What exactly are the risks to us regarding KYC documentation? I thought this was more about protecting the brokers from being accused of soliciting U.S. customers?
Iâm with them strictly for the CFDs on individual shares⌠but based on their bank & server locations, they are begging for future problems.
KYC is mostly used to comply with anti-money laundering/anti-terrorism/other crime mitigation requirements, not just for proof of compliance to avoid getting slammed with fines, but to actually help to prevent those things.
However, some customers do not like handing over private information, especially in the case of an off-shore entity that could be using or selling that information for who knows what. Some customers may deem it as a hassle or extra burden, as well. There are also a small minority that prefer to keep their privacy, especially those in the crypto community.
FXChoice disabled withdrawals by wire transfer since Feb 8th 2019, there has been a bit of discussion over this for the past month or so on this thread.
true, though at least with the derivative platforms for bitcoin its a maker taker rebate system so I can trade futures and reduce it to 5% fee vs 15 % taker fee on both sides with perpetual swap. The one good thing is I donât have to deal with spread and a random spread, its just 25 cents. But the leverage isnât as good as coinexxâs so Iâ m trying to use coinexx for a lot of things. FX choice and coinexx arenât really worthwhiel for actual bitcoin trading, however.
Yeah, Iâve yet to find an FX broker that offers agreeable conditions for cryptocurrency trading, that would be suitable for my trading style. Regarding the 15% taker fee â that is actually only the case when using maximum leverage, fortunately. Personally, I think that the taker fees are still too much. I can generally get away with using limit orders when exiting a trade while trading crypto on the exchange, but I usually prefer market orders, especially when entering a trade.
But, any relatively decent crypto exchange that offers leverage has shied away from the idea of entertaining US traders, for some of the same reasons that FX brokers do, so there is the added risk of exposure that comes with trading on those exchanges. That, and, as you say, the leverage for crypto trading via an exchange has yet to really get interesting, in my opinion, especially for more exotic or volatile pairs.
Personally, I would rather trade cryptocurrency, if I could, but I have gravitated towards FX because the conditions currently seem more favorable for traders. Perhaps that may change someday, but it may be a long time before the liquidity is comparable.
They disabled withdrawals for smaller clients. Larger clients are a different story.
This article, which appeared today in Finance Magnates, gives a pretty good synopsis of the current state of the retail forex brokerage industry worldwide.
Itâs written from the perspective of the mainstream (Ăźber-regulated, Nanny-State) forex brokerage industry, because thatâs the industry that Finance Magnates caters to. But, the article is factually correct (as near as I can determine), although the bias of the author (Victor Golovtchenko) is evident.
It might be worth your while to spend a couple of minutes reading this article.
Your comments, pro and con, are welcome here, as always.
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So brokers that say they are ECN might not be? Perhaps FinPro sends order flow to Turnkey and Turnkey send order flow to Finpro (Coinexx)?
âRISKYâ OFFSHORE BROKERS
Regarding Cliffâs posting of the above article on âSTPâ model,
thanks very much ! As an admitted ârisk hungry clientâ Iâll continue
to seek high leverages, mainly because I like to see âsmall
acorns growâ from seed, and promote small clients in their
ability to grow equity with limited resources.
I think weâre unanimous in our opposition to "the nanny state"
presuming to help protect ourselves, from ourselves⌠BUT, Iâd
like to see a âretail professional qualificationâ exemption which
permits traders who trade on actual âdataâ and can show a track
record of success, to trade with higher leverage.
I did a video on using a âdata centered approachâ using
Currency Analysis to choose high probability outcomes⌠Iâm
a believer in âanalyzing the hell out of every tradeâ⌠LOL
But if youâre getting the pricing you are expecting; it makes
little difference whether the broker is STP or otherwise. And
Commissions are an at least equal concern. The regulated
brokers have to charge higher commissions to pay fees to
the ânannyâ regulatory organizations⌠Would you rather pay
$2 per round turn, or $10 toward the regulators ??
hyperscalper
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what is considered a larger vs smaller client? 5 figure account? 6? 7?
COINEXX SYSTEM ISSUE ON FOMC?
I think this is the first issue Iâve seen on Coinexx, with
a freeze for a while on AUD/USD with FOMC rate
statement. [EDIT] Maybe as much as 10 minutes? Hard to
say but there is a 15 minute data gap on a 1 minute
chart⌠[EDIT2] Yeah, bar at 20:54 GMT+3 server time
and next minute bar at 21:10 in market data feed.
[EDIT3] Same issue from U.S. as from my Amsterdam
server MT4 instances.
[EDIT4] USD big miss on expectations, even though
interest rates held same; with statement that there would
be no more rises this year⌠pessimistic for USD
I did not see the issue on a concurrently running MT4
instance on Dukascopy on the same networkâŚ
hyperscalper
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Coinexxx is a no go for me anymore. Went offline seconds after FOMC for 11 minutes, had open a few positions only but unnerving as f*&k.
You can see the slippage here on the 5m candle
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EUR/USD on Coinexx just gapped up, same type of thing. Scary if your on the wrong side of those moves! If I take Coinexx and FXBrew off my list, Turnkey is really all that remains for me. I canât stand the spreads and fees at Tradersway, not to mention their stop out levels donât work for me. This is getting more difficult by the minute.
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Pretty sure Coinexx uses Turnkey
COINEXX ISSUE ON FOMC
Yes, I reported this above, and left them a support
note.
Iâm not taking this too badly; SH**T HAPPENS and itâs
the first issue Iâve noticed.
Donât let the Perfect be the enemy of the Good, comrades !!! 
hyperscalper
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I can confirm the exact same historical data gap on a
Turnkey Forex account, as appears at Coinexx. SoâŚ
good guess ??
hyperscalper
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Trading thru FOMC is a crap shoot and as a rule i usually stay away. Its just unnerving being locked out of the platform.
I suspect if you got burned on that trade due to the outage Coinexx will reverse the loss. I mean⌠they have to right? If they want to stay in business?
Starting to deal with the always wonderful DST. Coinexx changed from GMT+2 to GMT+3 when the U.S. did. I think FxChoice is this weekend.
I need a mental refresher regarding backtesting on GMT+2/+3 servers. London open is always 9:00/10:00 on GMT+2/+3 servers correct? So when backtesting; if you are using hourly bars to anchor a strategy you always need to move it one hour forward in the spring for tests correct? There arenât any GMT+2/+3 brokers that keep their London open always at 10:00 are there?
And GMT+0 will always have their London open at 7:00 correct? And have 3 Sunday bars. Or have you seen GMT brokers that move their server time one and hour and have only 2 Sunday bars. Just trying to calibrate my memory. Thanks.