# Foreign Exchange Brokers



## Stormin_Norman (12 January 2008)

Hello All,

I was wanting to dip my toes into Foreign Exchange and have been checking out all the online traders.

Most I have found have been overseas; I would much prefer if I could have an AU$ account and an Australian regulated company even if it cost a bit more in the pip spread.

I have been looking at Halifax Investment Services (http://www.halifax.com.au/public_panel/about.php) as a provider. They have leverage from 1% (quoted on the main page, could only seem to find 2% in the details). They hold all their money in Australia and are contactable easily.

Which platforms do others use, and how have they fared? I have by no means made my mind up; but from my research so far I have found them the most attractive.


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## tayser (12 January 2008)

Their platform looks to be another Saxo Bank white label.  PacificTrader also white label that platform.  It's actually really nice as it's integrated - equities, CFDs, FX, etc etc.  They have a nicer spread on AUD/JPY than Pacific Trader... however...

My only problem with any retail Australian broker is that they operate deal desks and many deal desks discourage or don't allow any form of scalping (the simplest way to make consistent income on a daily basis).  When you're trading with a market maker, you're trading with a broker - not a bank (or in an exchange with equities/futures etc).

On a semi-related note, I stumbled upon a press release from back in 2000 whereby ANZ announced that they had joined the currenex liquidity pool in our region - I'm yet to hear of any Australian based broker offering the currenex platform (I haven't thoroughly researched it as I don't have no where near enough capital to open an account with them... but nothing's popped up) - is anyone on here using the currenex platform with a broker here or off-shore?


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## Stormin_Norman (13 January 2008)

tayser said:


> Their platform looks to be another Saxo Bank white label.  PacificTrader also white label that platform.  It's actually really nice as it's integrated - equities, CFDs, FX, etc etc.  They have a nicer spread on AUD/JPY than Pacific Trader... however...
> 
> My only problem with any retail Australian broker is that they operate deal desks and many deal desks discourage or don't allow any form of scalping (the simplest way to make consistent income on a daily basis).  When you're trading with a market maker, you're trading with a broker - not a bank (or in an exchange with equities/futures etc).




Thanks for your response tayser. I concluded the same thing about the Saxo Bank white label of the trading platform for Halifax Investment Services and Pacific Trader.

I was also looking at Pacific Trader (http://www.pacifictrader.com.au/) however I saw that the UK division of Pacific Trader was in administration (http://www.pacifictrader.co.uk/) - so that put me off their services somewhat.

Are my concerns at using an overseas foreign currency broker justified? Or do the experienced traders on here use overseas traders and find them better to deal with?

May I be so bold as to ask for some recommendations from people who have used live accounts with some overseas brokers?

With regards to Halifax's dealing desks and 'scalping' i found this review of Halifax's services:



> I have used this broker for a short while live trading.
> They may actually be a more honest broker, but I am not completely sure.
> Their spreads are a little larger that usual indicating that they may be honest. I have never had slippage with them - what I clicked is what I got - and that is with dial up internet.
> Trades often went in the wrong direction after entering but I put that down to bad trading on my part as a beginner.I have since started candlestick trading and my trades have been excellent.
> ...


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## Stormin_Norman (13 January 2008)

I also saw an ad for GFT Australia (http://www.gft.com.au/). Does anyone have any opinion on them?


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## lesm (13 January 2008)

The NFA in the US has been slowly tightening up on what is largely an unregulated or loosely regulated market. Regardless of the platform or spreads offered people may also wish to check/confirm that there fx broker (US) of choice meets or will meet the new capitalisation requirements.



> *NFA announces forex dealers going out of business!*
> by Ryan Teeples
> 
> Wow! The NFA has just announced that four of its Forex Dealer Members (FDMs) will cease operations because of the new capital requirement that started December 21.
> ...







> For Immediate Release
> 
> For more information contact:
> Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
> ...


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## Stormin_Norman (13 January 2008)

Excellent to know, thanks lesm 

Which brokers do people use, and how come?

Do you think its important to have an account and trade in the local (AUD) currency? Or have you found other advantages outweigh the benEfits of that, and local regulation?

Does local regulation help much, or is a UK or US based firm just as reputable as an Australian one?


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## tayser (13 January 2008)

This was just posted on ForexFactory... it's a listing of the 5 big ECN platforms which also shows which banks provide liquidity to them.

http://www.londonfx.co.uk/ecn.html


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## ithatheekret (14 January 2008)

I'm running on a new platform from Deutsche bank DBFX , that was set up for me . It's not bad , I like it ...... anyone else using it ?

The capitalization issues are no problem , and they must have close to a fifth of the current market from what I can work out .

Change is good as a holiday lately though .


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## nizar (14 January 2008)

tayser said:


> This was just posted on ForexFactory... it's a listing of the 5 big ECN platforms which also shows which banks provide liquidity to them.
> 
> http://www.londonfx.co.uk/ecn.html




Thanks for the link.
EFX is not there??


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## tayser (14 January 2008)

EFX is not one of the major multi-broker platforms - they're their own.  Those big 5 platforms are just that: platforms that multiple brokers offer & liquidity is provided by the associated banks.

EFX claim to be backed by 10-15 banks afaik.  When the Japanese have a public holiday, the spreads are quite noticably larger, so I'd say Bank of Tokyo-Mitsubishi is in their pool.  I'd also hazard a guess and say Wells Fargo in the US is in their liquidity pool (they hold client accounts with them)...


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## Thomas Leeper (26 November 2017)

Had an account with them for 4 months . Had problems since day one . First the system was down for a week . When finally started trading I learned that the execution price real time always go against you . Not the real time price ! They are using work a software that is designed to manipulate market price. so they can sachem the difference and make few bucks. Well , I continued trading regardless( After going to see them in the office in Auckland) I learn that the staff no nothing about trading. I wouldn't hire them to operate a coffee shop . The Family office in Auckland is under Regus Holding company which means they can close shop any day and disappear . The 'CEO' (What a joke) guy name Andrew - Very unprofessional. When I met him he was shaken and disconnected -offered 0 help regarding the price manipulation The worst part is yet to come ; The big steal was the margin . Margin calls take place randomly apparently.. even if you got enough funds to support the position . FAKE MARGIN CALLS! I was mislead by a guy name Ricardo - Illegal Immigrant that offered 'support' when I experienced fake margin calls - He lied few times . I asked him upfront ; What level margin call take place? he said - 'When Margin Gets to 0 % Guess what , They closed positions when margin was 20% .Stealing 250.000NZD I REPEAT 250.000 ...Fake margin call..


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## Milk Man (1 December 2017)

I used to trade with Oanda through an American account. Is the Aussie version any good?


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## T0BY (1 December 2017)

No commission (wider spreads) - market maker. I had a v20 account with them and never had any problem. It comes down to personal preference of what you're looking for in a broker I guess.


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## Milk Man (2 December 2017)

T0BY said:


> No commission (wider spreads) - market maker. I had a v20 account with them and never had any problem. It comes down to personal preference of what you're looking for in a broker I guess.




 Mostly reliability and integrity. Haven't heard a bad story about them yet, but I'll be googling my arse off about it before committing 5 figures in any case. They push the spreads out on news events, and they don't advertise that, but I think that's pretty standard. Some don't, but aparently they'll freeze the platform and other shifty bidniss.


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