Educational videos for forex traders who use bucketshops

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Tresor
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Educational videos for forex traders who use bucketshops

Postby Tresor » 13 Dec 2011


Tresor
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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 16 Dec 2011

The guy was banned from the forum at forex factory - how come I am not surprised. Here is his YT channel: http://www.youtube.com/user/EcnJesus?feature=watch

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Re: Educational videos for forex traders who use bucketshops

Postby arjfca » 18 Dec 2011

Video not available anymore

But I do understand the concept. Is there any ways to be protect again these manipulation?

Martin

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 18 Dec 2011

Video not available anymore
MetaQuotes complained about a supposed infringing of their intellectual property rights.

Arguments against IP rights being a valid concept (if it interests you):
http://www.youtube.com/watch?v=NAvbWeivv8o
http://www.youtube.com/watch?v=p3AuTrCq5ws
Is there any ways to be protect again these manipulation?
Do not use market makers. Easier said then done :) Following this advice will be hard if you base yourself on brokers' marketing non-sense: there are a number of market makers who make ECN references in their marketing talk, e.g. we offer ECN like environment, we offer ECN type execution, we offer ECN platform. Who cares for ECN environment or ECN platform if you get internally bucketed.

Instead look for a proper securing of your interest in an agreement with your broker. Here is a list of potentials: http://www.cls-group.com/ABOUT/COMMUNIT ... mbers.aspx and: http://www.cls-group.com/SiteCollection ... 20List.pdf that you might want to explore.

arjfca
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Re: Educational videos for forex traders who use bucketshops

Postby arjfca » 18 Dec 2011

Video not available anymore
MetaQuotes complained about a supposed infringing of their intellectual property rights.

Arguments against IP rights being a valid concept (if it interests you):
http://www.youtube.com/watch?v=NAvbWeivv8o
http://www.youtube.com/watch?v=p3AuTrCq5ws
Is there any ways to be protect again these manipulation?
Do not use market makers. Easier said then done :) Following this advice will be hard if you base yourself on brokers' marketing non-sense: there are a number of market makers who make ECN references in their marketing talk, e.g. we offer ECN like environment, we offer ECN type execution, we offer ECN platform. Who cares for ECN environment or ECN platform if you get internally bucketed.

Instead look for a proper securing of your interest in an agreement with your broker. Here is a list of potentials: http://www.cls-group.com/ABOUT/COMMUNIT ... mbers.aspx and: http://www.cls-group.com/SiteCollection ... 20List.pdf that you might want to explore.
My broker is IB Interactive Broker and I don't found it in your list. Should I be concerned?
Martin

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 18 Dec 2011

My broker is IB Interactive Broker and I don't found it in your list.
There is Timber Hill Europe AG on the list (Timber is withing IB group of companies). It is probable that your forex trades made via IB are real trades, not video game.

I suspect IB clears through Timber on real forex market (Timber then later cleares through CLS). This is just my opinion. Do not take it for a fact.

Should I be concerned?
This depends on the stress level your body can take.

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Re: Educational videos for forex traders who use bucketshops

Postby arjfca » 18 Dec 2011

Any one had some problem with IB? I did heard bad thing about MT4, Saxo and other bucket chop, but nothing about IB

They have a Canadian Licence and are regulated ( I think at least) by our system. Even that won't protect again crook, but that broker look to be the more honest ( if it could exist) from the ones that I studied.

I did had a bad experience with a Saxo related broker in Australia. The owners did play with customers deposit and flew with the money. Now, they relax in prison and us ( the customers) we rush to replenish our account $

Martin

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 22 Dec 2011


arjfca
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Re: Educational videos for forex traders who use bucketshops

Postby arjfca » 22 Dec 2011

Any one as seen similar problem with IB? Since I'm in demo, I don't see that

MT

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 22 Dec 2011

Since I'm in demo, I don't see that
You are using a frontend. 100% of users here use brokers' frontends. You don't see it because you can't see it.

What you see on the videos are backend's capabilities, not frontend's ones.

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Re: Educational videos for forex traders who use bucketshops

Postby arjfca » 22 Dec 2011

Tresor, my English is not that good

Frontend, Backend ?

Do you mean that the video was taken from inside broker house? The guy that took the video was controlling the market to the disadvantage of their customers

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 22 Dec 2011

Do you mean that the video was taken from inside broker house?
Yes. This is what the videos show. The guy is working for an MT4 broker.
The guy that took the video was controlling the market to the disadvantage of their customers
He showed tools (working real-time) that are built-in MT4 which dishonest brokers can use to screw MT4 traders. This the first time that I am aware of that such a proof was released to the public.

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Re: Educational videos for forex traders who use bucketshops

Postby JoshM » 24 Dec 2011

Do not use market makers. Easier said then done :) Following this advice will be hard if you base yourself on brokers' marketing non-sense: there are a number of market makers who make ECN references in their marketing talk, e.g. we offer ECN like environment, we offer ECN type execution, we offer ECN platform. Who cares for ECN environment or ECN platform if you get internally bucketed.

Instead look for a proper securing of your interest in an agreement with your broker. Here is a list of potentials: http://www.cls-group.com/ABOUT/COMMUNIT ... mbers.aspx and: http://www.cls-group.com/SiteCollection ... 20List.pdf that you might want to explore.
Thanks for your insightful posts Tresor. :) If you don't mind, I'd like to hear your take on these additional questions:

As I understand it, you're saying that brokers that are not on that list, aren't executing the customers' orders with real trades, but settle them in-house? (i.e. offset it against other customers?) (I'm assuming here that a forex market maker doesn't want to hold a directional position resulting from executing the order of a customer)

Do you know of another organization/company like CLS? (They claim on their website that they are the biggest, suggesting that there are more, but I couldn't find these on Google.)


Another thing that for a while I'm wondering about (and perhaps someone here knows), is why the DOM in forex is so 'tidy', for example:
screenshot.177.png
Example of tidy Forex DOM
(29.14 KiB) Downloaded 1282 times
If I assume the bid and ask sizes in the DOM aren't rounded by MultiCharts, then I'm wondering why these sizes are so neat in millions and 500k's, instead of a bid size of for example 541k or 783k, what you would expect with a broker for small traders.

Thanks for any insights,

Regards,
Josh

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 24 Dec 2011

As I understand it, you're saying that brokers that are not on that list, aren't executing the customers' orders with real trades, but settle them in-house?
Not necessarily. A broker that is not big enough to become a direct client of CLS may choose a bank that is from the list to clear its customers' orders. CLS direct clients (prime brokers) are allowed to act as clearing houses for smaller players.
Do you know of another organization/company like CLS?
No.
If I assume the bid and ask sizes in the DOM aren't rounded by MultiCharts, then I'm wondering why these sizes are so neat in millions and 500k's, instead of a bid size of for example 541k or 783k, what you would expect with a broker for small traders.
This might have something to do with the smallest tradable ticket allowed on the real market. Probably only 100k is the smallest allowed unit.

The above if true does not explain 5k in buy column of your picture.

I read MTB - client agreement; someone posted it on some forum. My impression was MBT is a market maker.

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 04 Aug 2012

Do you know of another organization/company like CLS? (They claim on their website that they are the biggest, suggesting that there are more, but I couldn't find these on Google.)
1. A recent find: http://www.lchclearnet.com/foreign_exchange/ They seem to clear only forwards (not spots).

2. Look at the fees charged to members / clients of LCH: http://www.lchclearnet.com/foreign_exchange/fees.asp *- these fees are tens times lower then fees applied to individual traders by the so called ECN brokers: http://www.100forexbrokers.com/stp-ecn-brokers ** and from my understanding forwards are even more risky (costly?) to clear than spots.

* in millions (probably one side)
* in 100k round turn

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Re: Educational videos for forex traders who use bucketshops

Postby t-rader » 04 Aug 2012

Do you mean that the video was taken from inside broker house?
Yes. This is what the videos show. The guy is working for an MT4 broker.
The guy that took the video was controlling the market to the disadvantage of their customers
He showed tools (working real-time) that are built-in MT4 which dishonest brokers can use to screw MT4 traders. This the first time that I am aware of that such a proof was released to the public.
I was aware of this, but never seen actual video's of it so its a shame the videos are gone and I never got to see them.

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Re: Educational videos for forex traders who use bucketshops

Postby Tresor » 05 Aug 2012

Just google ''ECNjesus torrent'' and you'll find the downloadable videos.


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