Long Term Profits in FX??

[pippimp]

Fellow Traders,

I have been trading forex for about 3 years now.. Have made and lost money. Had pain and elation of trading, but my question to all of you is that what happens if we cant enjoy our profits long term?

Ever since starting in forex traders, i have had the pleasure of knowing many traders some with great skills and some with not so great skills. The question comes back to when the good traders win consistently, what are the brokers doing to hinder this? We are seeing more Stop Loss hunting and greater spreads and less fills when brokers suspect certain individuals are better than the norm and since save for NFA and few other regulatory bodies FX Retail Brokering is still largely UNregulated.

For example a friend of mine who is an excellent trader who had an account with a certain broker for a few years and was doing very well.. Know what happened? He was barred from trading on the charts and forced to only place manual trades by phone (guess what happens then., there is no real paper trail documenting the phone orders, they can just turn off call recorder whenever they wish)...

My question is what are your thoughts about our long term survivability in which not only the market itself may go against a trader but the broker themselves....

This will be an ever increasing hot topic with more person getting into FX trading to try to diversify from traditional investment vehicles.

Just looking for fresh ideas that we as traders may come together and rally against any unfair trading practices..

Floor is now open......

[shiningstar]

What?

Are you saying brokers will never allow us to be profitable?

Isn't that ... illegal?

[Tovinces]

Originally Posted by pippimp

Fellow Traders,

I have been trading forex for about 3 years now.. Have made and lost money. Had pain and elation of trading, but my question to all of you is that what happens if we cant enjoy our profits long term?

Ever since starting in forex traders, i have had the pleasure of knowing many traders some with great skills and some with not so great skills. The question comes back to when the good traders win consistently, what are the brokers doing to hinder this? We are seeing more Stop Loss hunting and greater spreads and less fills when brokers suspect certain individuals are better than the norm and since save for NFA and few other regulatory bodies FX Retail Brokering is still largely UNregulated.

For example a friend of mine who is an excellent trader who had an account with a certain broker for a few years and was doing very well.. Know what happened? He was barred from trading on the charts and forced to only place manual trades by phone (guess what happens then., there is no real paper trail documenting the phone orders, they can just turn off call recorder whenever they wish)...

My question is what are your thoughts about our long term survivability in which not only the market itself may go against a trader but the broker themselves....

This will be an ever increasing hot topic with more person getting into FX trading to try to diversify from traditional investment vehicles.

Just looking for fresh ideas that we as traders may come together and rally against any unfair trading practices..

Floor is now open......

Thanks a lot for opening this thread, guy, this question is VERY actual.
Talking about my exprerience, I've been trading forex for almost a year and during this time I managed to get known with some bad hints, which brokers can do to destroy your account, especially when the deposit is small and the leverage is big.

I do think that the majority of traders are trading with relatively small brokers which in fact can't really guarantee anything.
That's why false explosions of price actions, uncertain "new prices" of the instruments is normal for different brokers.
e.g., my previous broker FX4U once has risen the value of my position in 50 times (from 0.02 lot to 1 lot), and I lost some hundreds of dollars. But, when I contacted the support and told them that if they don't return my money I would write about it on Russian forex forums. In a few hours my money were withdrawn from broker's account.

Another time I got acquainted with a broker who had a nasty habit to turn off the price update for several minutes...

BUT I believe that with the help of some tricks we, traders, can also make money and these fraud from brokers can even help us. The only thing we should do - be nasty, pert and resourceful.

[magister]

you can always change brokers. Also I have started to trade futures, regulated exchange

[Henry]

Will retail forex trading ever be regulated, given the international nature of the business? Even if it is, how will a trader in Britain enforce the legislation if the broker is regulated by US law? It will be tedious and expensive.

Another issue is the income that brokers receive from the spread. They should get thousands of pips per month and the higher the clients' balances get, the higher the value of the pips and the higher their income. Why should they resort to dirty tricks? It should'nt be neccesary. Their success should go hand in hand with their clients' success and should not depend on their clients' failure.

They would resort to tricks like this when they don't put the orders into the market. If they do not do that and bet against you instead, that will be when they start hunting stops. Imagine what it will do to a broker's bank balance if a few trades go say $30 000 into profit and the trades are not in the market. If I was in their position, I would do the same, LOL.

What is the cost of the system that places the orders directly into the market? Is that cost not prohibitive for some brokers and they choose not to invest in it and resort to dirty tricks to stay in business. I am beginning to worry about MT4 brokers. The platform is great, but allows for plug ins that assist them to screw the clients.

Does this make any sense?

[valdjas]

Market Makers want turn your trading into gambling. I have suspicion, that they have put out some systems - which sometimes win and some times lose, and lose more - which makes your trading look like more gambling(free bonuses with some subscriptions). So be careful what you picking up from internet. (Advises to, what they give for free. Found out that less than 50% is correct, and if a new guy appears who gives very precise advise, soon his advises will be less effective.) There is no free lunch.
You have to see clearly the market by your own eyes. Market Makers make thier own price out of the price what they got and if you make your trading desisions based that manipulated chart you lose even if your system is correct. You lose because you don't see the right price. More indicators you have in your system, more vulnerable you are. It's like a frog, there is times when you think that you know where your are but actually your indicator combinations are failing. Less indicators is better. Solution? Have mulitple accounts and seek broker with less interference. I have accounts with 4 brokers.
Your systems should be with only couple indicators.
If you start winning, they want to get rid of you.

[sharon]

any view on eur/gbp

[usbajonas]

Our choices are limited. Keep changeing brokers. Someone answer this-what happens if the forex became regulated?

[Gorncapt]

I've been encouraging my friends who are newer traders to use a real legit IB for their first brokers. There are a few ..VERY few who take their business and client satisfaction seriously enough to provide real help in the face of dirty broker tricks. IBs now are getting more sophisticated with marketing too. It's no longer just enough to offer the protections and improved spreads by being part of the IBs group. Offering a client part of the rebate given to them is a now a standard practice. A new on-line friend is very involved in finding an EA that will be consistent.and she has located an IB for one broker we are both considering who offers free use of a well known EA with an account. This EA is available separately, for about $259 plus $59 US to use monthly. So my Spidey sense goes off right away.....makes me wonder how is all this intertwined??

It's been surmised (under good authority) that since the marketing firm behind Forex Killer and MANY other new-forex-software-of-the-month programs seems to always recommend a particular broker..that this broker is owned or at least in business somehow this marketing group. That means many of the newbies jumping into forex automatically set up with this firm...which is simply a white -label for FXDD. Pretty smart work by the marketers...First you pay them for the software. Second, you open an account with the "recommended" broker and they get a payment for that as well as the rebates on all the trades made by you. NOW add to that the fact that they charge an extra pip at this broker over the spreads at the parent broker--(something new traders may be totally unaware of)-KA_CHING!!

So...when I see this IB offering access to this seemingly successful, expensive EA as an incentive....just makes me wonder.. Does the EA make frequent trades which means frequent rebates for the broker?? Are the EA maker and the broker that same person/entity..?

I'm not saying any of this is necessarily wrong on their part..(its pretty clever maneuvering and marketing)...and, if it works out and you are profitable..OK. I'm just saying.....beware and be a smart consumer. You might be be overpaying for things or getting stuck in a situation padding someone's wallet with money you could easily be keeping.

If you are thinking of using an IB --call them --see the kind of response you get and find all the conditions you need to meet (account size..monthly trade requirements etc.) their criteria for receiving the benefits they advertise. Also --don't be shy to ask for more..if they have something else to give..they might----

just my 2 pips------

Gorncapt

[usama1]

is there any kind of control upon various brokers?