!!!read This!!!

[forexflash]

The following is a notice I got from one of my brokers in which all is exposed. After you read this, you will have an idea of what brokers actually do but in any case I will translate the paragraphs into simple words.

This is an annual notice from the broker:

“INTERBANK FX, LLC - PRIVACY NOTICE
Interbank FX is a registered Futures Commission Merchant and is regulated by both the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). As part of the NFA's ongoing requirements, Interbank FX is required to provide customers with information regarding the NFA's Background Affiliation Status Information Center (BASIC System) and our firms Privacy Policy on an annual basis. To learn more about the NFA BASIC System, you may visit the following website: …

Further down you find this…

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. INTERBANK FX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, INTERBANK FX, LLC'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS INTERBANK FX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES INTERBANK FX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANK FX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.
IF INTERBANK FX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANK FX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANK FX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANK FX, LLC OR ANY OF ITS SOLICITORS.
- The IBFX Team”

As you can see, this is a registered and controlled US broker, all is legal here. So, wherever they do to trade against you is legal. Now, let´s brake down the whole thing…

“THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE.”

Most brokers people use are intermediaries, this means you are not trading in the real market (exchange market),

“INTERBANK FX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY.”

This means you are actually trading within the broker´s system.

“AS A RESULT, INTERBANK FX, LLC'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS INTERBANK FX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES INTERBANK FX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANK FX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.”

This means that the prices they present to you in your platform are not the real current prices; they are actually manipulated and calculated in the most suitable manner in favor of the broker. You must understand that they are there to take your money. In fact, they have a window of up to 250 pips to work with (I know this as a fact). This also means, that the charts and prices you get are the ones constructed by their platform software calculating every single trade, balance, equity, free margin, used margin, lots, Stop losses, Take Profit, etc. In addition, their software and prices are “ahead of time” in the market relative to you because they know the price way before you and have the advantage to do all this to benefit the broker (intermediary). You must be wondering, but I see that the prices are very similar from broker to broker and from account to another account. Not so, to the eye is, but to an expert eye you find the differences. Some of these are time delays, server disconnections, re quotes, sudden volatility, price freeze, on top you get system access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. These are all different ways to manipulate the price so it goes against you 90% of the time you trade. Eventually is you are in the right market trend the broker has to give up and give it to you. The problem is that their window is so great (250 pips in normal market conditions) that they have many opportunities to take the client´s money. Remember, they are telling you, the broker “MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.”

“IF INTERBANK FX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANK FX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANK FX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANK FX, LLC OR ANY OF ITS SOLICITORS.”

Plain and simple, they ALWAYS trade against you. It is only when the market´s trend is so strong in one direction that they have to give up some trades. Of course there are other factors that make people lose the money trading. Greed, fear, and other psychological factors affect the way you trade and they are all used by the broker´s software. As the notice says, you must not believe in any case the price they are showing you in your platform or the indicators.

[traders89]

Bonjour à tous

Exactly the same with FXDD

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. FXDD IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, FXDD’S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS FXDD ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES FXDD OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE ABD FXDD MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.
IF FXDD ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT FXDD MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE FXDD ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM FXDD OR ANY OF ITS SOLICITORS.

It would be best to have a demo platform and a live platform to see if your live account is not manipulate by the broker.
Right!?

[scorpion]

I think that is not a completed story. NFA had received a notice that the Commodity Futures Trading Commission has approved amendments to the disclosure section of the Interpretive Notice entitled "Forex Transactions." The amendments became effective on June 1, 2008. I guess NFA and CFTC know exactly what forex brokers are doing. All of them act as counter-parties. It's absolutely OK if they hedge your orders with banks. Most regulated forex brokers often hedge your orders. That means they won't care if you make a lot of money from them, because they have hedged all their risks with banks. In turn, the banks forward the risks to central banks. So I think it's safe to assume that most of the money you win is a central bank's loss, or vice versa.

Hotspot FX's risk disclosure continues with:

ALTHOUGH HOTSPOT FXr IS THE COUNTERPARTY TO EACH OF YOUR TRADES, HOTSPOT FXr DOES NOT OPERATE A TRADING DESK. EFFECTIVELY, HOTSPOT FXr AVOIDS RISK TO ITSELF BY INSTANTANEOUSLY OFFSETTING THE TRADES AND POSITIONS IT ENTERS INTO WITH YOU WITH BANK WITH BANK MARKET MAKERS AND/OR OTHER CLIENTS. AS A RESULT, HOTSPOT FXr DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE. RATHER, HOTSPOT FXr EARNS COMMISSIONS ON EACH TRADE IT ENTERS INTO WITH YOU. THE AMOUNT OF COMMISSIONS CHARGED IS DISCLOSED ON THE COMMISSION SCHEDULES.


Gain Capital's risk disclosure continues with:

For Gain Capital:

IF GAIN CAPITAL ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT GAIN CAPITAL MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE GAIN CAPITAL ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM GAIN CAPITAL OR ANY OF ITS SOLICITORS.

[forexflash]

Well, there is a solution to this, im doing this for a while, and it is a great
strategy for taking the money from brokers. Only problem with this ea is that
you need a little bigger account, or you need a micro loots with big leverage.
Forget the backtesting, it will loose big time!
I do this live, and it is great, belive me!

[traders89]

Bonjour Forexflash

And how does it work !?

[forexflash]

It is bassicaly a grid EA, you can adjust everything, TP,SL, number of pending orders, etc..... By default it puts 2 buy stops, and 2 sell stops around current price, at 10 pips target increment..... Then when one of the targets was hit, EA waits untill trigered order goes into profit, or price hit another target... Every time when that happens orders are changed by
used rules.... If the hited target goes into profit, EA closes all pending orders,
and opens another set of PO. You can not loose as long you have enough money in your account... It is very small possibility that the price will go up and down from 1 PO to another PO, triggering all of PO, but if that happensVEA will open another set of incremented PO to cover price action, and that is a reason why you must have enough money to use it......but that scenario
never happen to me for the last 3 months.....

This is my trades from the last night, 9 trades each about 5 to 8 dollars.
And this is the bad day!
Maybe this will help you to understand the EA....if not EA is not locked,
so you can open it with meta editor, and there you will see explanation of each lines that is user adjustable.

I AM NOT TELLING YOU THAT YOU SHOULD USE THIS ON REAL ACCOUNT!
MAKE A LIVE FORWARD TEST, FOR BETTER UNDERSTANDING OF EA!!!
BACKTEST ARE USELLES FOR THIS KIND OF EA!!!

[betterworld]

InterbankFX receive complain from NFA, you may check here BASIC Case Summary