Since we pointed that their office address was even fake,they “moved” to another place.
this is a google map of their new “address” is this white building their office ?
221A Dominion Road, Auckland 1024, New Zealand
I recommend opening a few accounts. This way you can spread out your risk.
Divisa Capital has great execution and is not overloaded with scalpers like most other brokers.
Good Luck
Hallo moneymanager,
Does it matter how many scalpers a broker has?
All that counts is whether the broker is able to execute your orders (trades + deposit/withdrawals) with the minimum-est of issues. (regardless of ones trading style)
Unless Divisa Capital is the traditional-type market maker…
Cheers
Also if it helps, I am a swing trader.
One key issue you should look at is that you chose a ecn broker, not a market maker. market makers make their own prices and can manipulate your trades. They are always on the other side of your trade (you buy EUR/USD then they SELL this pair to you - so they are trading AGAINST you!!). It is very complicated to understand, but just this point: either ask the broker you want to chose whether he is a mrket maker or ecn or just look whether his currency numbers have four (market maker) or five digits (ecn) behind the comma. If a EUR/USD quote is like 1.31259 you know this is a ecn broker, if it is only 1.3125 it is a market maker who will trade against you!)
So much wrong with this… so much…
On MM vs ECN-like models:
Being a market maker doesn’t automatically mean the broker is taking on market risk for your trades.
Generally, a MM quotes a price to you and you are dealing with them as the principal on your trade. That’s all.
Market makers are trying to profit from capturing the spread (not just marking it up) and often net out their exposure across their client base (ie, you go long, someone else goes short, these trades match off so the market maker deals to both of you and captures the spread between their quoted price.) This kinda thing is also known as ‘internalization’ of orders. Often this net exposure is unbalanced (like more longs than shorts on a pair,) and since clients are trading all the time the imbalance is shifting constantly. To manage this, they trade with banks to offset their market risk. So this isn’t really a ‘they win when you lose’ type deal.
Some (but not all) market makers will selectively choose to take on the market risk of an account. Modern brokers often statistically identify behaviours of bad traders and feel that dealing to them without offsetting their risk is ideal for them. This has zero impact on the client’s trading or the outcome of their trades… it’s just in the backend in how the trade is cleared.
Yes, some brokers are evil and mess around with the quote feed to game their clients. BUT, evil brokers are going to be evil if they are market makers, STP, ECN, etc… the execution model doesn’t make a broker evil or protect you from them being evil. An execution model is just how the broker is operating their business. You should be focusing on warding people away from evil brokers, not market makers.
Plus, in the end, spot forex is a made market. If it’s not your broker making up the quotes, then it’s the prime brokers they work with, or the liquidity providers, or the banks… they all facilitate the exchange of currency while wanting to mitigate their market risk in the process.
As for ECN’s being 5 digit and assuming MM’s are 4 digit… this is very wrong. The decimalization level has nothing to do with the execution style of the broker.
Yes, most ECN-like retail brokers are 5 digits, but most MM’s are now 5 digits too in the spot retail world. But it’s not like that everywhere in the currency trading world:
CME currency futures are 4 digit, and they are an exchange.
EBS uses 4 and 1/2 digits price points (like 1.2520 and 1/2 a pip)
Anyway… The key take away from this is: Evil brokers are to be feared, but they come in all shapes and sizes… being a market maker doesn’t make the broker evil.
Oanda is a good example, they are one of the largest market maker type brokers around, but if you search through the NFA’s BASIC system for regulatory actions against them they come up completely clean, which can’t be said for some popular STP or ECN-like brokers out of the US.
I asked FXEthos for the FSP# again via twitter few day ago, since he still promotes it as a regulated brokerage.
Let’s see if he can show it to us or not
Hello Mr. Larkin and other posters;
I really appreciate your info on brokers. Matter of fact, i have started a practice account with Pepperstone, based on your recommendation. However, the Pepperstone practice account includes a $7.50 commission on each trade, which seems to violate the following statement from BabyPips:
No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are compensated for their services through something called the “bid-ask spread”.
so please let me know if i have misunderstood. I believe that the spread should be sufficient compensation for the broker, and would like to find a way to make this relationship happen.
thanks
the bid/ask spread*your trade size= Pepperstone’s commission. That 7.50$ was the bid/ask spread commission.
Two types of accounts for Pepper:
Standard - no commissions, but spreads are marked up (widened) to cover the broker’s costs.
Razor - has commissions, but spreads are not marked up (untouched) and fed raw from what they are quoted by their liquidity providers and banks.
Pepper doesn’t make anything from the spread on the Razor accounts (no markup) so they gotta charge a commission to process the trade.
If you’d prefer to have no-commissions, you can always go for a Standard account, but the spreads will be wider to compensate the broker. The overall costs will be about the same between the two accounts…
Hope that helps.
EDIT:
Figured I should explain this in a more broker agnostic sense:
Brokers who offer DMA (direct market access) or ECN-style accounts have to charge a commission since they don’t make anything from the spread itself. This is a growing trend we’ll probably only see more of. It means we’ll have much tighter spreads overall (which is awesome) but commissions will be the norm.
The slightly more common way is for the broker to ‘pad’ the spread by marking it up from the quotes they get from their banks. This would be the no-commission model, and here the broker does make revenue from the spread itself so commissions aren’t necessary.
Just watch out, some brokers play the spread game where they artificially lower the spread beyond what’s regularly seen in the market and shift that cost to additional commissions. This makes them rank high on sites like fxintel or other spread monitoring sites, but their total cost is often no better than average (sometimes worse.)
Hi,
I used ODL markets in 2010. When FXCM acquired ODL I became a client of FXCM since Nov 2011.
I had read very bad comments about FXCM, that was one of the reason I chose ODL over FXCM. But when I had to use it any way, I found them to be very professional and reliable. I transferred my balance to FXCM Micro and Trading Station II platform.
I’m still very happy with them. No problems with withdrawals, it’s very quick nowadays. Platform works very well without a single issue so far. I’m a day trader and trade 5 days a week full time. I didn’t find any local stop hunts, not like it with ODL. ODL platform was freezing and they also did local stop hunt. I always compare charts from different brokers, and FXCM charts were always fine.
Sometimes you just have to use it and see I guess. If I was not forced to use FXCM, I would have a different opinion about them.
This is my personal experience even though it sounds like a marketing for FXCM 
I wanted to share it with you all as sometimes reality is different from what you read on internet. Perhaps FXCM had changed a lot.
Just my 2 cents…
thanks for the advice… i just open a new account with fxcm… btw do u deposit ur fund by c.c ?
just my query.
Happy New Year!!!
I use debit card to fund. C.C. is also ok.
Are you new to trading, if so let me offer my advice.
Find a statistical edge.
Study your trading strategy well and find out it’s winning rate and loosing rate. Like 65% winners and 35% looses. You may manually do this on historical charts. Do this for few years. ( I did for more than 10 years). Do it on random years. Find out statistics for each year, they may differ.
Then you know what you are dealing with. You will learn that you need to take every trading signal. You will learn that some will end up as losses while most of them as winners.
Now you will not have doubt or fear as you know your statistical advantage. You will know that there could be better years and worst years. There will be no conflict as your trading plan is simple, you just take your signals, set TP & SL and wait for the market to fill one of them. Don’t try to think what will happen next, as nobody knows it, except those who has enough money to move the market
It will take like 3 years for you to master the market as most of them say.
But you will think that you are better than others and you had captured it before 3 years, as we all do.
Then you will start loosing your accounts, few times. Learning a lesson each time. As it happened to all of us.
Eventually you will mature, will be more disciplined. Understand it’s nothing but trading psychology that matters.
My advise is, find a statistical edge (most difficult part of trading), demo practice it for 6 months until you learn everything about trading and the platform. Then open a real Micro account and further practice it for another 3 years. Real trading is very different. Can’t even compare with Demo trading. You will develop your trading psychology by real trading, it must happen by experience.
I know you will not listen to me, neither did I when I was told the same, 4 years ago here at babypips.
Just my 2 cents…
Yes, of course it matters. There is only so much liquidity, when 100 plus accounts try to trade on the same rate…there will be some issues.
No they are not a market maker. I wish they were…Market making means your trades don’t go to a bank…hence faster execution. Most brokers don’t do this anymore as they all got killed a few years ago when scalpers started hitting the market.
You will be happy will Divisa.
Good luck.
Follow me:
- Hotforex
- FXPro
- FXCM
Those are most well-known broker also good ever feedbacks I seen in plenty websites, and forums,… Also I have tried them and they are good brokers.
Noted thanks
Forex-metal is on of the trustable broker i have come across.I am a full time gold trader under them since 1 year.
I have traded with many different brokers and I finally found the one that is best suited of my style of forex trading. Right now i am actively trading with Octafx, which I find to be trustworthy. I’ve done many thousands of trades with them
The trading conditions used with this broker are incredible especially if you are trading for a short amount of time. It gives its customers good service. It has many benefits such as receiving 30% bonus on top of what you deposit into your trader account. Once you request a withdrawal it normally takes 2 hours to process so it is fairly quickly in that regard too. I would certainly recommend this broker to newcomers and for those who have been trading for sometime. try it out and get familiar with the techniques that should be applied. The minimum deposit with this broker is $5 and you have a choice of opening a micro account or an ECN.
They have processed large deposits and large withdrawals for me in a timely fashion.
so give it a try with octatrader and tell me what you thought about it:)
One trustable broker should be a broker that you can comfortably invest money to it and don’t worry what broker did behind MT4 program and their terms.
I think that the trustable broker should use reliable liquidity providers and have bank accounts in the world’s most authoritative banks.