This started out in another thread but I felt it was worth its own discussion.
In the end, if regulators finally come in and kill our leverage and margins and makes us like futures, it will not be because of complainers. It will be, because upon review, Forex is being run too much like a gambling sites. Prices too vaguely based on the market to be considered investing or trading. Where contracts specifically state the "the house" is counteparty to all deals and all deals will be settled based on "the houses" data. All of the other markets have a central clearing entity and, therefore, can be verified in any dispute.
Forex is awsome, it pays all my bills, I would hate to have to make the adjustment to futures or even equities. But, when a broker can make up their own spreads, spike stops, hold prices until the market suits their position again, it is not trading. If they are claiming that you are trading the forex market, then these activies are fraud by definition. If they are saying that your agreement them allows them to "make the market" that you are trading in, then it is not Forex at all, it is a gambling site by definition. This is the legislators and regulators problem with Forex. And, unfortunately they are right. The only way to defeat the legislators arguement is to make it so that a broker cannot control the data that you trade by. Have a 3rd party supply the data with total transpearancey and have the trader and broker agree to that data source. That would immediately eliminate all of the lying, cheating and bull crap.
Would love to hear from everyone on this.
In the end, if regulators finally come in and kill our leverage and margins and makes us like futures, it will not be because of complainers. It will be, because upon review, Forex is being run too much like a gambling sites. Prices too vaguely based on the market to be considered investing or trading. Where contracts specifically state the "the house" is counteparty to all deals and all deals will be settled based on "the houses" data. All of the other markets have a central clearing entity and, therefore, can be verified in any dispute.
Forex is awsome, it pays all my bills, I would hate to have to make the adjustment to futures or even equities. But, when a broker can make up their own spreads, spike stops, hold prices until the market suits their position again, it is not trading. If they are claiming that you are trading the forex market, then these activies are fraud by definition. If they are saying that your agreement them allows them to "make the market" that you are trading in, then it is not Forex at all, it is a gambling site by definition. This is the legislators and regulators problem with Forex. And, unfortunately they are right. The only way to defeat the legislators arguement is to make it so that a broker cannot control the data that you trade by. Have a 3rd party supply the data with total transpearancey and have the trader and broker agree to that data source. That would immediately eliminate all of the lying, cheating and bull crap.
Would love to hear from everyone on this.
Profit is where readiness meets Opportunity