I might be exaggerating but I trade mostly exotics. How would you arbitrage spot prices between two Forex brokers?
I have noticed quite a difference between FxChoice and Finpro’s historical prices at times. I am trading higher time frames so maybe at the 1min level you wouldn’t see as much variation.
Indeed…the same thing can be said about crypto exchanges that are concerned about ‘the appearance of compliance’. It also does not hurt them to know that they can use it as justification for taking full control of your funds and terminating your account at the drop of a hat if they need to, as it typically violates terms of use and would likely void any agreements.
I did not really have a problem with their response, but with the circumstances that lead to arriving at that response. I think that being open and upfront is not the same as an admission of guilt after evidence has been provided. Many traders would likely agree that the details regarding their heavy spread markups is something that should be disclosed upfront. They advertise their low commission fees, but make no mention of their adjusted spreads. If you trade cryptocurrency through them, using max leverage, you are automatically giving them 22% of your profits. At that point, the cost of the commission is meaningless by comparison. It is understood that some brokers charge a commission, some pad spreads and some do both – but that kind of information should be clearly laid out, upfront. Just my opinion.
I have given my thoughts on the matter in my other posts, but overall, I am personally more bummed that I will not be able to trade crypto through them. I prefer to keep my account balances low when trading through a crypto exchange or via an unregulated broker, so I require higher leverage as a result. There are other brokers, fortunately, so I will not lose any sleep over it.
My point was that the professional HFT arbitragers would
already have eliminated profit opportunities in Forex…
I don’t think retail connections would permit profiting from
pricing differences among brokers; and I never tried to use
any arbitraging strategy, so I haven’t thought it through…
As to the mechanics of such a thing, you’d do it
with simultaneous connections, as with NJ4X and custom
coordination among the brokers, of course; but, again,
I just don’t think there would be
any opportunity there… Since I don’t trade “exotic” pairs,
maybe there is something there; although I doubt it…
There would be too much slippage at the volumes you’d
need to push in order to hope to profit from any theoretical
arb possibility, I’d say… There’s more money to be made
in micro scalping within a single broker, I’d say…
…not much of an answer to your question…
[EDIT] Forex Arbitrage
hyperscalper
It used to be that arbitrage was fairly common and doable with crypto. I do not know if that has changed yet or not. Since you are trading directly on the exchange and can quickly and easily transfer your funds, all you really need are the accounts set up and a good bot to automate the process. I spoke with a fellow that was doing manual transfers and was able to make good returns with deep price disparities.
Exactly…This is Admission of Guilt… it took @_METHOS to go through and check the details to finally making them admit that Hugos way were marking up spreads and then charge commissions on top of the Marked up spreads as well…
If you have the time and the inclination to contribute to this thread, please help vet the following
raw list of broker names.
Your task, if you choose to participate, is simply to determine:
Is this a retail spot forex broker who will accept new US clients?
That’s it, for the first step – no need to delve into trading conditions (spreads, commissions, etc.)
at this stage.
Don’t be surprised if 9 out of 10 (or more) of the brokers listed below do not pass our first screen (welcoming US clients). However, see the note at the bottom of this post.
Screening and sorting the hundreds and hundreds of brokers out there is the primary business of this thread. If you’re ready to get back to business, please pitch in.
24 option
8Cap
A-Markets
Anzo Capital
ATFX
Axiory
AXI Trader
BCapitalsFX
Binomo
Century Financial Brokers LLC
CMTrading
DeltaFX
DubaiFXM
Dupli Trade
easyMarkets
ForexMart
Formax
ForTrade
fpmarkets
FXb
FX Giants
FXNobel
Gerchik & Co.
Henyep Capital Markets Ltd
HotForex
HYCM (is this the same as HY Markets?)
Ibinex
IFC Markets
iForex
InvestingPro
iq option
Juno Markets
Just Broker
JustForex
KVB Kunlun
Land-FX
LCG
Libertex
MatadorPrime
Milton Markets
MTrading
MYFX Markets
Noor Capital PSC
Nord FX (is this Nord Markets?)
OlympTrade
Orbex
Orient Financial Brokers
Persepolis Capital Management
Plus500
Q8 Trade
RallyTrade
Saxo Bank Dubai Ltd
SimpleFX
Spot International
StarfishFX
STForex - Straight Through Forex
Swiss Markets
TeleTrade
TitanFX
Trade360
TradeView
TrioMarkets
TTCM Investment
ufx (is this UpFX?)
ValuTrades
Vestle
Z.com Trade
ZuluTrade
Note:
Keep in mind that we are finding that some shrewd offshore brokers have a publicly-stated position
(no US clients), and an actual position (low-profile US clients, who come in under the radar, are welcome). We should identify such brokers, and investigate them further.
SIMPLEFX
Is this a retail spot forex broker who will accept new US clients?
I have had an account for a while, but have not used it much.
It’s what they call a “Real Account” meaning a “Live Account”
[EDIT] they do offer an MT4 platform, and possibly MT5, in
addition to their Web based interface.
USING A VPN WITH AN ENDPOINT IN CANADA,
I tried to sign up and received this Terms and Conditions link:
As you can read, the issue of U.S. persons is addressed…
USING A U.S. VPN ENDPOINT, there is a flat refusal for U.S. persons
based on IP geolocation… see image attached
[EDIT] Having said this, SimpleFX is an impressive offering, and are
simply complying with the CFTC “nanny state” pressures on what
is obviously a well managed service.
[EDIT] they offer crypto funded as well as “fiat” currency accounts,
but I don’t know what the “verification” procedure is for the “fiat”
accounts… Originally it was a BitCoin only broker, I believe… but
clearly they have since expanded their scope.
hyperscalper
PUBLIC FORUM STATUS
I’m sure everyone here is aware that, as a public forum, this
is a great way for adversaries to glean information which
could target specific brokers, or even forum members…
Any thoughts on this, @Clint ? Any options for a private,
verified member status forum where we could speak more
freely?
hyperscalper
Short answer: not anymore…
I used to trade with SimpleFX before 1broker was taken down. As a US citizen, trading with them now violates the new terms of service. Personally, I am not comfortable depositing funds while clearly violating terms of service.
Couple thoughts on this…
The idea of a private forum is a good one. We really shouldn’t need one, but the situation is bad right now.
I am interested in staying in contact even if the forum goes private.
However, if I may expound a bit, I think the key might be in affecting change in policy here at home.
I love the USA and our founding principles. We need to change some of these recent laws.
They belong in a dictatorship, and have no place in our free Republic.
Sadly, there doesn’t appear to be any interest in repealing FATCA in either major political party.
It makes money and both parties like to spend.
Traders and expats are getting serious grief from this law. I don’t think it is intentional (i.e. we’re not the target), but I also don’t think
most of our politicians really care.
We make up a tiny percent of the population and they are generating billions of dollars from FATCA.
Our lost opportunities are collateral damage.
Perhaps the best solution is to push for more reasonable laws on domestic brokers, or a license traders can obtain to trade freely (agreed we shouldn’t have to, but change what you can).
I pay a lot in taxes. I declare my income.
Plus, I bring money home to the US to spend in the US.
There is really no logical reason for the government to inhibit my trading.
Also, encouraging brokers to set up shop here would generate more jobs and tax revenue.
This game of whack a mole on brokers is not ideal and I don’t like the trajectory. I am sure there are some people with some power to affect change.
Is there something we can do to secure our trade here at home within the system?
There is a lot of brain power here in this forum and many people more legally inclined than I. What can we do?
Excellent post - I’d love to see some brains come together and see what we can figure out. You’re so right about traders getting the crap end. I’d elaborate but it’d be too much and you’ve already made a few clear and valid points.
This is a really good idea, but I don’t know how it could be implemented? There have been several times over the years I wanted to discuss something but didn’t feel like handing over my plans to some bureaucrat. No doubt they keep an eye on things here.
Coinbase has linked with Paypal for instant withdrawals. Get yourself a Paypal debit card and have convenient access to your funds like we did ten years ago. It will be interesting to see how long it lasts before some bureaucrat feels the need to ‘protect’ me.
Coinbase abandons its cautious approach with plan to list up to 30 new cryptocurrencies
Orbex: You can select United States, which yields the following message…
Based on your selected country, please note that your trading account will be under Orbex LIMITED a company registered in Saint Vincent and the Grenadines
It appears all of their (Orbex) accounts have commission built into the Bid/Ask
spread with no option of variable spread plus commission pricing. And
also there don’t appear to be any crypto transfer facilities.
Also their minimum funding seems high, with $5k for their Premium
"Variable Spread" account which still has no commission. So it doesn’t
make a lot of sense to me, they are giving you “variable spread” but
not segregating or quoting a commission rate? I guess they need
this for revenue…
[EDIT] Nevertheless… they do cater to U.S. persons, so I don’t want
to be too negative just by looking at the website…
[EDIT] ESMA Product Intervention
hyperscalper
Brokers that ACCEPT US Clients
https://pcmbrokers.com/ their website is just a bank screen with a contact form. But looks like they’ve
rebranded themselves as FXPCM & they accept us clients but will verifying their documents. Had a chat with their reps.
Had a chat with the brokers listed below and they confirmed that they do not accept US clients
Not a broker, an auto trading platform that only works with regulated brokers.
Yes HYCM was formerly HY Markets
B2B, not a forex broker. Offers crypto currency exchange white labels
Yes the SVG note does come up but when I chatted with them they said no
its a foreign currency exchange platform not a forex broker!
Not clear from their websites if they accept US clients, so sent them am email. Will update here once I hear back from them
DubaiFXM did not deny that they do not take US client but insisted on a phone number, which I wasn’t keen on sharing. So it seems like they might take US clients. Sent them an email as well, will update when they get back
Was able to set up an account with them after selection location as United States. Am waiting for them confirm though
Out of Business
I use Hugosway(without issues so far), I noticed they were not on your list?
@jessoprules they are JAFX copycats & from what’s been posted around on all forums they seem to the the same guys. Not sure they are fit for this list. they’re already in trouble with cftc. why list a broker who is already on radar with regulators? And since you’ve with JAFX as well you must have noticed the start similarities ?
