Going offshore to escape the CFTC

Broker Discussion Forex Brokers
5827

You haven’t missed a thing, HS.

As free traders seeking to freely trade a free market in foreign currencies, our problem is that the government uses a corrupted definition of money laundering.

Here’s the accurate definition:

Here is the government’s unstated definition:

  • Money Laundering is the process of moving money around in any way which fails to leave a paper-trail that the government can follow to determine where the money came from, whether it’s been fully taxed, and where it’s going.

This leads to the government’s unstated policy:

  • If we can’t track what you are doing with your money, then we assume that your money is dirty, and you are attempting to launder it. In every such case, we will charge you with money laundering, and take steps to seize your assets.

One result of this policy is that I can’t walk into my bank and withdraw $10,000 without kneeling before the government and asking, “Nanny-Mother, may I? – Yes, Nanny-Mother, I will fill out all your forms, and tell you why I want some of my own money, and what I intend to do with it.”

If I make more than a couple of withdrawals of less than $10,000 each, the government will charge me with structuring my withdrawals so as to avoid the $10,000 reporting requirement. Then, the government will take steps to seize my assets.

If I have a stash of cash at home, and decide to remove from my stash enough money to buy a car, the car dealer won’t sell me a car for cash – not because he thinks the cash might be counterfeit, but because, if he accepts the cash, the government will come down on him for aiding and abetting a “money-laundering scheme”. Never mind that it says – in all caps – on every piece of US currency:
THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE. Yeah, right.

Welcome to the world of The Patriot Act, and FATCA. Welcome to George Orwell’s 1984

Big Brother is Watching You

Big Brother is Watching you, and Big Brother is watching your money.

1 Like
5828

CASH TELLER DEPOSIT TO CHASE REFUSED

Yeah, I tried to deposit a few hundred cash into my
brother’s Chase checking account over the counter.
They refused, cannot accept cash, period.
Nothing the tellers can do about the policy.

hyperscalper

5829

we have a complaint against coinexx

5830

Trading on Coinexx live right now, had a pretty interesting price inconsistency. Granted it was in my trade’s direction, just thought it was weird. This is on the GBPJPY.

1 Like
5831

It’s sad to hear about this guy’s loss. But looking at his account size, I guess it was bound to happen with this amount of risk. I mean 200+ lots and he was obviously over-leveraging. That’s where leverage kills you even in a slightest of movement.

1 Like
5832

i posted the same thing as poundtrader in that same thread, but that don’t explain the same huge spike in spreads on the pairs he was holding at the time

5833

i think spread widening is quite common in the major pairs especially during the news hours. that is why its recommended not to trade in big lots during these news timings. A slight volatile movement and boom you hit the marginal call! His tea time really cost him a lot. But i must say he seems quite a courageous trader to me. Such huge lots and leverage.

1 Like
5834

If going to trade with high leverage, one should break up into numerous smaller positions. In this way, your entire position will not be margin called during a spike. Myself, although my brokers offer 400 and 500:1, my positions are 2:1 and that max I will have is 5 positions on one pair, so 10:1. That is plenty for my style of trading.

1 Like
5835

Completely irresponsible trading, when you play
with Fire you get Toasted… pushing above the 200
maximum lot size limit (guy pushed to 210 lots) and
then blaming someone else for a margin call or
leverage-related stop loss under the worst possible
conditions…

Hardly merits any further comment.

[EDIT] Krap like this just further feeds "the Nanny State"
desire to protect idiots like this trader with his ForexPeaceArmy
complaint, from their own stupidity. I’ll just repost the link:

[EDIT2] …of course this does not refer to @SmallPaul !! who only
reported the presence of the complaint

[EDIT3] I was blasted in a private email for taking the broker “off the
hook” so to speak, for the broker’s responsibility in this alleged case…
Well, surely, we shouldn’t assume the broker is cheating clients,
and an ECN broker may not be able to control the behavior of
Liquidity Providers, so there is an complex chain of events which
lead from apparent abuse of leverage to a devastating loss due
to a forcible position closure… For me, it’s just so easy to blame
a broker, and cherry-pick specific issues, even without knowing
all the facts, and my position is that we should give these brokers
"the benefit of the doubt" and regard them as “innocent until
proven guilty”. We don’t have that many brokers we can choose
from… as I’ve suggested many times before.

hyperscalper

1 Like
5836

you are lost if you think this is feeding the nanny states, we can’t allowed these offshore brokers to RIP people off just because we wanna get away from the nanny states. so what your saying we should turn the other cheek when a broker does something fishy. lmao im done

EDIT: btw i only reported this guy claim because he have evidence to back up his claim. i also seen these off quotes from finpro trading, coinexx at the same time and i have live account with both. HyperScalper your pretty smart when it comes to recording spreads, you can see for yourself if you have the time

im a big fan of finpro trading and coinexx im all in im just a little more caution now

5837

OK, it seems to me the trader is the one who was doing “fishy” things in this
allegation.

Yes, I do record spreads and there are plenty of situations around rollover
time when spreads are untradable. In general, though, I don’t see many
anomalies.

In MT4/MT5 based retail forex, we are not given any information on the
instantaneous Market Liquidity; as we don’t get any Market Depth information.
So I think it’s best to assume there is not “infinite” liquidity; far from it, so
most responsible traders wouldn’t try to control 200 lots in a single position
(using near maximum leverage) and expect smooth sailing all the time…

[EDIT] let’s say it was EUR/USD which is $10 / pip for 1 lot. So that’s $2000
per pip for 200 lots, and if your account had $10k, it would be blown out
with negative equity, on less than a 5 PIP market price adversity, isn’t that right?
5 PIPs x $2000/pip = $10,000 ? I don’t know; I’d never get close to that myself.

hyperscalper

1 Like
5838

yes i agree the guy was over leverage on 210 lots also he did withdrew some money causing the account to go into margin call quicker, the real beef he have is why did those spikes happen when no other broker have those spikes and that same EA was not stop out on demo and other broker.

Note me and some of my trader friends had the same issue with tradersway as we made large amount of money for some strange reason these huge spikes would happen that no other broker on earth had

5839

I would be careful with Coinexx. Crazy whipping action. Screen shot is Forex.com vs Coinexx GBPJPY. It was pretty ridiculous.

https://gyazo.com/b264088d264af10f5460ad178be01831

EDIT: Spread also shot up to 20-30pips during this period.

1 Like
5840

I cannot attest to the validity of the aforementioned claims regarding spread manipulation by Coinexx. What I do know, is that, trading that kind of volume, with that kind of leverage, is /extremely/ high-risk. Anyone that is trading this way should plan for big losses from time-to-time, and they certainly should not leave their open positions unattended.

We should not be too quick to pass judgment beyond what can be proven as fact, especially as our options for foreign brokers are limited. That does not mean that we should just ignore what people say regarding their experiences, but we have to choose our battles wisely. Drawing unwanted attention by regulator groups could further-limit our options as traders, so it is important that we remain objective toward all claims without jumping to conclusions and that we examine the evidence intelligently.

In this case, the evidence and claims are questionable. The circumstances give further credence to the possibility that this was an isolated event; unfortunate, but plausible. A reasonable cause for the sudden spikes, aside from the volatility that was brought on by the news, could be as described in the response that was given by Coinexx – limited liquidity at that time.

To publicly claim spread manipulation in such a case is irresponsible and unfair, in my opinion.

That being said, we should always keep an eye out for all things, good and bad, and we should continue sharing our experiences with these brokers and documenting them so that we can all benefit.

5841

just like you have your opinion the trader who claim spread manipulation has his opinion, that doesn’t make it fact or a lie they are personal opinions from there experience

5842

WHAT IS “THE PRICE” ?

Everyone should realize, that “the price” usually shown
on candlestick charts is most likely to be the BID price.
On some platforms you may be able to choose other
price calculations for your Candles…

For me, when I want to know “the price” I try to use the
MID price ( (Bid + Ask) /2 ) which is also affected by
changes in the inside market Bid/Ask spread, of course…

Personally, I don’t use broker stops because "false stopouts"
are generated when Bid/Ask spreads widen, at Rollover
for example…

In a “Long” position, your Stop Loss is measured against the
instantaneous BID price, because that is the Price at which
you would need to SELL your Long position to get Flat…

In a "Short position, your Stop Loss is measured against
the instantaneous ASK (OFFER) price, since that is the Price
at which you would need to BUY to get Flat…

In both cases, you must execute the trade NOW, and
at this “Market Price”… which I would regard as a
"spurious Stop Out"… this pathological situation can exist
on News Events, Rollover, or just as a result of a Data
Transmission error or a Broker Risk Evaluation algorithm,
and “poof” you can be presented with an unpleasant Stop Out.

hyperscalper

5843

like i said im a big fan of coinexx and finpro trading but im also not a blind trader. either way i hope this PR works out for us traders in the future

5844

I am with SmallPaul and I guess people here just didn’t read that post carefully.
The trader had 6 positions at that time, and all of them had average 70 PIPs loss.
If you had GBPUSD news came out and you got 70 pip loss on GBPUSD, that seemed reasonable. But you got all of 6 positions each of them for 70 pips loss, that was impossible.
Say if you got a spike on GBPUSD,why did you get all 6 positions each 70 pips spike? The only thing I can imagine, was the broker closed all of his positions due to margin call, but the other 5 positions were not closed at market prices. This is extremely abnormal.

1 Like
5845

I have mentioned it once before here, be extra cautious with finpro, turnkey and coinexx (those that use the same liquidity providers) i had many weird issues with finpro’s quoting and other issues many times, I just didn’t want to bother simply because its just too little money for me to go crazy about it. I debated to even come out and say it here, but i do appreciate this threads and its effort trying to assist US traders.

5846

My remarks apply ONLY to the 28 Major Forex pairs, not to any other
instruments… I pay a lot of attention to the quality of the pricing; and have
not seen “showstoppers” of this nature.

I have complained to FinPro and others about ridiculous spreads
which occur on daily Forex Rollover, and during most of that
21:00 GMT hour… Other than that issue, although there are momentary
wider spreads during times when that would be expected, such as
major News events, I haven’t seen problems that are out of the usual…

hyperscalper