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TheEconomist
2006.12.27 19:22
Gone are the days when retail forex was at beginnings… With a huge base of potential mini account customers
who believed stock market rules apply in forex too, the few brokerages that started the mini forex mania got
rich from the psychological drawbacks of their clients. Being taught to tighten the stops the great part of their
losses entered brokers pockets by the spread mechanism.
Then there came in automated platforms. With all kind of sophisticated indicators and expert advisors, they lead to the same conclusion of old Greenspan: “The probability of knowing which way the exchange rate is going is no different than the outcome of a flip of a coin” We did everything we could. Joined dozens of forums, spoke with everybody, spent hundreds of hours programming. And you can’t expect all newbies to be stupid. Many of them will hang on the forums and do their homework and then choose well their broker. Eventually they come to the conclusion that the entire principle is wrong. We never wanted to speculate. We all wanted arbitrage. Leveraged arbitrage. The finance holy grail. Some of us studied finance. We all watched tv. We have seen the fancy trading rooms with all those 45-degree sloped monitors, Reuters & Telerate stations. We knew “the big guys” perform arbitrage. Yet we never had the courage to say “Hey, we want this too”. How does it come on all the website commercials with “our state of the art trading platform” we see pictures with traders watching professional platforms? I have a $500 account. I want to buy from bank A EURUSD with 1.3301 and sell it to bank B with 1.3302 at 200 leverage. You do it, I want that too. I’m not stupid to bet a lot of cash on some moving average intersections , Bollinger Band penetrations or other indicators. Anything can happen on the market. And its not your money. It’s mine. Now I’m not saying “I want multiple bank access”. But guys, 3 pips on EURUSD or even 4 as I have seen at some brokers? And why this stuff with 5 , 7 or 10 pips on other pairs? I need a chance to perform some arb here . If the prices misalign, let me get this. You are the provider, you get your spread. I want my profit too. Don’t sink my profit in your spreads. With 0.5 – 1.5 pips you could do fine. You win, I win. I can’t win, very soon you won’t be able to pay the salaries. With these nowadays spreads, you keep your spread, I don’t trade with any of you (or I could speculate once a week and you won’t earn a dime with the 3 pip spread). With real interbank spread I could win and trade many times a day. And would be a fair business. I win, you win. There were a few brokerages on the market at the end of the ‘90s. Now I don’t have enough fingers and toes to count them. Your Sells Manager already knows it’s not working like some years ago. This is why. And it’s going worse, every month new brokerages appear like mushrooms after rain. Like in a non-cooperative game, the optimal solution is the absurd one. All brokers keep their spreads and sells go down. Or you could lower the spreads and become real partners of your clients and every of you gets to keep its share of the market. Isn’t this fair enough? The idea “We get the spread, we don't give a damn if you were right or not” no longer applies. The right way or the highway, guys! |
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One of the servers, on which the client terminals and Expert Advisors of the Championship Participants are working, failed last Saturday. For this reason 20 Expert Advisors did not work on Monday. All Expert Advisors have become able to continue their competition by 12 a.m. on Tuesday. |
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forexspot
2007.08.03 13:26
TheEconomist wrote: Gone are the days when retail forex was at beginnings… With a huge base of potential mini account customers who believed stock market rules apply in forex too, the few brokerages that started the mini forex mania got rich from the psychological drawbacks of their clients. Being taught to tighten the stops the great part of their losses entered brokers pockets by the spread mechanism. Then there came in automated platforms. With all kind of sophisticated indicators and expert advisors, they lead to the same conclusion of old Greenspan: “The probability of knowing which way the exchange rate is going is no different than the outcome of a flip of a coin” We did everything we could. Joined dozens of forums, spoke with everybody, spent hundreds of hours programming. And you can’t expect all newbies to be stupid. Many of them will hang on the forums and do their homework and then choose well their broker. Eventually they come to the conclusion that the entire principle is wrong. We never wanted to speculate. We all wanted arbitrage. Leveraged arbitrage. The finance holy grail. Some of us studied finance. We all watched tv. We have seen the fancy trading rooms with all those 45-degree sloped monitors, Reuters & Telerate stations. We knew “the big guys” perform arbitrage. Yet we never had the courage to say “Hey, we want this too”. How does it come on all the website commercials with “our state of the art trading platform” we see pictures with traders watching professional platforms? I have a $500 account. I want to buy from bank A EURUSD with 1.3301 and sell it to bank B with 1.3302 at 200 leverage. You do it, I want that too. I’m not stupid to bet a lot of cash on some moving average intersections , Bollinger Band penetrations or other indicators. Anything can happen on the market. And its not your money. It’s mine. Now I’m not saying “I want multiple bank access”. But guys, 3 pips on EURUSD or even 4 as I have seen at some brokers? And why this stuff with 5 , 7 or 10 pips on other pairs? I need a chance to perform some arb here . If the prices misalign, let me get this. You are the provider, you get your spread. I want my profit too. Don’t sink my profit in your spreads. With 0.5 – 1.5 pips you could do fine. You win, I win. I can’t win, very soon you won’t be able to pay the salaries. With these nowadays spreads, you keep your spread, I don’t trade with any of you (or I could speculate once a week and you won’t earn a dime with the 3 pip spread). With real interbank spread I could win and trade many times a day. And would be a fair business. I win, you win. There were a few brokerages on the market at the end of the ‘90s. Now I don’t have enough fingers and toes to count them. Your Sells Manager already knows it’s not working like some years ago. This is why. And it’s going worse, every month new brokerages appear like mushrooms after rain. Like in a non-cooperative game, the optimal solution is the absurd one. All brokers keep their spreads and sells go down. Or you could lower the spreads and become real partners of your clients and every of you gets to keep its share of the market. Isn’t this fair enough? The idea “We get the spread, we don't give a damn if you were right or not” no longer applies. The right way or the highway, guys! |
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DxdCn
2007.08.03 14:36
What do you want ? only 0.5~1.5 spread ! 1 ....2.....3.... do not write essay! how about youe EA? finished it ? |
