What's All Fuss with "Bucket Shops?"

Trying to select a broker. Demo’d FXCM, Oanda, FXPro, FXSol, you name it. I like the brokers that support MT4, but the thing I don’t like about MT4 is the trailing stops only work if the software is loaded. The FXCM platform, trailing stops are server based, and with FXCM you can use MT4 if you want to switch to that and use expert advisors.

I’m a starting out Swing Trader. Want to open a micro account. Not looking at this as a major income source like some. It seems all these complaints with bucket shops like FXCM, etc. seemed to be coming from people that must be day trading frequently and trading on news. If you are doing one trade a week on average, does it really matter if they are a bucket shop or an ECN? Funny you never see a complaint from someone who made money on a trade and accused the broker to any funny business. :slight_smile:

I haven’t come to any conclusions yet, but so far I’ve found the customer service and the platform at FXCM to be the best, especially from a beginners point of view. And I like the fact that if I want to start using MT4 as my platform they have that option too.

Is there a better alternative to FXCM that has a great platform with trailing stops that execute when the platform client software is not loaded? I didn’t like the platform on FXSol where the separate the charting from the trading, the software is quirky. The Java software at Oanda sucks - they don’t even let you graph more than a 1 day interval!

Supposedly 90% of all traders lose money. I would bet the majority of them are people hard up for cash and doing it as a side job, trading frequently. With that high of a percentage no wonder there are so many bad reviews out there from those that lose their money and blame it on the broker. Not to say there isn’t a difference between an ECN and a Bucket Shop, but for more long-term trades for us Swing Traders, wouldn’t someone like FXCM be just fine?

Throw me a bone, please! :slight_smile:

I’ve been looking at Oanda specially since I use a Mac and their platform is Java based. But your ideas got me thinking about FXCM.

Frankly speaking, I’m confused with all the “reviews” out there about both Oanda and FXCM, and if you say FXCM has better customer service, I’ll give it a try.

I think if we’re trading micro accounts, it’s probably best to have 2 accounts with different brokers so that we have a comparative sense of which one at least [I]feels[/I] right.

now ive got a few questions for you ---- are you positive that the MT4 brokers do not execute a trailing stop when your own platform is off — while i use no stops ever, ive never heard this happening before and i know an awful lot of traders out there !

Im checking with other traders and i get yeah and nay answers so while the problem can be corrected by never disconnecting from the brokers server, it is very definitely and interesting piece of information.

how much research have you done on this to verify your claim ?

but to answer your main question — given how you trade it is of absolutely no importance or difference who you choose to use !

mp

are you positive that the MT4 brokers do not execute a trailing stop when your own platform is off

If your MT4 platform is not connected to the brokers
server then the “trailing stop” facility does not work.

But it will log the last stop loss price you reached before
the connection was lost, so if price does reverse there is
a stop loss cushion.

NB. “Trailing stops” do not operate until the trade is in profit.

thnx bunches daydreamer

u and a number of others have increased my learning today, thus chasing away altzheimers for yet another day !

since i never use stops of any kind, i was simply not aware of this situation and appreciate your info muchly !

enjoy and trade well

mp