Legit Forex dealers

scottdkuehne · 03-05-2008, 11:32 PM

Most Forex firms and their IBs will tell you anything to get your business. They think your stupid and gullible and will try to fool you into working with them. Most of these places will knock you over the head and take your wallet as soon as you walk in the door. At that point forget all the lies and empty promises the salesman told you to get your business. If you call and complain they will probably lie some more. If you are stupid enough to stick around a place that lied to you to get your business and let them keep getting over on you then they will love you and whisper sweet nothings in your ear. The main problem is the conflict of interest involved, since EVERY firm which is not offering an ECN is counterparty to your trade. There are two business models that a retail Forex firm can pick from, one is to be the initial counterparty to the trade and either match your order with another client or if that is not possible hedge your position with their liquidity provider so that they are not exposed to the market. The other more popular business model is to remain the counterparty to the trade as long as you are in the trade. Which means off course that they TRADE AGAINST YOU and have incentive to see you lose sine they bet against you being a profitable trader. Why is the latter method so popular? It is because the dealer knows that over 90% of retail Forex clients lose money so by trading against the client they can make a lot more money than by only taking the spread and not the risk. Those are better odds than the Casino gets in Vegas and because greed is the primary motivating factor for the owners of these Forex dealing firms most choose the "dark side" and flat out trade against you. Granted there may be a few clients at these firms who consistently make money and if they beat the house too often the house usually either refuses to pay them the profits and claims that they somehow cheated the firm or take their licks and start offsetting the profitable trader's positions with a liquidity provider.

I should know I have been trading professionally for five years and knowing many of the people who work in this business. I have kicked the tires of probably over 100 firms and actually tried about 25 of them. I have spent MONTHS of my life searching for good ones and have been disappointed way to many times to count. Thank god I never had my money stolen by a firm or had the company go under and take my money with it. I recently decided to retire from directly managing accounts and started working as an IB for the few firms I have come across over the years which I felt deserved my business and that of my clients. I have put those companies on my site http://www.forextradersinc.com and explained their benefits, drawbacks (no firm is perfect) and why and to whom I recommend them. I am sure one of the three I recommend will have what you need.

jchu10 · 07-16-2008, 07:57 PM

I'm inclined to agree that a lot of people try and scam you in this business. Trading platforms and IBs can easily trade against you and it's something you have to research before you set up an account with them. I think the real talent in this business is finding those IBs that don't. I've been lucky enough to find one, and I'm willing to shamelessly plug them because I believe that they really do do a great job.

I've been working with RC Jones Capital Markets (Welcome to RC Jones Capital Markets) for a while, and I can honestly say that there's no scam involved. They have over 25 years of trading experience and combine technical and fundamental analysis before they take a position. They also have this great newsletter sent out every night offering their recommendation for exit and entry points. You can have them trade for you, or you can have them teach you how to trade, which I think is the real opportunity here. Everyone has to pay their dues when starting trading, but the due is considerably lower when you have someone there guiding you. Their openness on why they traded what they did leaves little room for scamming, but feel free to check them out yourself if you don't believe me.

They can be directly contacted at rcumming@rcjcm.com or 415-694-1989.

Shameless plug over.

RebateFX.com · 08-30-2008, 08:06 AM

Lol, nice thread. Going on about how IBs are out to screw you, then posting links to your own IB websites. Am I the only one who sees the irony? Thanks for the laugh guys