Regulatory Action against Tradestation Securities

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michal.kreslik
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Regulatory Action against Tradestation Securities

Postby michal.kreslik » Mon Oct 23, 2006 9:08 pm

Hello,

did you know Tradestation Securities was "knowingly entering bids and offers into the e-cbot system other than in good faith" ?

In other words, Tradestation was stealing from their clients and NFA has taken a regulatory action against them:

http://www.nfa.futures.org/basicnet/Cas ... ntrib=CBOT

I'm not at all surprised.

Michal

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Postby TheRumpledOne » Tue Oct 24, 2006 5:12 am

Narrative for 0307871 - TRADESTATION SECURITIES INC
Without admitting or denying any violation, TradeStation Securities consented to the entry of a conclusion that the Floor Governors Committee had reason to believe the firm violated:

Regulation 9B.14, in that TradeStation knowingly entered bids and offers into the e-cbot system other than in good faith for the purpose of executing bona fide transactions.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby AgeKay » Tue Feb 27, 2007 12:26 am

Tell us something that we don't already know ;-).

All dealing desks do this. They aren't real "brokers" anyway, not even market makers for that matter, they are bucket shops. You orders do not even leave their computers, they just trade against you on their internal "market" that they control and can (and do) manipulate at will. This explains why there are so many unexplained spikes in their data feeds. They go stop-hunting for a split-second, essentially stealing your money, and then return to the normal price. That's why you should always go with non-dealing desks that builds on ECNs such as EFX Group, Interactive Brokers or HotspotFx. These are the only non-dealing desk brokers for retail traders that I am aware of. That means all others so called Forex brokers are dealing desks (crooks in my opionen).

I am sorry if I sound too harsh on dealing desks, but it's the truth. Read around a little in the internet and will know what I am talking about.

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Postby Robert2617 » Tue Feb 27, 2007 12:48 am

Nothing like dragging out old negative posts. AgeKay, look at the date of the post to which you are replying.

Not to mention, what their talking about was settled over a year and four months ago. I'm sure the creodont has been fired and is long gone by now.

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Postby AgeKay » Tue Feb 27, 2007 9:53 am

I didn't mean to criticize them, I was aware that this was an old post. I just wanted to explain to future readers that this still exists and that this wasn't just an exception. Many readers will just read their post and think "oh, it is probably fixed by now" as you just did where in fact it is still a problem.

EDIT: Check out http://nondealingdesk.blogspot.com/ and http://nondealingdesk.com/ for more information. "Confessions of a Marketmaker (Dealing Desk Broker)" is a must-read.

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michal.kreslik
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Postby michal.kreslik » Tue Feb 27, 2007 7:05 pm

Thanks for cool links, AgeKay.

Every time I explain to anyone that most retail forex brokers are actually trading against their clients, they are stunned.

Considering 99% of retail forex traders lose, it's an excellent business for those brokers.

That's also why my former forex broker started rejecting my orders when I started being consistently profitable.

Michal

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Postby slableak » Wed Feb 28, 2007 1:23 am

Hi Michal,

How do you find out what brokers do this?

David

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Postby Patch » Wed Feb 28, 2007 1:47 am

Michal

I read about "bucket shops" in Livermore's book. I am not surprised that many introducing brokers, big and small, are TODAY's modern day bucket shops a hundred years later.

I am wondering who your previous broker was? and who you use now?
EFXGroup? How do I find out what other few brokers don't trade against their clients?

Jeff in VA
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michal.kreslik
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Postby michal.kreslik » Wed Feb 28, 2007 1:50 am

slableak wrote:Hi Michal,

How do you find out what brokers do this?

David


As far as I know, you can't officially find out which brokers are taking the opposite side of your positions and which brokers are relaying your positions to the market.

But make 20 consecutive winning trades at a broker and you'll find out quickly whether they were taking the opposite side of your trades. In such a case, you were pulling money out of their pockets and they will surely let you know in some way that you're not welcome :)

Michal

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Postby michal.kreslik » Wed Feb 28, 2007 1:52 am

flash9911 wrote:Michal

I read about "bucket shops" in Livermore's book. I am not surprised that many introducing brokers, big and small, are TODAY's modern day bucket shops a hundred years later.

I am wondering who your previous broker was? and who you use now?
EFXGroup? How do I find out what other few brokers don't trade against their clients?

Jeff in VA
With my Pirate Flag


My previous broker was CMS, my current one is EFX.

Michal

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