Forex Is Chic?
June 8, 2008 by Trader Rich
Here’s one trader’s perspective of what big banks will mean to Forex.
I actually think the development of the big banks coming to Forex is a good thing. They delayed their entry for years because of the "reputational risk" that exists when average joe trader does not like a fill or Trusting Joe lets Shady Jim blow, I mean manage his Forex account, and post nasty things about the dealer. The good thing is that their entry makes Forex chic to a huge number of people who did not know about forex or who were sitting on the fence. Their marketing budgets are much deeper than that of the large FCMs. With more traders coming on board, the clout of retail trading will just get much bigger than the 10% of the daily turnover that we currently represent. I think a thing or two should be said about the "smart money" that is already part of the system. The logic is: smart money -> more operational sophistication -> more safety for investors. Of course, money alone will not be sufficient to make Forex free of Refco-like implosions, but it will make it less likely. Several very well funded private equity firms are equity partners of multiple Forex dealers: Gain Capital: 3i, VantagePoint, Tudor Ventures, Edison Venture Fund, Cross Atlantic Capital Partners, and Blue Rock Capital; FX Solutions: Francisco Partners; Interbank FX: Spectrum Capital; Oanda, GFT, the list goes on. . . most FCMs with $10m or more in adjusted net capital today have private equity money helping them to compete with the likes of DB and Citi. I think it makes it very interesting for all of us going forward.
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Ooops… http://www.chattanoogan.com/articles/article_129638.asp Classic Ponzi Scheme.
Yes, forex is really chic! With the good broker it can make very happy every day.
Pretty much everything depends on the broker if you know what you\’re doing.
Good Trading to all!
When you’re rolling over $3 trillion a day (that’s the daily transaction volume in the Forex field), you’re chic no matter what you do…
Hi,
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John
I’m surprised that these big institutes waited so long before trying to play the game as well.
I hope that this will trigger more competition.
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I guess that automatic translation will not provide very articulate articles, but it will be easier to understand the message.
I hope that I helped…
[quote=Forex Trader]Yes, forex is really chic! With the good broker it can make very happy every day.[/quote]
But where to find a good broker? How do you know it? Teodor
i look for forex trader - a person who trades from his home and he is good at it. currently i already work with such person and his income is based on % of profit he makes for me. the money is in my forex account of course. where could i find someone else who could do the same - i want to have 3 people doing this, everyone in his own account.
inbox.forward AT gmail.com
thanks
thnx for your great article. i’ll read more here to know more.
Hey there, Forex trading is only chic if you have the right broker. If you have chosen the wrong person, it may cost you a lot.