If you haven’t read FT Alphaville‘s deconstruction of the Forex trading business yet, it simply cannot be missed. Eagle-eyed currency trader (and TRB pal) Kevin Hughes shot this over to me and I almost couldn’t believe some of the disclosures. Note, I said almost couldn’t believe- I didn’t exactly roll into town on the back of a turnip truck.
I’ll give you a taste and then send you over. Suffice it to say, your currency broker is not only NOT your friend, he is actually your adversary…
Go to any of these sites — FXCM.com, Global Futures & Forex, Oanda.com, etc — and you will get the distinct impression that you are dealing with a warm-hearted, professional broker, where your interests are paramount.
But in many cases the exact opposite is the case. Note this line from the Gain prospectus:
“The majority of our revenue is derived from our activities as a market-maker to our retail customers, where we act as the counterparty to our customers’ trades.”
And there’s much more.
There’s nothing inherently wrong with market-making but it seems as though the FX platforms make nothing until their customers lose. This is a Vegas relationship without the lodging or dining or Celine. There appears to be nothing “agency” happening here, only “principal” trading against the rook (which would be you). I don’t believe that many amateur players who are plunking down cash truly understand this.
The jaded among us and professional currency traders like Kevin have known about this business model for some time. I’m surprised that these companies would risk going public in light of having to make disclosures like these.
CCTV Camera Professionals is a immediate supplier of safety cameras, online video surveillance programs, and CCTV equipment. We offer analog CCTV cameras, Hd stability cameras, IP cameras, and full video surveillance techniques throughout the world.
[…]Wonderful story, reckoned we could combine some unrelated information, nevertheless truly really worth taking a appear, whoa did one find out about Mid East has got far more problerms at the same time […]
[…]Wonderful story, reckoned we could combine a handful of unrelated data, nonetheless actually really worth taking a appear, whoa did a single learn about Mid East has got much more problerms too […]
[…]although internet websites we backlink to beneath are considerably not related to ours, we feel they are in fact really worth a go via, so possess a look[…]
It¡¦s in reality a wonderful and helpful piece of details. I¡¦m satisfied that you simply shared this useful information with us. Remember to hold us up to day like this. Many thanks for sharing.
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
glass sex dildo
[…]usually posts some incredibly fascinating stuff like this. If youre new to this site[…]
adam and eve
[…]check beneath, are some totally unrelated internet sites to ours, having said that, they may be most trustworthy sources that we use[…]
نصب و آموزش و اجرای دوربین مداربسته
CCTV Camera Professionals is a immediate supplier of safety cameras, online video surveillance programs, and CCTV equipment. We offer analog CCTV cameras, Hd stability cameras, IP cameras, and full video surveillance techniques throughout the world.
Anal toys
[…]check beneath, are some entirely unrelated sites to ours, nonetheless, they’re most trustworthy sources that we use[…]
Cock ring
[…]Wonderful story, reckoned we could combine some unrelated information, nevertheless truly really worth taking a appear, whoa did one find out about Mid East has got far more problerms at the same time […]
bangal ka jadu
[…]Here is a great Blog You may Locate Interesting that we Encourage You[…]
driving tips
[…]Wonderful story, reckoned we could combine a handful of unrelated data, nonetheless actually really worth taking a appear, whoa did a single learn about Mid East has got much more problerms too […]
adidas heavyweight elite karate uniform
[…]although internet websites we backlink to beneath are considerably not related to ours, we feel they are in fact really worth a go via, so possess a look[…]
G Rabbit Vibrator
[…]here are some links to sites that we link to due to the fact we think they are worth visiting[…]
fermenting
[…]here are some links to internet sites that we link to mainly because we believe they’re really worth visiting[…]
american whopper 8 vibrating dong with harness
[…]usually posts some pretty intriguing stuff like this. If you are new to this site[…]
naughty sex games
[…]please stop by the sites we follow, such as this a single, because it represents our picks from the web[…]
anal sex
[…]one of our guests lately recommended the following website[…]
وکیل پایه یک و مشاور حقوقی شما
It¡¦s in reality a wonderful and helpful piece of details. I¡¦m satisfied that you simply shared this useful information with us. Remember to hold us up to day like this. Many thanks for sharing.
adammale.com
[…]Here is an excellent Blog You might Uncover Exciting that we Encourage You[…]