If you go to InterbankFX’s homepage you just might notice how proudly proclaim their “no dealing desk” status. Yet how humorous and perhaps sadly tragic in that it speaks of something foul with this forex business that at the bottom of every e-mail they send out you see this statement – and better yet all capitalized too!
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. INTERBANK FX, LLC IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, INTERBANK FX, LLC’S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS INTERBANK FX, LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES INTERBANK FX, LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND INTERBANK FX, LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.
IF INTERBANK FX, LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT INTERBANK FX, LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE INTERBANK FX, LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM INTERBANK FX, LLC OR ANY OF ITS SOLICITORS.
What, you’re shocked?! Don’t be! Did you ever read that e-mail footer? I bet you didn’t.
Just thought I’d let you know in case you did not. Make sure you take this into account when you’re trading. Not only are you fighting against other traders who most likely are better than you but against your broker as well – a recipe for failure indeed.
Be aware that any company which says that they are a “no dealing desk” broker yet acts as a counterparty in a transaction is most assuredly insulting your intelligence.
You know this stuff would not bother me so much if they just plainly stated on their website that they’re a market maker pure and simple. No, they have to lure the unsuspecting clueless traders who upon hearing “no dealing desk” automatically their eyes light up like candlesticks. Folks, just look up counterparty.
I just felt that I had to get that off my chest. Now get back to your IBFX MT4 trading station.
Cheers,
Alan
Hello Alan,
I’ve heard of you plentiful times from forexpeacearmy. I’m a new forex trader, only begin 2 months ago and i’m playing with a mini account with only US$400 startup(i’m 17!). I bought the forexautopilot software last week and since then, the system hasn’t made a single trade for me! Is it possible for you to help me with the settings for this EA?
regards,
Gary
I can give you a bit of assistance since I’m a nice guy, but not here. Go this forum link and register:
http://www.moneyguruforum.com/expert-advisors-metatrader-4/6089-forex-autopilot-system.html
I presume you read the manual, right?
Yeah,i’ve read the manuals and setup the settings on my ibfx mt4 as instructed. I’ll check out that forum. thx
You’re welcome. Checkout the forum as I’ve responded to you there.
It seems this is some new requirement coming from the regulators. Similar disclosure from OANDA:
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. OANDA IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, OANDA’S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS OANDA ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES OANDA OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.
IF OANDA ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT OANDA MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE OANDA ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM OANDA OR ANY OF ITS SOLICITORS.
Yes Salsero you are absolutely right. I believe it is definitely a good thing as at the very least newbie traders are made aware as to how the ‘game’ really works.
If I’m not mistaken you also have to sign that you’ve read and understand the disclosure statement before you can open an account.