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A fairness on futures and Forex industry

(2007-08-13 09:16:37) 下一个

http://www.elitetrader.com/vb/showthread.php?s=&threadid=93913&perpage=6&pagenumber=1

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You are incorrect. The OP is asking about exchange-traded e-mini contracts. Except for execution, clearing and platform fees, neither introducing brokers nor FCMs make or lose money when traders lose or win. This may be true of OTC forex where the introducing broker is taking the other side of your trade; however, for exchange-traded products the counterparty is always another trader.

As was mentioned on your other thread, there are no "specialists" in futures (i.e., those with a role similar to specialists on the NYSE). I believe futures are the most fair and transparent markets out there. Retail forex isn't very fair, and it's definitely not transparent.

In retail forex, you are trading a virtual market created by the broker

I think you might have misunderstood what trademaven told you. It's definitely true that some FCMs and introducing brokers also operate proprietary trading accounts. However, that activity and those accounts have nothing to do with any retail trading activity that goes through their firm.

FCMs are required by law to hold their customers' funds in accounts that are segregated from the firm's operating capital. On exchange-traded products there is no bucketing of trades as occurs with retail forex. Futures brokers are simply a conduit; they are never a specific counterparty to their customers' trades (they could be an incidental counterparty, just the same as any other trader in the world could be in that same market).

Disreputable brokers might churn your account (if it's managed by them), give you bad advice, provide poor service, or overcharge for commissions and software, but they're not doing what you think they're doing.

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