Is it a fair business ?

[activefxtrader]

We are talking about a thread that discuss like NFP and scalping only. However, I just asked mini-account holders are in offshore scam or not ? Thats it. Lets think a little scenario.

* A proffessional FX trader starts with $500 mini-account any leading FX brokerage firm on the market.

Questions:

a- What will the first reactions of the brokerage firm when the mini-account holder touch $2,000 with his/her little account ? (I think, they will be alerted about the reason of losing $1,500 if they fail about their internal trading)

b- What will the possible problems for the mini-account holders when he/she reach $5,000 by their little $500 starter deposit funds. I think MM's make some obstacles on their platform give some login problems, or anything else that will focus to lessen success of this problematic trader. Am I right, or am I in terribly paranoid thinking ?

[PittsburghFX]

A:

When your mini account grows to be over 1 million, then be paranoid, though it is not needed. anything less than a million is small fish, I'm sorry but its the truth.

B:

Login problems happen all the time to everyone. There is never anything that figures you to be a problem trader. If you were a problem trader I called you on the phone. We didn't screw with your account.

Tell me this, please try to have been in my shoes.

I have 10 clients, 1 client is a $300 mini, then I have 3 institutional looking for analysis each account worth more than 250k. Why would I screw with the $500 accounts when they would constantly called and moaned and groaned. See you don't understand. Sitting in that chair at the computer screen your time is valuable. I didn't have time to have some mini account, No offense to anyone, start wasting my time with grand stories with no solution and complaints that could not be met. Why would we screw with this guys account? All it would do is cause that much more chaos and aggrevation for the company.

Do you think all the MM's actually have time, money, resources, and payroll to be spent time on the phone with complaining clients???? NO!

I understand and have talked to people that had a very bad connection or just didn't even have the technology luck let alone tading luck, but MM's do not have time to waste pin pointing out accounts. Also, you only need to even ponder this if you are trading over 1 Million in Trade size. IF your trading 10k or even 500k, its nothing, small potatoes. Trade 1,000k or 1 Mil, thats what you might think problems could occur, though if they do call your broker and worse case threaten to pull your account. If they even want your business, they will work for it.

[Hayek]

Let's forget FXCM for a while and have a rest. Here is a news.

=Forex Trading Continues Expansion To New Markets

By Katie Martin
Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Foreign exchange is showing further signs of becoming a key investment tool for specialists in other markets, as a third non-forex trading system has joined the currencies trend.

Chicago-based Trading Technologies International Inc., a major electronic trading provider in the derivatives industry, is set to provide spot forex trading through a new agreement with Hotspot FX Inc.

The move could provide a new and easy way for derivatives professionals to trade forex through systems they already use.

Over half of electronic trading volumes on Eurex, Euronext-Liffe, the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade come through Trading Technologies, according to the company's estimates.

This is the first time the firm has moved into the $1.9 trillion-a-day cash forex market. It hopes to start offering the service later this year.

"Spot FX will give our users access to a new asset class and new cross-asset trading strategies," said Trading Technologies chief executive Harris Brumfield.

It's not a first for Hotspot, though. In September it became one of three forex trading systems to link with another Chicago-based trading firm, Townsend Analytics Ltd.

Hotspot chief executive John Eley predicts that it will form more agreements along these lines over the coming months.

"Our focus is on the transaction," he said. "How people get to that transaction, whether it's through our own interface or through something like Trading Technologies - we're agnostic."

Townsend, which offers trading in equities, futures and options, fixed income and commodities through its RealTick platform, has now added forex to its offering through Hotspot, Currenex and FXCM.

Earlier this month, Lava Trading Inc, an independent equities trading network owned by Citigroup Inc (C), also launched a forex service by drawing executable prices from four banks. It eventually hopes to aggregate further executable prices through multibank trading systems, although it has yet to sign up any partners.

Cross asset-class trading is designed to cater for macro hedge funds, both by adding forex to existing systems and by offering advanced trading types.

Up to now, though, the model has been untested, so market participants will be keen to monitor take-up of these services.

There's plenty of competition, too. Aside from advanced single-bank systems, other longer-established specialized forex trading platforms, such as FXall, already draw liquidity from a much bigger group of banks - over 50 in FXall's case. While those systems do not offer cross asset-class trading, they do have a strong customer base.

[PittsburghFX]

Very cool. Where did you get that from?

[James]

Hi Pittsburgh

I trade position sizes between $2 million and $10 million at a time. How does this feature on the FXCM "radar"?

Do I get extra observation, requotes etc etc, or is this still small fry?

I have to add that I have never had any problems with FXCM in all the years I have been trading with them. In addition, they have always been polite, efficient and 10/10 in my opinion.

[PittsburghFX]

Originally posted by James
Hi Pittsburgh

I trade position sizes between $2 million and $10 million at a time. How does this feature on the FXCM "radar"?

Do I get extra observation, requotes etc etc, or is this still small fry?

I have to add that I have never had any problems with FXCM in all the years I have been trading with them. In addition, they have always been polite, efficient and 10/10 in my opinion.

All things considered you probably are on the radar, however if you do not have any execution problems and are happy with the service than they value your business and love you. You seem to be trading more than just day trading and trying to pick prices, and all market makers love swingers because they are offsetting positions and have plenty of time to make the spread. You are fine. Good Job.

[united46]

James

You may take offence at this but none is intended. You say you've never had a problem with fxcm.

Could this be because you are an IB for them? I'm assuming you get a pip kickback on each trade??? Thus, they know that you will always trade client money as you make something each time, right or wrong. Thus, they make the spread on each and every turn. At 2 to 10 mill a pop, you make them a lot of money and Pittsburgh may confirm this, as a winning trader doing decent size, they may actually hedge your trades in the Ib market anyway??? That is pretty standard practice for brokers with winning clients doing decent size.

I make this comment because I notice some other traders managing third party money have started refusing the "bung" to avoid any accusations of churning.

As I said, this is meant to cause no offence as I know you are not a scalper type trader so this is less of an issue in your case. But could it be that they keep you sweet because of this?

Regards

UNited

[PittsburghFX]

Originally posted by united46
James

You may take offence at this but none is intended. You say you've never had a problem with fxcm.

Could this be because you are an IB for them? I'm assuming you get a pip kickback on each trade??? Thus, they know that you will always trade client money as you make something each time, right or wrong. Thus, they make the spread on each and every turn. At 2 to 10 mill a pop, you make them a lot of money and Pittsburgh may confirm this, as a winning trader doing decent size, they may actually hedge your trades in the Ib market anyway??? That is pretty standard practice for brokers with winning clients doing decent size.

I make this comment because I notice some other traders managing third party money have started refusing the "bung" to avoid any accusations of churning.

As I said, this is meant to cause no offence as I know you are not a scalper type trader so this is less of an issue in your case. But could it be that they keep you sweet because of this?

Regards

UNited

There is no such thing as the "IB Market" it is all trading internally. Yes, IB's generally make a pip, but Internal Customers are the most difficult. If you are a problem trader, which most IB's are, Market Makers will put you on manual execution just like anyone else. Ib's do not hold too much weight, not like your thinking. As long as he holds his positions for longer thana few minutes than you are fine, but anyone who jumps in and jumps out will be shut down.

And most IB's lose money anyways, not saying anything about James, but generally the IB's are the people who give the market a bad name.

IB's will be nailed for churning but it is all debatable of what churning really means. If they hold a positionf for 2 min? 5 min? 20 min? What exactly is the definition of churning? Like any government policy and law, it is very vague. I knew a guy making a .5% monthly return, but was churning millions. But hey, he was making his clients money, enough to cover there commissions and he really made it on the pip rebates. So far he is doing great with no worries.

IB's are treated to the degree of business they bring in, just like in politics.