Disliked.................. As most of retails are loosers, it's a big business to take the other side of the trade . Lot of money to make....Ignored
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Disliked.................. As most of retails are loosers, it's a big business to take the other side of the trade . Lot of money to make....Ignored
DislikedUsually in ECN you risk slippage and wider spreads (depends on the kind of news) during news. I personnally never trade during news. I take an order before, never during the news...Ignored
Dislikedis the best way to combat this by using a mental stop versus an actual placed stopIgnored
DislikedUsually in ECN you risk slippage and wider spreads (depends on the kind of news) during news. I personnally never trade during news. I take an order before, never during the news...Ignored
DislikedYes the main reason of the troubles is many retails can't invest enough money and take standard lot size. Thats why many forex brokers are dealers and offer fake forex trading. Another reason is commissions are based on volume... Retails don't make millions and millions volumes, so brokers' income won't be high and they will charge high commissions. But lot of retails won't be happy with such commissions... and even with trading conditions : slippage, no guaranteed stop loss... As most of retails are loosers, it's a big business to take the other...Ignored
Disliked{quote} 90% of retail traders loose 90% of their deposit within 90 daysIgnored
Disliked{quote} And in SNB crisis situation, they shouldn't have suffered much if at all if they had been operating in pure ECN order-matching model.Ignored
DislikedOther explanations : look at customers : Baxter FX, LCG FX or FIXI are institutionnal/professionnal brokers. Their deposits are higher and traders professionnals. It's very different with FXCM and other retails brokers. Above all FXCM through dailyfx said to customers to be long on EUR/CHF : 98% customers were long... Institutions and professionnals traders have more money than retails and so have less problems to pay their losses. I know a guy at FXCM who lost 800k. How do you think he can pay ?Ignored
Disliked{quote} What ? It is an obligation for them to partial hedge clients exposure on markets. Thats one of the regulations' rules.Ignored
Disliked{quote} What do you think they just hedge the risk of the entire book, because if they try to hedge each individual trade and be in an out of the market is an extra cost for them as they are giving away the spread, pay extra commissions, so in this regard they only hedge to bring the risk limit in line with the permitted risk levels set by the company and regulatory body. What's the standard practice?Ignored
Disliked{quote} Yeah but from the broker's point of view, that's not his problem. That's LP's problem if the broker had operated in a pure order-matching agent model. If the broker had specifically stated the counterparty of the trade is the LP to the retail trader and vice versa then if anything happens the LP would go after the trader and etc. But then again, there is the issue of anonymity, we are not supposed to know the identity of the counterparty of our transaction, nor of us. That's the beauty of the OTC market; it's the appeal of the hush hushness....Ignored
Disliked{quote} What do you think they just hedge the risk of the entire book, because if they try to hedge each individual trade and be in an out of the market is an extra cost for them as they are giving away the spread, pay extra commissions, so in this regard they only hedge to bring the risk limit in line with the permitted risk levels set by the company and regulatory body. What's the standard practice?Ignored
Disliked{quote} What ? It is an obligation for them to partial hedge clients exposure on markets. Thats one of the regulations' rules.Ignored