Does anyone recommend forex.com for trading currencies.
It depends if you want to trade for a market maker or not? Their main interest is not definitely to make you a winner - to say the least.
Most brokers are market maker… but the positive here is that Forex.com is a big company so he as a very good chance of actually getting paid. Of course the trading conditions will not be the best in town but I am sure he wont have any problem with withdrawals. So i would say OK for a beginner.
Why do you think that most brokers are market makers? I guess that this is a an mistakable assumption of traders who in case of their failure blame brokers, what about market conditions, market is not a stable place…
stealthepips is right. Very many brokers are market makers and make a profit when you lose. At the same time, it is also true that with large companies you have better withdrawal chance. And as a newbie they might be safer than offshore brokers. Still, it does not change what I said: they make money when you lose.
Here we go again…
Will it ever die?
The market makers do not need you to lose at all to make money. Every single trader they deal with could be making a killing and they could still make money. The whole “market makers profit from your losses” is bullshix used by STP dealers to try to scare traders who don’t know how market making works. The STP dealer charges you either a mark-up or a commission, whatever they call it, do you then say that they “profit from your losses”? The market makers simply charge you the spread, if you are a retard who is selling to the bid and buying from the ask right away to lose the spread, then yes their income is exactly your losses. But who does that? What difference would there be if some moron did the exact same thing with an STP dealer? Nothing.
If you lose 150 pips on a trade that you hold several days, the market maker does not bag those 150 pips. He takes perhaps a few pips, whatever the spread was, but he is not “on the other side of your trade”. He is not waiting for you to close the trade so he can pocket your loss. That is not how market making works. Google it or something.
Forex.com is a market maker, so are most fx dealers. So what? So you get an account with an STP dealer? And what does he do? Ha! He forwards your order to an undisclosed market maker and charges you a markup in addition to the spread you paid the market maker. How is that really any better? Want to trade fx? Then you are going to deal with a market maker whether you believe it or not. Want to trade NYSE stocks without a market maker? Sorry, the NYSE is a market maker, or said more accurately it is a firm that makes markets using many designated market makers (google NYSE DMM).
If you want to protect yourself your options include:
1.) Open accounts with multiple dealers and diversify your dealer risk.
2.) Put only a minimal deposit on account with your dealers.
3.) Keep most or as much as possible of your capital in an FDIC insured bank account at home.
4.) Trade as long term as possible so as to reduce the percentage cost impact of the spread and fees on your trade.
5.) Trade as infrequently as possible so as to reduce dealer fees.
Those are some things you CAN do. Picking the most honest dealer out there is not anywhere near as possible as those options. There could be more, anyone out there can help me out.
Feel free to trade with market makers including forex.com, the only way to avoid doing so is to not trade at all.
-Adrian
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My forex.com MT4 platform disconnected two HOURS ago. I tried logging off / logging back on, rebooting my computer, etc. Lower right hand corner that shows servers said “n/a” for both listed servers. Not a problem on my end. My offshore broker MT4 platform continued to run without a problem. Forex.com MT4 reconnected 10 minutes ago but, has yet to update charts with the still missing candles… acting like it’s frozen. Last week, forex.com had 45-90 second delays in execution.
My opinion… don’t use forex.com.
so its better to trade with an ECN, if only we had one in the US, besides interactive and TD
yeah but dude, MM can do some really funny shit with spreads, your not trading into a market such as an ECN like Dukascopy, your playing an interactive game, where the odds are set against you…so not only are you playing against the market but also your broker…something to be mindful of…this regulation shit is the US, u really think its for our benefit, no if your trading with a few million those rules don’t even apply…strange wouldn’t u say, and basically every broker we are left with is market makers…very convenient…MM can literally do whatever they want your deposits are not insured, that was a great speech but ultimately you are wrong chief! why do u think the companies revenues are so high, gain capital, oanda corp…food for thought