Forex Brokers... which one?

[Ken from Hantec Australia]

As a person who working in the fx brokerage industry, my opinion is depends on what you want.
Say brokers like Interactive Broker, CMC, IGmarkets and Saxo, they offer almost everything you need for trading but require for some minimum capital to open account (10K for Interactive Broker 3K for Saxo).
Plus500 offers various CFD product as well as FX trading with really good spread but they don't have MT4 and I think they are not supporting API trading.
Small brokers, like Trademax offers really good spread and only $200 deposit.
Easymarket is pretty new broker which offer some fancy advanced product for you to use, but commission and spread are high.
BTW, with Hantec Markets Australia, the company I am working for now, we offer average 0.5 on EUR/USD and 1.14 on AUD/JPY.

 

[>Apocalypto<]

Ken from Hantec sums it very well.

Throwing this cap in the ring, Eightcap another Australian broker based in Melbounre. I've been trading with them now for over two years find them great.

 

[OmegaTrader]

As a person who working in the fx brokerage industry, my opinion is depends on what you want.
Say brokers like Interactive Broker, CMC, IGmarkets and Saxo, they offer almost everything you need for trading but require for some minimum capital to open account (10K for Interactive Broker 3K for Saxo).
Plus500 offers various CFD product as well as FX trading with really good spread but they don't have MT4 and I think they are not supporting API trading.
Small brokers, like Trademax offers really good spread and only $200 deposit.
Easymarket is pretty new broker which offer some fancy advanced product for you to use, but commission and spread are high.
BTW, with Hantec Markets Australia, the company I am working for now, we offer average 0.5 on EUR/USD and 1.14 on AUD/JPY.

Ken as you say you work in the fx brokerage industry.

How are trades handled in your firm?

I would assume that first method would be to match current short and longs internally.
second to either hold the trade or pass it through to the tire one broker or into the otc network.

Questions:

How is it determined whether the trade is passed on directly to the market.
Then is there a A and B book?
Also How is the price shown to the client determined?From what sources?
Is it a range of limited tier 1 brokers or the actual network?

thanks

 

[Ken from Hantec Australia]

Ken as you say you work in the fx brokerage industry.

How are trades handled in your firm?

I would assume that first method would be to match current short and longs internally.
second to either hold the trade or pass it through to the tire one broker or into the otc network.

Questions:

How is it determined whether the trade is passed on directly to the market.
Then is there a A and B book?
Also How is the price shown to the client determined?From what sources?
Is it a range of limited tier 1 brokers or the actual network?

thanks

Well, I not working for Dealing Department for broker, from my knowing, in fact it is not easy to determined whether the trade is passed on directly to the market or into B book.
Some people (from other brokers) said if your broker having slippage means your order is in fact really goes into market.
But as my knowing, in fact some of the broker's dealing are also able to make fake slippage through B book.
BTW, according to my friend who is a mutual fund manager, sometimes, they might ask their broker's dealing to "fix" the order (of course within really short period), so sometimes for the brokers the B book is necessary thing.
And doesn't matter your are in A book or B book, most of the information feed still come from LPs.
So the easiest way to know if your broker are doing the good thing or STP, is to make money in your trading account consistently and ask withdraw some of your money.
About the firm I work, we are offering Straight Through Processing ensures client orders are passed through directly to our liquidity providers.(Copying everything from our website lol).

 

[OmegaTrader]

Well, I not working for Dealing Department for broker, from my knowing, in fact it is not easy to determined whether the trade is passed on directly to the market or into B book.
Some people (from other brokers) said if your broker having slippage means your order is in fact really goes into market.
But as my knowing, in fact some of the broker's dealing are also able to make fake slippage through B book.
BTW, according to my friend who is a mutual fund manager, sometimes, they might ask their broker's dealing to "fix" the order (of course within really short period), so sometimes for the brokers the B book is necessary thing.
And doesn't matter your are in A book or B book, most of the information feed still come from LPs.
So the easiest way to know if your broker are doing the good thing or STP, is to make money in your trading account consistently and ask withdraw some of your money.
About the firm I work, we are offering Straight Through Processing ensures client orders are passed through directly to our liquidity providers.(Copying everything from our website lol).

This is the forex game, broker to serve.

Lvl 0: Broker advertises the dream and offers bonuses to open account.

Lvl 1: A newbie trusts the system and buys into the get rich quick idea and then blows up account through poor risk management or lack of edge leading to commission+spread bleed death.

Lvl2: Newbie gets smarter learns forex is risky, there are dodgy brokers, counterparty risk etc.

Step3:Broker responds we use STP, we have segregated funds and we are a government regulated.

Step 4: Trader fails again or gets gamed again by broker. Orders can be delayed stops hunted etc. Why? Because there is an incentive to do so if the client is placed in the b book.

Step 5: Trader realises that the broker model works against the trader and changes to a non bucket shop broker like interactive brokers and trades directly on the ecn or through futures. The broker makes money by charging a commission not spread+trading against.

 

[OmegaTrader]

Now looking at Hantec who you state you work for.

1) website states: Fully regulate uk company...protection of the Financial Services Compensation Scheme (FSCS) on losses of up to £50,000.

Sound to good to be true.
That means nothing, the scheme only cover negligence/missapproation not losses due to bankruptcy.

...protection where, you receive wrong or misleading investment advise and if an authorised investment provider goes out of business.
unsecured creditor is more likely

2) No dealing desk ensures all client orders are passed through to our liquidity providers directly. This guarantees no price manipulation or re-quotes – allowing you to trade with the genuine markets at all times

Does not stop b booking games , I have no idea what the actual price is unless i directly see all of the liquidity providers prices

3)live chat is an offshore person who has poor english skills
Also the overseas chat give incorrect advice about the fscs gaurantee

4) bonuses/competitions to get new clients
seems more like a bookmaker than an investment

5) seggregated account
means nothing if the funds are pooled or used for hedging. Unless I own a deposit in my name at a authorised deposit taker, I am not covered. That is a different guarantee, for the deposit taking institution. not the $50,000 guarantee for advice only

unsecured creditor....

So why use a bucket shop??
-Account is very small
-Newbie/hobbie
-Bonuses

All I really wanted to know is what really happens at the firm you work for not a drink from the kool aid.

Does your firm trade against clients? That is the real question.

 

[Ken from Hantec Australia]

Hi OmegaTrader

Maybe you were looking at our UK office websit. Cuz the Oz one, my company is currently doing the upgrading.


1) website states: Fully regulate uk company...protection of the Financial Services Compensation Scheme (FSCS) on losses of up to £50,000.

Sound to good to be true.

That means nothing, the scheme only cover negligence/missapproation not losses due to bankruptcy.

...protection where, you receive wrong or misleading investment advise and if an authorised investment provider goes out of business.

unsecured creditor is more likely


Well as you say it is too good to be true and that is the rule for FCA, in U.K., it is the requirement for U.K. as a FX broker. personally, I don't really know what is our U.K. office's marketing strategy; however, the Australian office are following ASIC regulation rule, which means if you are an Australian and want to trade with us, you should open your account with Australian office instead of U.K. office.

Before this year, Australian Office were only doing whole sales fx brokerage with some Hong-Kong, Australian, China business for doing hedging trading; therefore, we did not do the marketing as aggressive as our U.K. office.

To be clear for you, personally, doesn't matter which broker you want to trade with, make sure they are ASIC regulated and they only use Australian License in Australia.




2) No dealing desk ensures all client orders are passed through to our liquidity providers directly. This guarantees no price manipulation or re-quotes – allowing you to trade with the genuine markets at all times

Does not stop b booking games , I have no idea what the actual price is unless i directly see all of the liquidity providers prices


In Fact, from my knowledge, it will be impossible to give you the real quote on the globe currency markets. If you are familiar with U.S. stock market, you might heard about dark pool, and in currency markets, all the banks are like dark pool, who are providing liquidity to the markets and in fact you might not be able to access to all the depth of the market, cuz there are far too many liquidity provider in the market. All the banks and governments' central banks are doing the currency exchanging are the liquidity provider, as well as the currency broker and currency exchange broker.


That's the true, the market is so unclear that some of the trader they are still able to do the scalping and arbitrage even now the days. (Hope nobody will kill me cuz I telling you about this XD)



BTW, according to what I know, Interactive Broker, Oanda, and LMAX they offer you to do the settlement with the currency you have.


3)live chat is an offshore person who has poor english skills

Also the overseas chat give incorrect advice about the fscs gaurantee


Well actually I am also from overseas, which I believe you can easily find out that from my writing, but I am also surprise about our CS team in London does not have good English skill, which does not have good English skill. Cuz, according to company policy U.K. office is required to do more international marketing than Australia.


4) bonuses/competitions to get new clients

seems more like a bookmaker than an investment



Well, no comment on different marketing strategy. And base on what I know, most of the brokers are always doing that for getting new clients. Cuz no client, no trading, means no profit. Doesn’t matter, Interactive Broker, Saxo, CMC, IG…all the same.


5) seggregated account

means nothing if the funds are pooled or used for hedging. Unless I own a deposit in my name at a authorised deposit taker, I am not covered. That is a different guarantee, for the deposit taking institution. not the $50,000 guarantee for advice only


Different country different rule, so I can make any comment on that; however, if you are an Australian, and open an account with an Australian regulated broker, then it should not bother you too much, cuz ASIC will try their best to protect you and picking on us.

unsecured creditor....


So why use a bucket shop??

-Account is very small

-Newbie/hobbie

-Bonuses


Sometimes, they always need some one new to trade so always have to do the ad, marketing, and even promotion, same case as bank service, the only different is the all the financial instruments are always risky.


All I really wanted to know is what really happens at the firm you work for not a drink from the kool aid.


Does your firm trade against clients? That is the real question.


No but also yes! Which I believe most of the broker does. Like what I said before, some institution they do need some special offer from the broker, such like: change the position (Long/Short), a must open price for the position or put their big order into the market…etc. Which makes Bbook is necessary, cuz if they don’t do Bbook “to” the institution’s order, some of the service cannot be provide. However, this is not the issue for most of the retail client, cuz there is no such need from retail client. Most of the retail case for slippage are due to the market condition change too fast or huge order coming into market. So you might notice that some of the intuitional trader does not have these problem, because there is such thing call b book which the broker take the risk from the order(of course with some extra charge) and give the intuitional trader the right price, and right position.

Hope my boss will not fire me because of the things I told you lol.

 

[OmegaTrader]

Hi OmegaTrader

Maybe you were looking at our UK office websit. Cuz the Oz one, my company is currently doing the upgrading.


1) website states: Fully regulate uk company...protection of the Financial Services Compensation Scheme (FSCS) on losses of up to £50,000.

Sound to good to be true.

That means nothing, the scheme only cover negligence/missapproation not losses due to bankruptcy.

...protection where, you receive wrong or misleading investment advise and if an authorised investment provider goes out of business.

unsecured creditor is more likely


Well as you say it is too good to be true and that is the rule for FCA, in U.K., it is the requirement for U.K. as a FX broker. personally, I don't really know what is our U.K. office's marketing strategy; however, the Australian office are following ASIC regulation rule, which means if you are an Australian and want to trade with us, you should open your account with Australian office instead of U.K. office.

Before this year, Australian Office were only doing whole sales fx brokerage with some Hong-Kong, Australian, China business for doing hedging trading; therefore, we did not do the marketing as aggressive as our U.K. office.

To be clear for you, personally, doesn't matter which broker you want to trade with, make sure they are ASIC regulated and they only use Australian License in Australia.




2) No dealing desk ensures all client orders are passed through to our liquidity providers directly. This guarantees no price manipulation or re-quotes – allowing you to trade with the genuine markets at all times

Does not stop b booking games , I have no idea what the actual price is unless i directly see all of the liquidity providers prices


In Fact, from my knowledge, it will be impossible to give you the real quote on the globe currency markets. If you are familiar with U.S. stock market, you might heard about dark pool, and in currency markets, all the banks are like dark pool, who are providing liquidity to the markets and in fact you might not be able to access to all the depth of the market, cuz there are far too many liquidity provider in the market. All the banks and governments' central banks are doing the currency exchanging are the liquidity provider, as well as the currency broker and currency exchange broker.


That's the true, the market is so unclear that some of the trader they are still able to do the scalping and arbitrage even now the days. (Hope nobody will kill me cuz I telling you about this XD)



BTW, according to what I know, Interactive Broker, Oanda, and LMAX they offer you to do the settlement with the currency you have.


3)live chat is an offshore person who has poor english skills

Also the overseas chat give incorrect advice about the fscs gaurantee


Well actually I am also from overseas, which I believe you can easily find out that from my writing, but I am also surprise about our CS team in London does not have good English skill, which does not have good English skill. Cuz, according to company policy U.K. office is required to do more international marketing than Australia.


4) bonuses/competitions to get new clients

seems more like a bookmaker than an investment



Well, no comment on different marketing strategy. And base on what I know, most of the brokers are always doing that for getting new clients. Cuz no client, no trading, means no profit. Doesn’t matter, Interactive Broker, Saxo, CMC, IG…all the same.


5) seggregated account

means nothing if the funds are pooled or used for hedging. Unless I own a deposit in my name at a authorised deposit taker, I am not covered. That is a different guarantee, for the deposit taking institution. not the $50,000 guarantee for advice only


Different country different rule, so I can make any comment on that; however, if you are an Australian, and open an account with an Australian regulated broker, then it should not bother you too much, cuz ASIC will try their best to protect you and picking on us.

unsecured creditor....


So why use a bucket shop??

-Account is very small

-Newbie/hobbie

-Bonuses


Sometimes, they always need some one new to trade so always have to do the ad, marketing, and even promotion, same case as bank service, the only different is the all the financial instruments are always risky.


All I really wanted to know is what really happens at the firm you work for not a drink from the kool aid.


Does your firm trade against clients? That is the real question.


No but also yes! Which I believe most of the broker does. Like what I said before, some institution they do need some special offer from the broker, such like: change the position (Long/Short), a must open price for the position or put their big order into the market…etc. Which makes Bbook is necessary, cuz if they don’t do Bbook “to” the institution’s order, some of the service cannot be provide. However, this is not the issue for most of the retail client, cuz there is no such need from retail client. Most of the retail case for slippage are due to the market condition change too fast or huge order coming into market. So you might notice that some of the intuitional trader does not have these problem, because there is such thing call b book which the broker take the risk from the order(of course with some extra charge) and give the intuitional trader the right price, and right position.

Hope my boss will not fire me because of the things I told you lol.

Thanks

You reply really sums it all up. Avoid ...

 

[Ken from Hantec Australia]

Thanks

You reply really sums it all up. Avoid ...

Hope my boss not fire me when he saw what I wrote XD
Again, doesn't matter which broker you want to trade with, make sure they are ASIC regulated and they "only use Australian License" in Australia.

 

[OmegaTrader]

Hope my boss not fire me when he saw what I wrote XD
Again, doesn't matter which broker you want to trade with, make sure they are ASIC regulated and they "only use Australian License" in Australia.

Yeah nah mate

no idea...

 

[avenger19]

does anybody know if berndale capital offers managed fx trading accounts? i heard they did, but i can't find any reliable info about it. does anybody have any experience with berndale managed accounts? do you recommend them?

 

[cynic]

does anybody know if berndale capital offers managed fx trading accounts? i heard they did, but i can't find any reliable info about it. does anybody have any experience with berndale managed accounts? do you recommend them?

Out of the myriad FX providers advertising their offerings, what was it about Berndale that piqued your singular interest?

 

[avenger19]

Out of the myriad FX providers advertising their offerings, what was it about Berndale that piqued your singular interest?

i hear thru the grapevine that berndale did something like professionally managed accounts. i'm interested to know how that works, whether the offer is any good and what it costs. (my experience is that something like that comes with a cost)

ultimately, if you know of other fx providers how offer the same thing, then i'd be interested to learn more ...

 

[cynic]

...

i hear thru the grapevine that berndale did something like professionally managed accounts. i'm interested to know how that works, whether the offer is any good and what it costs. (my experience is that something like that comes with a cost)

ultimately, if you know of other fx providers how offer the same thing, then i'd be interested to learn more ...

You know, it's funny that you say that.
I often get cold called by providers marketing the type of service you are enquiring about.
Just this last fortnight I received three such calls. I am reluctant to mention the name of the company due to the quantity of unfavourable reviews my google search uncovered. (A practice I thoroughly recommend to anyone considering an offering of services, financial or otherwise, by any provider).

But since your "grapevine" research, was somehow only able to yield a single provider, I have to ask, how do you envisage yourself benefitting from the service you seek?

What is your evidential basis for holding such beliefs?

Have you performed a google search on Berndale's AFSL number?

If so, what did that uncover about the usage of that number?

Have you performed a google search for reviews by clients of the companies associated with that AFSL number?

The performance of the above homework, will likely yield answers to the questions of any prospective clients. Nefarious marketers, may discover their answers elsewhere, (typically a level of Hades specially reserved for the opponents of altruism).

 

[avenger19]

...

You know, it's funny that you say that.
I often get cold called by providers marketing the type of service you are enquiring about.
Just this last fortnight I received three such calls. I am reluctant to mention the name of the company due to the quantity of unfavourable reviews my google search uncovered. (A practice I thoroughly recommend to anyone considering an offering of services, financial or otherwise, by any provider).

But since your "grapevine" research, was somehow only able to yield a single provider, I have to ask, how do you envisage yourself benefitting from the service you seek?

What is your evidential basis for holding such beliefs?

Have you performed a google search on Berndale's AFSL number?

If so, what did that uncover about the usage of that number?

Have you performed a google search for reviews by clients of the companies associated with that AFSL number?

The performance of the above homework, will likely yield answers to the questions of any prospective clients. Nefarious marketers, may discover their answers elsewhere, (typically a level of Hades specially reserved for the opponents of altruism).

the grapevine is not research. it is word of mouth.

just done the asic search. the afsl conditions are interesting. can't see any condition allowing discretionary trading.

maybe the other providers you speak of are in the same boat

 

[cynic]

the grapevine is not research. it is word of mouth.

just done the asic search. the afsl conditions are interesting. can't see any condition allowing discretionary trading.

Those closely following the news reports of ASIC's testimonies at certain enquiries in recent years, will likely recognise that rules are somewhat pointless if nobody enforces them.

maybe the other providers you speak of are in the same boat

Maybe they are, or maybe they're not. Or maybe they have recognised the opportunities afforded by the shortcomings of financial regulation in Australia!

Whenever considering any service offering, at minimum, I recommend that the prospective client, examine online reviews posted by current and former clients.

Did your search reveal any events, surrounding the FX provider/s, currently, and/or formerly, operating under AFSL #290108 ?

And what of the client reviews for those FX providers?