anyone making any currency margin trading

Closed Thread
Page 1 of 2 1 2 LastLast
  1. #1

    Join Date
    Oct 2006
    Posts
    10

    anyone making any currency margin trading

    which bank offer the best service and terms and conditions?
    any comment?


  2. #2

    Join Date
    Feb 2007
    Posts
    19

    Although many of the banks offer margin services (typically you use very high leverage in fx), the spreads are usually very high. I would recommend using an internet-based service. Have a look at www.fxcmasia.com or dbfx.com (I use the former). You want to be getting spread of no more than 3-4 pips on EUR/USD. For comparison Hang Seng Bank margin fx accounts have a 10 pip spread. For information, have a look at www.dailyfx.com.


  3. #3

    Join Date
    Oct 2006
    Posts
    10

    i am using standard chartered bank, yes, you are correct, the spread is not acceptable.. 10pp for normal 12 pp for cross..

    i am just wondering, if i have an account with fxcm, then in which way they ask for the pledge?


  4. #4

    Join Date
    Feb 2007
    Posts
    19

    Pledge? Cool cash is all y'need. You can open an account with just a few hundred dollars, but that's risky as you can wipe out fast because you will be over-leveraged. Any positions will be automatically closed if your paper losses exceed your deposited balance of funds.
    You need to be adequately capitalized to trade the fx. They do minilots of 10,000 currency units each so you can do the math; a generally accepted rule is that you should not risk more that 2% of your capital on any one trade.
    Good luck.


  5. #5

    Join Date
    Feb 2007
    Posts
    10

    ive heard horror stories of fxcm

    in the end the spreads are useless... there are other more innovative ways to make money off you.

    basically...whatever you do- do not trade around economic releases.... ie. NFPs, etc

    FX is otc and the retail FX mkts are generally unregulated, so these brokerages can basically quote whatever the hell they want. ive heard stories of horrendous slippage, i.e. driving the rates in the opposite direction of the mkt momentarily to pick up all their client's stops (putting you in a short position) and moving back the other way (till your margin runs out essentially) =) sheisters they are.

    if youre willing to step up your your acct size, then guys like saxo and gain are little more professional in their dealing practices from what i understand.

    dont know how the big banks are, im assuming its better (hence the wider spreads?). if you are G money i think some private banks offer levered FX accts, im assuming their dealing practices and customer service are better than your standard chop shop with 0.5% margin.

    Last edited by NYCcabby; 25-02-2007 at 03:53 PM.

  6. #6

    Join Date
    Oct 2006
    Posts
    10

    gazzman
    is fxcmasia good? i have applied a demo account, it seems ok. do you have more comment? is it realizable? as we have to put cash into their account..

    it seems to me that the trade is quite fair, and its internet platform is quite user friendly.

    NYCcabby,
    r u in HK now? your stories sound horrible. do you know which brokerages they were talk about?

    G money=how much?.. which private bank in HK do you recommend?


  7. #7

    Join Date
    Feb 2007
    Posts
    10

    fxcmasia i assume is the same as fxcm? might want to research that. also when refco blew up last yr, i think fxcm got spun-off, so definitely look into who the new owners are.

    im NOT in hk, but hopefully soon =)

    the horror story i referenced was of fxcm, its not firsthand, but i saw on a forum somewhere.

    as far as private banks- just call the big guys? citi? ubs? i think so long as you have a "sponsor" who introduces you into the bank, anyone can have a bank acct. as far as actually trading FX, no idea.... being that these guys are like $10mm USD min balance, not easy to start trading i take it...


  8. #8

    Join Date
    Feb 2007
    Posts
    19

    Maybe NYCabby has heard something that I haven't, but so far I haven't had any major gripes with FXCMAsia (same as FXCM) except a very occasional problem with their software. Until recentlythey have been acting as a market maker and basically taking the other side of all your trades - perhaps that's where some abuse might have slipped in. Recently they changed their system so the quotes come directly from the interbank market, so that should eliminate (or reduce?) any cheating. Running stops is a very common practice in the fx - watch the London open on a 10 or 15 min chart, especially when prices are around a psychological round number or an important support or resistance point and you can sometimes see the London traders rapidly move the prices to hit stops.

    I agree with NYC to avoid trading the news releases like NFP - it's far too volatile unless you have great intuition and deep pockets. Better to wait to after the event and see what trends arise.

    FXCM runs free seminars in their office in Central that you could go to. They are pretty elementary but do cover the basics. Of course, they want to encourage you to trade with them...

    Personally, I'm quite happy with FXCM. My major problem is trying to learn to trade the fx... you need a clear trading plan, but I've found more important is money management (firm stops and targets) and discipline. For me, I can't see myself ever making big money without big risks so its a matter of slow but consistent gains. Others may be different, but I need to preserve my capital as much as possible (having learned the hard way by completely blowing out a futures account with Sun Hung Kai Futures - now THAT'S a bunch of crooks....)

    DBFX also run on the same platform as FXCM. It is part of Deutschebank so I don't think their integrity would be in doubt. I'm not sure if they trade in minilots (10k) or full lots (100K) though.

    Good luck and let us know how you go!

    GM


  9. #9

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,585

    frankly, i am not sure if the platform is designed to do that (i.e. manipulated by the traders to kick in all the stops before swinging it the other side). even if unregulated i think the auditors and tonnes of people handling it would have had the opportunity to voice something of that magnitude and get them into trouble.

    anyway, keeping an open position over figure releases have never been a great idea, unless you are absolutely certain taking that view to punt on the market. even the CBOT and CME trades u see traders swinging the market one way to hit all the stops, then let supply/demand normalize the price. these would actually causes simultaneous swings in the forex market (some are trader originated, others are machine generated)...


  10. #10

    Join Date
    Feb 2007
    Posts
    10

    yah... as gazzman said, these "chop shops" definitely take the other side of your trades (at least for these mini accts). i mean afterall for these guys, its like free money, since 9/10 amateurs have little to no understanding of margin and managing their positions.

    but overall, sounds like the retail FX mkts are maturing and dealing practices are definitely improving? my information is at least a yr old, so take it with a grain of salt.


Closed Thread
Page 1 of 2 1 2 LastLast