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.
An effortless way that you can prevent your hair from falling out is to massage your scalp for five minutes each day. Undertaking this assists blood movement to the scalp, which is crucial in preventing hair loss. It is greatest for you to massage your…
[…]we prefer to honor lots of other internet web pages on the internet, even if they arent linked to us, by linking to them. Beneath are some webpages worth checking out[…]
[…]Wonderful story, reckoned we could combine several unrelated data, nonetheless genuinely worth taking a search, whoa did a single find out about Mid East has got more problerms as well […]
[…]although sites we backlink to beneath are considerably not associated to ours, we really feel they may be in fact really worth a go as a result of, so possess a look[…]
[…]we like to honor many other world-wide-web websites around the internet, even if they arent linked to us, by linking to them. Beneath are some webpages really worth checking out[…]
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.
ترمیم مو به بهترین روش برای آقایان و ب…
An effortless way that you can prevent your hair from falling out is to massage your scalp for five minutes each day. Undertaking this assists blood movement to the scalp, which is crucial in preventing hair loss. It is greatest for you to massage your…
urgent care los angeles
[…]The facts mentioned inside the report are some of the top obtainable […]
male p spot
[…]we prefer to honor lots of other internet web pages on the internet, even if they arent linked to us, by linking to them. Beneath are some webpages worth checking out[…]
بهترین وب سایت ایرانی
You made some wonderful details there. I did a lookup on the subject matter and identified most folks will concur with your site.
lightweight 7 oz traditional karate uniform
[…]Wonderful story, reckoned we could combine several unrelated data, nonetheless genuinely worth taking a search, whoa did a single find out about Mid East has got more problerms as well […]
download free games
[…]please pay a visit to the web sites we follow, which includes this one particular, because it represents our picks in the web[…]
Download Free Music
[…]very few internet sites that happen to be detailed below, from our point of view are undoubtedly well really worth checking out[…]
revize zdvihacich zarizeni
[…]although sites we backlink to beneath are considerably not associated to ours, we really feel they may be in fact really worth a go as a result of, so possess a look[…]
container drayage
[…]The info talked about inside the write-up are several of the top readily available […]
ノロウイルス
[…]we like to honor many other world-wide-web websites around the internet, even if they arent linked to us, by linking to them. Beneath are some webpages really worth checking out[…]
Tam Coc Ninh Binh
[…]usually posts some incredibly exciting stuff like this. If youre new to this site[…]
stand up bag with ziplock
[…]here are some links to websites that we link to since we feel they’re really worth visiting[…]
Blend City 42
[…]one of our visitors not long ago encouraged the following website[…]
Download Free Gucci Mane Mixtapes
[…]check below, are some absolutely unrelated internet websites to ours, even so, they may be most trustworthy sources that we use[…]
Download Free Kevin Gates Mixtapes
[…]Sites of interest we’ve a link to[…]