A broker offers no spread in EUR/USD?

[quantuz]

So...i cam accross some FX brokers which offers no pips and no commission on eur/usd - while charging just one pip on all other pairs...including gold. Also...no commissions for CFDs, just some spread. Does it sounds like a ponzi? They don't seem to be DMA right? With such prices i don't think they can be connected to any larger network of provided - so it's pretty much market making or in the forex case - gambling against the house. Should i try them or it's too good to be true?

10x!

 

[Chartsy]

i dont get it , with no spread you cant hedge out imbalances with tighter interbank spreads...so you leave yourself exposed to luck

 

[quantuz]

i dont get it , with no spread you cant hedge out imbalances with tighter interbank spreads...so you leave yourself exposed to luck

Well...i am guessing they simply pray and hope for 50% of the trades to be winnign and the rest 50% to be losing - like a casino...and then they make money from the 1 pip of all other pairs. It seems they don't match any trade...just trade against you...like a...bookmaker. Which is bad. And...to these curious: Sorry , i won't mention the website here, nor am i sending it via pm - i don't wanna be banned for spamming (AGAIN, lol .

 

[Chartsy]

yeh but what's stopping a lucky punter taking 1 million from an out and out gamble 10k a pip

 

[quantuz]

yeh but what's stopping a lucky punter taking 1 million from an out and out gamble 10k a pip

yeah this punter will receive a 'nice' email that his order is rejected

 

[pboyles]

Let me guess, they are located in Panama, Belize or Mauritius. They make no mention of where they are regulated and their office is a maildrop. Forexpeacearmy is full of stories about brokers like this, if you blow your account there's no problem, if you make money and try to withdraw it then the fun starts.