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Prime of Prime Broker

  • #381
  • Edited 4:04pm May 25, 2015 3:32pm | Edited 4:04pm
IMHO, the so called "retail Forex market" is no more no less than an illusion, nothing material in terms of complete real Life processes.
Have you seen those TV shows where pranks against public persons are played? Where every move the victim makes is monitored from just behind the wall and no matter what he/she tries Everything goes wrong?"That`s you in a corner" behind the screen planing the trade , the market goes your way but alas, spreads widen not reaching TP,screen frozen and revitalized when ...what a bad luck, your SL was touched with Sharp precision,no salvatory slippage here of course.This is "Forex trading" in a nut- shell. Even when ,against all odds, you manage to make some (screen) Money your account is terminated one way or Another.

The only real and straight forward process happening is your Money leaving your wallet and reaching the pockets of "brokers". The trading process stops here.

Nobody and once again, nobody can explain and prove how "leveraged Money" work in the real market as trading instrument.In best case you can call it CFD but then automatically all STP,DMA,ECN mambo-jambo become nonsens.

Currency Exchange market exists and is doing well. Big Companies buying and Selling to protect against valutary risks, banks and other abillitated institutions are generating the mythical (among "retail traders") trillion dollar market. It goes without saying that it is a 1:1 non- leveraged market.

The biggest Fraud in history is ongoing as we speak,as we are chasing the best indicators the best EAs and modern platforms.
And you know what?You can eaven trade through your cellphone now you`re only an App away.

Is retail Forex for the masses posible?Yes, it definetely and beyond any doubt, is. But not the way it is done today
  • #382
  • May 25, 2015 8:52pm May 25, 2015 8:52pm
Quoting webcom
IMHO, the so called "retail Forex market" is no more no less than an illusion, nothing material in terms of complete real Life processes. Have you seen those TV shows where pranks against public persons are played? Where every move the victim makes is monitored from just behind the wall and no matter what he/she tries Everything goes wrong?"That`s you in a corner" behind the screen planing the trade , the market goes your way but alas, spreads widen not reaching TP,screen frozen and revitalized when ...what a bad luck, your SL was touched with Sharp...
There are a few levels of Margin FX brokers and they all cant be treated as one.

First level lets call them Tier1 who have capital large enough to use a banks credit facility.
By using that banks name in the interbank market they are permitted to trade with other banks. This in essence is called Prime broking.
Hedge funds,corporates,HNW,family offices,regional banks and brokers can utilise the credit facility.
The prime broker adds another benefit of leverage which generally is around 20%. or 5% margin.
In essence the prime broker recipient is using the banks creditline with other banks.
A Physical FX transaction is still entering the interbank market despite the bank offering more leverage.
Its up to the bank offering the leverage to monitor the credit risk of the client.
If the client exceeds their leverage it has reduce their Net open position (NOP) and/or place more collateral.


2nd tier brokers those who dont have the luxury of holding their own capital or have a weak balance sheet and therefore cant obtain a prime broker facility will need to find other arrangements.They can place margin with a tier 1 broker who will do a prime of prime arrangement or they can place collateral to several banks who will only permit them to deal directly with them.


3rd tier brokers are commonly known as B Bookers who 100% internalise hoping the client will lose money. This is a typical casino model whereby the house is expected to win .
  • #383
  • Jun 3, 2015 12:14pm Jun 3, 2015 12:14pm
Quoting mitch77
{quote} Doesn't really matter who they list, as Axitrader are the counter party to all your transactions.
The broker you hold an account with is always your counterparty to all of your transactions. Even if you have an account with Goldman Sachs - they are your counterparty, because they are your broker.
  • #384
  • Edited 1:13pm Jun 3, 2015 12:52pm | Edited 1:13pm
Quoting TheMaxx
{quote} The broker you hold an account with is always your counterparty to all of your transactions. Even if you have an account with Goldman Sachs - they are your counterparty, because they are your broker.
Dont think so buddy.

DEFINITION of 'Counterparty'
The other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller that is willing to sell and vice versa.

Read more: http://www.investopedia.com/terms/c/...#ixzz3c1SWV4Kv

Basically this means that Axitrader is taking the other side of your trade and you are not on some ECN model!
  • #385
  • Jun 4, 2015 1:23am Jun 4, 2015 1:23am
Quoting mitch77
{quote} Dont think so buddy. DEFINITION of 'Counterparty' The other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller that is willing to sell and vice versa. Read more: http://www.investopedia.com/terms/c/...#ixzz3c1SWV4Kv Basically this means that Axitrader is taking the other side of your trade and you are not on some ECN model!
So you think that if you have an account with Goldman Sachs, and you place a trade with them, magically your counterparty is going to be UBS, despite the fact that you have no legal agreement with UBS?
  • #386
  • Jun 4, 2015 1:37am Jun 4, 2015 1:37am
i think baxterfx ,Lmax and interactive brokers are the best prime prime out there
all have a nice day
focus while relaxed to see better
  • #387
  • Jun 5, 2015 10:42am Jun 5, 2015 10:42am
Hi everyone,

Is it possible to write a custom strategy on Flextrade maxxtrader platform? Many thanks
  • #388
  • Jun 6, 2015 6:41am Jun 6, 2015 6:41am
Quoting Olalala
Hi everyone, Is it possible to write a custom strategy on Flextrade maxxtrader platform? Many thanks
You will need to run it through an API system
  • #389
  • Jun 6, 2015 6:41am Jun 6, 2015 6:41am
I have moved over to GAIN's Prime of Prime now...

Interestingly they are slightly better...
  • #390
  • Jun 6, 2015 2:00pm Jun 6, 2015 2:00pm
Quoting plotinus82
I have moved over to GAIN's Prime of Prime now... Interestingly they are slightly better...
After FIXI, ISAM, now GAIN, that's your 3rd broker in just over 3 months on this thread alone... Not sure what you're looking for but your quest for the perfect broker sure seems quite relentless...
  • #391
  • Jun 6, 2015 2:19pm Jun 6, 2015 2:19pm
Quoting actalis
{quote} After FIXI, ISAM, now GAIN, that's your 3rd broker in just over 3 months on this thread alone... Not sure what you're looking for but your quest for the perfect broker sure seems quite relentless...
Eh who said I ever used ISAM....? Recommending it doesn't necessarily mean I'm using it? Plus when FIXI merged with a retail broker with a poor follow through is it not sensible to leave? I mean you have like 5+ demo accounts and still havent made up your mind....
  • #392
  • Jun 7, 2015 10:07am Jun 7, 2015 10:07am
Quoting plotinus82
{quote} You will need to run it through an API system
thank you. does it mean I need to write everything from scratch including the API opening session etc?
Would using multichart or sierrachart be easier in this case?
  • #393
  • Jun 7, 2015 1:21pm Jun 7, 2015 1:21pm
Quoting Olalala
{quote} thank you. does it mean I need to write everything from scratch including the API opening session etc? Would using multichart or sierrachart be easier in this case?
Not sure about multichart or sierrachart, i know most hedge funds does it via the API method. however, one thing i would like to kindly remind you is that your broker would not be able to help you build your API or give you any assistance as most of them wouldn't know how to actually help you build you strategy into an API and I wouldn't suggest you go speaking with your broker about your API as they would try to re-code it.
  • #394
  • Jun 8, 2015 4:56pm Jun 8, 2015 4:56pm
Anybody have experience with Advanced Markets?

http://advancedmarketsfx.com/

They say they are prime of prime.
  • #395
  • Jun 8, 2015 5:27pm Jun 8, 2015 5:27pm
Quoting 24HourTrader
Anybody have experience with Advanced Markets? http://advancedmarketsfx.com/ They say they are prime of prime.
maybe they are not accept retail clients.
  • #396
  • Jun 8, 2015 5:42pm Jun 8, 2015 5:42pm
Hello, I am new in this forum
I am looking for a Prime of Prime Broker, I am a Hedger, so I am large in Euros and short in USD, after doing trading I will need delivery, I mean send the money abroad to the correspondent Banks all over the world. I am in south Europe.

I am used to buy in local Banks, but I want to see other ways to do business.
EBS and Thomson Reuters tells me that I have to get in touch bymyself with all Prime Banks (brokers), but I think they are too big, and I think they are not interested in trading with me...
can anyone direct to me to the right place? maybe saxo bank? I am thinking that London is the right place? maybe im wrong.
  • #397
  • Jun 8, 2015 6:05pm Jun 8, 2015 6:05pm
Quoting entheos
{quote} maybe they are not accept retail clients.
Yeah, but you can potentially qualify as an "experienced investor" and become "wholesale" that way.
  • #398
  • Jun 8, 2015 7:32pm Jun 8, 2015 7:32pm
Quoting 24HourTrader
{quote} Yeah, but you can potentially qualify as an "experienced investor" and become "wholesale" that way.
standard commission ,,,,20usd.
  • #399
  • Jun 8, 2015 7:34pm Jun 8, 2015 7:34pm
i found this info.
http://www.nfa.futures.org/basicnet/...25&contrib=NFA
  • #400
  • Jun 8, 2015 10:22pm Jun 8, 2015 10:22pm
Quoting entheos
i found this info. http://www.nfa.futures.org/basicnet/...25&contrib=NFA
I've seen that...not sure what the story is with it. I've not been able to find info on the details of what happened.

I did read that they decided not to renew their NFA license because of the 20 million capital requirement. They are now based outside of the US and have Australian regulation.

The reason I'm interested in them is that they have no minimum account requirements, the only requirement is that you qualify as a wholesale investor, which doesn't seem too difficult from what I've read.
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