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  • #4,161
  • Jan 28, 2015 7:00pm Jan 28, 2015 7:00pm
Quoting Profit Daily
{quote} Yes, I'm sure the accounts are segregated in Europe. However, if you are not in the US, you have many, many better options.
Im not in the us, so how would you recommend.

i need a new broker, and I am kind of stuck, I don't know enough about brokers to know which is best
  • #4,162
  • Jan 29, 2015 2:39am Jan 29, 2015 2:39am
Multiple disconnect after disconnect this morning. Annoying.
  • #4,163
  • Jan 29, 2015 3:16am Jan 29, 2015 3:16am
Quick question: I want to get a second broker and Oanda might be a good choice. I was wondering is there MT4 platfrom Daily candle close 5pm New York?

Thanks
  • #4,164
  • Jan 29, 2015 6:55am Jan 29, 2015 6:55am
Quoting mitch77
Quick question: I want to get a second broker and Oanda might be a good choice. I was wondering is there MT4 platfrom Daily candle close 5pm New York? Thanks
http://fxtrade.oanda.com/trade-forex/metatrader/

Which MT4 server should I select?
As a live fxTrade account holder, you have the option of signing into servers aligned to either midnight GMT+2 or midnight GMT-5. The GMT+2 Live server is aligned to the New York Close and supports 5 daily candles per week. The GMT-5 Live server is aligned to midnight Eastern time, which results in 6 daily candles per week.

fxTrade Practice clients have only one option available and should select the GMT-5 Practice server.

Please be aware that if you are not a Japanese client you should not sign into the Japan Live or Japan Practice servers. They do not support clients from other regions.
  • #4,165
  • Jan 29, 2015 7:05am Jan 29, 2015 7:05am
Thanks for that, I should have looked properly myself

In answer to your question GMT +2 makes the most sense to me.
-5 candles per week, no annoying Sunday candle
-most brokers seem to use GMT +2 ie easier to compare charts from 2 or more brokers.
- close of NY trading day instead of some random time.
  • #4,166
  • Edited 9:06am Jan 29, 2015 8:54am | Edited 9:06am
Detailed explanation of why Oanda and Forex.com and a host of others wiped out negative balances:

Due to the fact that 99% of retail traders have minimal cash assets and are only able to trade by using credit from their broker (leverage), coupled with the ease with which people in the US and EU countries can ignore debts (or just declare bankruptcy), the possibility of recovering those losses are negligible. Even if it were possible, the negative publicity that would result from "xxxx broker took my house away" accusations pushed brokers to just forgive the balances. Legally and morally, however, those clients were responsible for repaying those negative balances.

In summary, the only brokers who would benefit from your proposal are the ones who trade against their clients - they have no liquidity providers to deal with (so were totally unaffected by the SNB move) and would simply be cutting short profits and forgiving non-existent debts.

Consider the SNB move in terms of a a broker with two clients - each with a $1,000 account, one long 1.0 lot and the other short 1.0 lot - both orders with 100 pip TP and 100 pip SL:

1) with a real ECN/STP broker
- Short client account balance: $2,000 (100 pips profit - instant exit due to glut of buyers)
- Long client account balance: $-12,000 (-1200 pips loss due to lack of sellers)
- Broker position with liquidity provider: $-11,000
- Chance of long client repaying the debt: 0%
- Loss suffered by broker: $-11,000

2) with a non-ECN broker
- Short client account balance: $2,000 (100 pips profit - instant exit due to no counter-party)
- Long client account balance: $0 ... -12,000 (up to 1200 pips loss at broker's discretion)
- Broker position with liquidity provider: N/A - no liquidity provider involved
- Chance of long client repaying any debt: 0%
- Loss suffered by broker: NO LOSS - broker gained $1,000 deposit lost by the long client and used that to offset the $1,000 gained by the short client

... and any negative balance held by the long client can be written off because the broker has no 3rd-party obligation for that amount.

I hope the above helps people to understand the mechanics of Forex trading and how brokers are involved in the equation.
http://forums.babypips.com/images/misc/progress.gif
  • #4,167
  • Jan 29, 2015 9:19am Jan 29, 2015 9:19am
So what you are also saying is that all the brokers that wiped negative balances and that also state they are a STP or ECN brokers are lying? Quite a few of them wiped negative balances: example FXPro, ATC UK, Dukascopy, Tickmill and Think Forex. Even Darwinex which has exact same low spreads as Lmax (uses Lmax for Liquidity or is an IB) foregave negative balances.

http://forexmagnates.com/covered-bro...ng-chf-crisis/

This is the biggest conspiracy in the financial world.
  • #4,168
  • Jan 29, 2015 9:26am Jan 29, 2015 9:26am
Quoting mitch77
So what you are also saying is that all the brokers that wiped negative balances and that also state they are a STP or ECN brokers are lying? Quite a few of them wiped negative balances: example FXPro, ATC UK, Dukascopy, Tickmill and Think Forex. Even Darwinex which has exact same low spreads as Lmax (uses Lmax for Liquidity or is an IB) foregave negative balances. http://forexmagnates.com/covered-bro...ng-chf-crisis/ This is the biggest conspiracy in the financial world.
Well, I know Dukascopy had been proactive in risk management and lowered leverage to 1;10 on eur/chf back in October. The others probably have enough capital buffer to wipe it or their terms and conditions state they cannot collect it.
  • #4,169
  • Jan 29, 2015 9:51am Jan 29, 2015 9:51am
Quoting Profit Daily
2) with a non-ECN broker - Short client account balance: $2,000 (100 pips profit - instant exit due to no counter-party) - Long client account balance: $0 ... -12,000 (up to 1200 pips loss at broker's discretion) - Broker position with liquidity provider: N/A - no liquidity provider involved - Chance of long client repaying any debt: 0% - Loss suffered by broker: NO LOSS - broker gained $1,000 deposit lost by the long client and used that to offset the $1,000 gained by the short client ... and any negative balance held by the long client can be...
You are totally wrong. You know nothing about brokers.No wonder that you want to trade just with unregulated brokers, you think. they are the best brokers from Universe,
After your judgment, a market maker is impossible to lose money.
It's a simple question. Why Oanda, lose 10 M on SNB move???
  • #4,170
  • Jan 29, 2015 10:06am Jan 29, 2015 10:06am
Quoting Tim_isoara
{quote} You are totally wrong. You know nothing about brokers.No wonder that you want to trade just with unregulated brokers, you think. they are the best brokers from Universe, After your judgment, a market maker is impossible to lose money. It's a simple question. Why Oanda, lose 10 M on SNB move???
This is an explanation from an actual broker. I just copied and put here. So, what you are saying is this broker doesn't understand how brokers work.
  • #4,171
  • Jan 29, 2015 10:15am Jan 29, 2015 10:15am
Quoting Tim_isoara
{quote} You are totally wrong. You know nothing about brokers.No wonder that you want to trade just with unregulated brokers, you think. they are the best brokers from Universe, After your judgment, a market maker is impossible to lose money. It's a simple question. Why Oanda, lose 10 M on SNB move???

It's not that I want to trade with unregulated brokers. The NFA has made that decision for me. It's either trade with ridiculously low leverage compared to the rest of the world, execute trades based on FIFO, of course, never hedge (which I don't anyway) or trade with an unregulated broker. This is because the NFA has taken the liberty to not only place these restrictions on US brokers, but some how they feel they have the power to regulate ALL THE REGULATED BROKERS on the entire planet by not allowing them to accept US clients. Once again, most of these unregulated brokers are simply unregulated for US clients benefit. You see, once they are regulated, regardless of by whom, the NFA feels they regulate them also.
  • #4,172
  • Jan 29, 2015 10:16am Jan 29, 2015 10:16am
Quoting Tim_isoara
{quote} You are totally wrong. You know nothing about brokers.No wonder that you want to trade just with unregulated brokers, you think. they are the best brokers from Universe, After your judgment, a market maker is impossible to lose money. It's a simple question. Why Oanda, lose 10 M on SNB move???
Lol, yeah, that was an extremely simplistic view. Let's just say that the broker doesn't hedge anything externally ('bucketshop'):

Client A:

Long 1M EUR/USD @ 1.2001

Client B:

Enters short 1M EUR/USD @ 1.2000

As long as these two positions are open, the 'b-book' is completely flat (Broker profit = $100). This is called 'internalization', even 'bucketshops' need to deal with this reality. Since even a bucketshop really doesn't dictate what its clients will do, consider what happens when a price 'gap' happens. Let's say for some reason the price just jumped to 1.1700, a 300 point gap, and both exited at that price.

Client A:

Loss = $30,100

Client B:

Profit = $30,000

You'd think the B-book broker here is flat yet again. However, Client A probably only had $24K in his account. So now he has a negative balance of $6.1K. Client B is owed 30K. The bucketshop broker in this case will have to eat the loss - transfer 24K from Client A to Client B, and somehow come up with the extra $6K he owes.

It's all about client position imbalance BEFORE CHF gapped that would dictate whether the broker would suffer or not, even if they were a B-Book broker.
  • #4,173
  • Jan 29, 2015 10:33am Jan 29, 2015 10:33am
Quoting Pirotechnic
{quote} Lol, yeah, that was an extremely simplistic view. Let's just say that the broker doesn't hedge anything externally ('bucketshop'): Client A: Long 1M EUR/USD @ 1.2001 Client B: Enters short 1M EUR/USD @ 1.2000 As long as these two positions are open, the 'b-book' is completely flat (Broker profit = $100). This is called 'internalization', even 'bucketshops' need to deal with this reality. Since even a bucketshop really doesn't dictate what its clients will do, consider what happens when a price 'gap' happens. Let's say for some reason the...
Since 98% of retailers were long EURCHF, I'm sure the b-book brokers did just fine.
  • #4,174
  • Jan 29, 2015 10:50am Jan 29, 2015 10:50am
Quoting Profit Daily
{quote} This is an explanation from an actual broker. I just copied and put here. So, what you are saying is this broker doesn't understand how brokers work.
And any negative balance held by the long client can be written off because the broker has no 3rd-party obligation for that amount.

And loss disappears . Judge yourself if he is right
It's a simple question. Why Oanda, lose 10 M on SNB move???
  • #4,175
  • Jan 29, 2015 11:01am Jan 29, 2015 11:01am
I read on forexmagnates that oanda is a market maker

you can see that in strong volatility they widen the spread and it stay wide very long like there is a program that hold this.

I do have an account with them and I am not so satisfied by the spread they practice in EURUSD nowdays.
used to be 1.2 - 1.0 now more like 1.8-1.6

as for the loss even if you are a market maker you hedge your risk with LP
  • #4,176
  • Jan 29, 2015 12:22pm Jan 29, 2015 12:22pm
Quoting Profit Daily
{quote} Since 98% of retailers were long EURCHF, I'm sure the b-book brokers did just fine.
Again, that would be a ridiculous risk that they'd be taking. If their positions were severely imbalanced, and considering that everyone and their mother was banking on SNB reaffirming their cap, all brokers that were b-booking that size of a position would expect to lose badly if the SNB defended their cap.

The more plausible explanation is that they started hedging most of it out, hence the losses due to negative balances. This is why the primary MMs like DB and Citi reported losses, and why a plethora of retail brokers, ECNs and MMs, reported losses due to negative balances.
  • #4,177
  • Jan 29, 2015 12:47pm Jan 29, 2015 12:47pm
Quoting Pirotechnic
{quote} Again, that would be a ridiculous risk that they'd be taking. If their positions were severely imbalanced, and considering that everyone and their mother was banking on SNB reaffirming their cap, all brokers that were b-booking that size of a position would expect to lose badly if the SNB defended their cap. The more plausible explanation is that they started hedging most of it out, hence the losses due to negative balances. This is why the primary MMs like DB and Citi reported losses, and why a plethora of retail brokers, ECNs and MMs,...
  • #4,178
  • Jan 29, 2015 2:09pm Jan 29, 2015 2:09pm
Quoting Tim_isoara
LMAX is ECN or MM?
neither, it is a MTF
I'm not insane; my mother had me tested.
  • #4,179
  • Edited 3:48pm Jan 29, 2015 3:22pm | Edited 3:48pm
Quoting RoBiK
{quote} neither, it is a MTF
LMAX, trade against you? What is your opinion?

Attached Image



Is your LP.But is not a market maker is a MTF.
  • #4,180
  • Jan 29, 2015 3:29pm Jan 29, 2015 3:29pm
Quoting Tim_isoara
{quote} And any negative balance held by the long client can be written off because the broker has no 3rd-party obligation for that amount. And loss disappears .
Bad statement. Brokers have obligation to purchase dud currencies or commodities or stock.
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