are happening.


Lets say that somebody have 50M in his in the bank and he decides to trade Forex with it.

He could just go ahead and start to trade with cold cash.

But waite...this guy became a millionaire because he is smart ....so as a smart guy he will not put his money on the line. You know the bank can fail, things can happen you never know.....so if there is another alternative he will use it. They may be in trouble when the feds...
No..MB Trading cut their commissions in half....banks are borrowing billions from the feds at zero interest and buying treasuries with the money that pays them over 3.5%...that is not what is happening. When the feds start charging interest on reserves then they will be in trouble, but now they are making a killing at taxpayer's expense.
  • #784
  • Mar 15, 2010 7:56pm Mar 15, 2010 7:56pm
Quoting wwwin
No..MB Trading cut their commissions in half....banks are borrowing billions from the feds at zero interest and buying treasuries with the money that pays them over 3.5%...that is not what is happening. When the feds start charging interest on reserves then they will be in trouble, but now they are making a killing at taxpayer's expense.
Ok there we go again.....

You are still fighting this trend ...right wwwin?

I'm not familiar with MB, as I'm not familiar with brokers in general, but the trend of leverage is DOWN !

Brokers are changing trying to still be profitable in the new environment due to the fact that banks are trimming their line of credit and asking for more collateral.

Do I have to tell you "mark my words" ...again !!
  • #785
  • Mar 15, 2010 8:01pm Mar 15, 2010 8:01pm
Quoting Hyper
But is there any chance that one or more liquidity providers can notice that they are losing money due to a particular trading style/strategy and then complain to you (the broker acting as the middleman) and/or forbid such trading? It could especially be the case when an STP broker has only one liquidity provider, couldn't it?

This would dispel the notion that you can trade any way you like at STP brokers, including extremely aggressive scalping / high frequency trading.
I have seen this happen with a broker (other than FXCM) exactly as you describe above. The STP broker and their one liquidity provider are in bed together. So when the liquidity provider complains to the broker about your trading style the broker closes your account and you are banned from trading with them. STP means nothing except the broker is the middleman between you and the dealing desk.
  • #786
  • Mar 15, 2010 8:16pm Mar 15, 2010 8:16pm
Quoting PipStar
I have seen this happen with a broker (other than FXCM) exactly as you describe above. The STP broker and their one liquidity provider are in bed together. So when the liquidity provider complains to the broker about your trading style the broker closes your account and you are banned from trading with them. STP means nothing except the broker is the middleman between you and the dealing desk.
How can that be if you are "anonymous" as fx capital marketing says? oops. I guess you are not anonymous...there goes another myth of the benefits.
  • #787
  • Mar 16, 2010 3:31am Mar 16, 2010 3:31am
hey jason,

one question. whats the minimum amount of money i have to cash in??
at fxcm.com it says 2000$(standard account) but at the german site(i am from germany) it says 1000€??

thank you

regards

hannes
  • #788
  • Mar 16, 2010 8:58am Mar 16, 2010 8:58am
Quoting Platypus
So....since Mr Jason stated and admitted that NDD, dealing desk or whatever be......... FXCM will be your counter party, the MM or bucket shop model is confirmed.
By your reasoning, this would also mean that IB, Hotspot, MB, etc are market makers since they are the counterparty as well.

The counterparty is always the broker or institution that has the relationship. This is obvious because the bank doesn't accept "platypus" or average retail trader as the counter party. Only an institution they have a relationship with.

How your counterparty offsets the risk then determines whether the broker is acting as a dealing desk or intermediary offsetting the trade immediately.
  • #789
  • Mar 16, 2010 9:09am Mar 16, 2010 9:09am
Quoting >Apocalypto<
I feel you mate,

Jason is a master of waffling shit in tech jargon while steering away form the argument.... its annoying and frustrating.

I have noticed it's the best tool to get the argument to stop. well in numbers he can't....

it's great people see that FXCM is marketing hype....FXCM ND STP is BULLSHIT......
We’re not trading against you with NDD. It’s as simple as that. Any suppositions to the contrary are simply wrong. Due to my personal integrity, everything that I assert here is true. However, in case you don’t believe me (don’t worry, I’m well past feeling insulted by anything on a forum), it would be good to note that any claims on the website are monitored regularly by the NFA and other regulators to be truthful and clear. If it was somehow untruthful or misleading, we would have needed to take it down a long time ago and/or been fined a very large sum of money. So, unlike Apocalypto, who can incorrectly say that our system is “FXCM ND STP is bull****” on the forums with impunity, we actually have to be honest on our webpages and discussions about how our trading systems work.
  • #790
  • Mar 16, 2010 9:14am Mar 16, 2010 9:14am
Quoting PipStar
I have seen this happen with a broker (other than FXCM) exactly as you describe above. The STP broker and their one liquidity provider are in bed together. So when the liquidity provider complains to the broker about your trading style the broker closes your account and you are banned from trading with them. STP means nothing except the broker is the middleman between you and the dealing desk.
Correct.

So if STP Broker (Company A) is passing off trades to their one liquidity provider (Company B), the broker is essentially a delay between you and your orders.

If Joe Shmoe owns Company A and Company B then he has the best of both worlds AND is still allowed to market as an "STP/ECN/NDD"

One step further, if Joe Schmoe has a few other liquidity providers in addition to Company B the he can pick and choose which order flow he wants to eat up.

...Anyone want to go halves on a new FX brokerage? LOL $$$
  • #791
  • Mar 16, 2010 9:29am Mar 16, 2010 9:29am
Quoting hannes
hey jason,

one question. whats the minimum amount of money i have to cash in??
at fxcm.com it says 2000$(standard account) but at the german site(i am from germany) it says 1000€??

thank you

regards

hannes
Hi Hannes,

The minimum starting balance can vary depending on which FXCM entity or local office you open through. If you are from Germany, and open through the German site, then the minimum balance amount of 1000€ will apply to your account.

-Jason
  • #792
  • Mar 16, 2010 9:31am Mar 16, 2010 9:31am
So the big question then is whether FXCM is one of their own liquidity providers. STP can simply mean straight to their own liquidity.
  • #793
  • Mar 16, 2010 9:52am Mar 16, 2010 9:52am
Quoting Hyper
So the big question then is whether FXCM is one of their own liquidity providers. STP can simply mean straight to their own liquidity.
and of course, they have refused to answer the question by saying that they have confidentiality agreements with the liquidity providers. They will ignore or dance around the question until the cows come marching home. Makes you wonder, does it not?
  • #794
  • Mar 16, 2010 10:42am Mar 16, 2010 10:42am
Quoting Jason Rogers
By your reasoning, this would also mean that IB, Hotspot, MB, etc are market makers since they are the counterparty as well.

The counterparty is always the broker or institution that has the relationship. This is obvious because the bank doesn't accept "platypus" or average retail trader as the counter party. Only an institution they have a relationship with.

How your counterparty offsets the risk then determines whether the broker is acting as a dealing desk or intermediary offsetting the trade immediately.
Just so you know Jason boy....last week I called my bank (liquidity provider) and placed an order so don't under estimate the Platypus !!

Second before starting with a smoke curtain......what about answering my questions from yesterday?

Third.....we can talk forever here and you will keep producing "artificial" truths, because you really need your 9 to 5 job at a bucket shop. Does not bother me, in two days I'm flying to New Zealand for a nice 4 week high end vacation while you will be here at this forum !
  • #795
  • Mar 16, 2010 12:23pm Mar 16, 2010 12:23pm
Quoting Platypus
Just so you know Jason boy....last week I called my bank (liquidity provider) and placed an order so don't under estimate the Platypus !!

Second before starting with a smoke curtain......what about answering my questions from yesterday?

Third.....we can talk forever here and you will keep producing "artificial" truths, because you really need your 9 to 5 job at a bucket shop. Does not bother me, in two days I'm flying to New Zealand for a nice 4 week high end vacation while you will be here at this forum !
I'm well past being insulted by anything someone says on the forum. Of course it's nothing personal and we can have a civil conversation, though I can't say everyone is always civil

Enjoy your vacation!
  • #796
  • Mar 16, 2010 12:24pm Mar 16, 2010 12:24pm
Quoting Hyper
So the big question then is whether FXCM is one of their own liquidity providers. STP can simply mean straight to their own liquidity.
Hi Hyper,

FXCM is not one of the 10 banks providing liquidity on NDD execution.

-Jason
  • #797
  • Mar 16, 2010 1:15pm Mar 16, 2010 1:15pm
Quoting Jason Rogers
We’re not trading against you with NDD. It’s as simple as that. Any suppositions to the contrary are simply wrong. Due to my personal integrity, everything that I assert here is true. However, in case you don’t believe me (don’t worry, I’m well past feeling insulted by anything on a forum), it would be good to note that any claims on the website are monitored regularly by the NFA and other regulators to be truthful and clear. If it was somehow untruthful or misleading, we would have needed to take it down a long time ago and/or been fined a very...
most retail traders don't understand that, keep up the work jason
  • #798
  • Mar 16, 2010 1:42pm Mar 16, 2010 1:42pm
I have just opened (yesterday actually) 2 demo accounts with FXCM using their MT4 platform - connection was really bad and now I have no connection at all. And NO, it is not my internet connection, I am running demo and live MIG bank MT4 and Oanda demo and they get real-time feed, no problems.
Has anybody else experienced these problems?
Because as of right now, I am REALLY not thrilled with FXCM.
  • #799
  • Mar 16, 2010 2:05pm Mar 16, 2010 2:05pm
Vark,

The FXCM connection has actually improved over the last week, however we still maintain our service advisory for them. hoping it continues to improve we can lift it.

have not reviewed past 24 hours. maybe it has become worse again.

our alert: http://helpdesk.commercialnetworkser...news&newsid=18
BarrySDCA Commercial Network Services
  • #800
  • Mar 16, 2010 3:57pm Mar 16, 2010 3:57pm
Quoting Jason Rogers
I'm well past being insulted by anything someone says on the forum. Of course it's nothing personal and we can have a civil conversation, though I can't say everyone is always civil

Enjoy your vacation!

Come on Jason boy....be fair!! You are refusing to answer my questions and now you are trying to play the "personal" card.

And you know what? Thats fine for me if your company or any other out there fits the "bucket shop" profile. But every time you come here and try to put lipstick on the ugly pig somebody more informed will confront you. So dont complaint about being flamed.
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