FX Vanilla Options, the Solution to Criminal Brokers

Much of this stuff has been floating round the internet for years. That doesn't mean its not honestly intended to be helpful. But posting about brokers and trainers isn't saying anything about trading.
 
Strength in numbers I like it....

This is the reason why so many of you are wasting your life trading spot FX, posting web links about a company that we all know very little about. Tarnishing Israel and the Marshall Islands because you read some idiot, if it is even true put money there and lost it all.

It seems there are no shortage of idiots that keep losing money on investments in off shore jurisdictions. It shows the level of intelligence. Look do what you want and say what you want no one is making you or anyone do anything. First off, most of the brokers you think are legit are not. I am mature enough, not saying any names but they are probably laughing at you. You have probably being losing money to a non-Marshall Island or whatever you call it broker for years, so a broker offers a product and are not in the UK, you jump up and cry wolf, again that is just stupid and then you assume I will dissappear seeing your stupid links. FYI I am still here. I will still keep saying the real scam is spot FX regardless of the entities jurisdiction.

The idea the UK is more secure for funds than Cyprus or any other offshore location is silly. The idea is clearly peddled by politicians with agendas. Money does not dissappear because it is an Island not near the UK infact some of these Islands are British territories and subject to laws of the crown, so you suggesting what you just suggested is naive at best or just stupid and of course you have comrades.

Truthfully you have no business with trading, you are way too naive. In fact the biggest scam in history was performed by a UK FCA regulated stock broker, they even had their own moto GP bike, well it was big con. Who got fined for compliance breaches? a certain plus5... I am sure we can finish the rest of the name but are they not the largest UK broker after IG. So you see, if it is wolf you cry this is a wolf pit in case you haven't noticed.

Okay now that ugly business is out of the way... We can go back to trading. Vanilla Options run by a broker offering them in the UK that may or may not be based in Marshall Island, Israel, Cyprus, etc does not make it a scam, so good people we can have a healthy discussion on Vanilla Options or we can start shooting brokers. Up to you... Either way I love it and no one scammed me. So... I guess you can keep doing what you are doing. :D
 
Alessiop said:
what a waste of time...i really thought this thread could have been interesting...and then what? "only UK broker offering FX options to retail" is a broker in Marshall Islands? just few days ago heard about a guy that made a similar investment there and his money disappeared.

Btw I used to trade FX options with a real UK broker years ago. But probably they let you only if classified as professional, so depending on trading experince, assets and any professional experience in that market.
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Going on Let's hear it. I am guessing you are the real broker who has spotted the opportunity to sway more poor souls off the back of tradingspaces and Keen both seem like Spot FX junkies who are convincing people to lodge cash with the so called "good" brokers, if there was ever a paradox.

It is also quite wrong of you to tarnish a broker that has probably been around for over 10 years just because of where their head office is. This is so immature and ill thought out. Well, anyone stupid enough to take you guys seriously probably deserves the pain they are experiencing.

Anyway, each to his own. Can we just get a sensible discussion? Open another thread then crack at the broker, you won't be the first.
 
To hopefully restore this thread back on track as broker that offers Options is not important, everyone is free to choose who they use, the selection is small because of the risk and there are certainly more choices for this in the US and offshore but not in Europe.

Here is an article in futures mag, that clearly states the benefits of futures and Options versus spot and one of them is precisely the tampering in Spot FX, there is a counter argument for Spot FX but feel free to read. http://www.futuresmag.com/2011/08/25/dueling-markets-forex-futures-vs-spot-forex?page=3

Oh! I hope someone does say I own futures Mag lol!
 
Welcome to trade2win bro......

Rough ride ?

This is a picnic so far......so hang in there..."you are never going to convince all parties regarding offshore registered companies .......so,focus on the benefits of vanilla options vs others

If I could eliminate the stop loss volatility on my spot trading I would retire tomorrow......we just wear it as a cost of trading ......sadly

N
 
NVP said:
Welcome to trade2win bro......

Rough ride ?

This is a picnic so far......so hang in there..."you are never going to convince all parties regarding offshore registered companies .......so,focus on the benefits of vanilla options vs others

If I could eliminate the stop loss volatility on my spot trading I would retire tomorrow......we just wear it as a cost of trading ......sadly

N
Click to expand...
I realize it is... :) Well, I expected this. So not concerned in the slightest. The power base has been disturbed. Keen and the other guy are upset because I had a pop at their guru who was selling a strategy to make profits in FX and people actually believed him. So he is upset. Well, I can't stand gurus who say they have systems. It is the biggest lie ever.

I merely suggested derivatives were a solution to prevent stop hunts rather changing strategy. Then the broker that I refused to name to start, for the exact reason that a good company could easily be tarnished from flippant talk from fools. The stuff I know about some of the main brokers that they all have faith in will certainly send ripples and open a new can of worms but what is the point to that? The company that the guy is slating is older than most and it doesn't matter if they have branches in Cyprus or Malta or anywhere as long as they give a good service. No one steals anyone's money unless they are binary, that's just ridiculous talk, whether they are offshore or not. It is better to have an offshore broker that does things properly than one based in the UK that ensures you are always looking for new strategy as they wipe you clean legally.

You are right NVP not everyone will be convinced, however they should know that there is nothing wrong with European brokers, UK brokers are not better and the FCA regulations are derived from the same regs that govern all of European finance including Cyprus and all other small Islands. The reason financial entities go offshore is to reduce tax liability. Almost all the brokers have FCA registration anyway, it is how they service UK clients, so it does not matter. Don't listen to scaremongering and loose talk from clearly traders who can't trade or know very little about trading itself.
 
Trading Spaces said:
Have you ever taken.money out of your account at easymarkets?
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If you are that convinced these guys are frauds ( a very silly non-factual assumption on a firm you have never done business with) you can pick up the phone and call them and publish your findings, at least they will have some merit and fact, this is loose talk and it is unfair to the broker who has not solicited money from you or anyone. They offer a valuable service, they did not invent Options, you can talk the CBOE if you have issues.

Stop slating the company it is childish and it is not what the thread is for. Easy Markets is a good company and my experience with them is only positive since you raise the subject. They have been around for a long time and no there business well. They have a product that every broker should have but doesn't. They don't deserve to be tarnished on a public forum with stupid accusations. Allow people to judge for themselves.
 
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vanillaman said:
If you are that convinced these guys are frauds ( a very silly non-factual assumption on a firm you have never done business with) you can pick up the phone and call them and publish your findings, at least they will have some merit and fact, this is loose talk and it is unfair to the broker who has not solicited money from you or anyone. They offer a valuable service, they did not invent Options, you can talk the CBOE if you have issues.

Stop slating the company it is childish and it is not what the thread is for. Easy Markets is a good company and my experience with them is only positive since you raise the subject. They have been around for a long time and no there business well. They have a product that every broker should have but doesn't. They don't deserve to be tarnished on a public forum with stupid accusations. Allow people to judge for themselves.
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Stop acting the politician and just answer the questions: yes or no ?
 
Signalcalc said:
Stop acting the politician and just answer the questions: yes or no ?
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This is a broker that I have been with for more than 2 years now and you think I am shy about saying if I withdraw or not? Really?!

This broker is a legitimate broker and I would not have an account if not. Remember I am a person too and they have more incentive to rob me than you and if anyone has ever had issues please come forth.

Since you indulge me...

The broker that you are so trying to tarnish just because I pissed on your bull**** 40k post.

Here is their FCA register approval, licensed to offer products in the UK
https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfCXuAAN

Secondly, this company has been around since 2003, I am sure that was before you knew what FX was. This company is well capitalized clearly seeing the likes of Iron FX and Alpari barely survived a few years.

Thirdly, Cyprus is the home of many brokers including FXPro and a few other large brokers, for tax reasons. Many brokers including those of even FXCM (your favourite) all have offshore houses, what is wrong with this? Does that make them thieves? I am trying here to show you how misguided your logic is.

So rather than waste your breadth tarnishing a legitimate business while sitting on your broke a***. Try and make some money and then you can talk. :cheesy:
 
Signalcalc said:
You should run for president, a simple yes or no would suffice :LOL:
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Well you have your answer, so you can stop dragging someone else's name in the mud.

Go make another 40k and lose it all again :LOL: Crazy story... Us normal people will actual trade sensibly with a view protecting ourselves. Rather than following blind gurus, that tell us about profitable strategies.
 
Daniel,

There will be a plenty of naysayers on this forum. Please, don't take it personally. Just set up a live trading account and start a trading journal for them to see your progress over time if you're confident about your trading strategy and believe you truly have an edge over the market.

This is exactly what I did here a couple of months ago. To date, my gains are modest because my strategy is a long-term one and heavily relies on major price breakouts of which we don't get that many per year. Yet I'm in no rush for I know the edge is there for me. I don't even mind running a fairly large lot size with high marginal leverage. If you know your strategy works and enters the market only on fairly large movements while also employing a form of "circuit breakers" to skip trading during total "black swans" like last year's SNB debacle, you don't mind higher drawdowns.

My only advantage is that I employ an FX strategy, so my selection of brokers is far greater. Currently, I stick with Tickmill (which operates out of the Seychelles that are in no way better or different from the Easy Markets' Marshall Islands setup), I've also been looking into ICMarkets and Pepperstone, both Australia-based but I'm not sure how it goes with the taxation of trading profits in Australia. Speaking of your broker, I can attest Easy Markets have been around since the early 2000s and I don't recall any major scandals associated with them (a word of which spreads online like fire), although I never had a trading account there myself.

I stick around here mainly to meet people (not just any people but true industry professionals like you), make new professional connections as well as to entertain myself through chatting with fellow traders. The forum members are not inherently evil - they have just been burnt badly in many scams over the years and take anything new with a huge grain of salt. Yet I have nothing to worry about - in my trading journal, I keep patiently and respectfully answering their questions about my bot when they have those questions and commenting on my trades. I don't mind taking some heat - even when (not if but when) I eventually demonstrate mind-blowing profits due to the merciless compounding effect (as F. S. Comeau once said, "you can't beat math") in about two year's time, they will still be looking for scam everywhere and occassionally accusing me of all the deadly sins (such as being in cahoots with a brokerage, behind behind a brokerage, being a brokerage employee, being behind the brokerage's liquidity provider LMAX, or even part of the global freemasonry or whatever else your imagination can portray), even though I made it clear from the very beginning that I won't be selling them on anything or even giving them a limited compiled copy of my bot for free (which I was going to initially but met with fierce objections on the part of some forum members claiming that I would be "providing indirect financial advice through a bot" thereby, however that sounds to you).

So I just decided to carry on while leaving others entirely to their own means except for the true industry professionals who I hope to meet throughout my time on these boards. The small retail traders won't help me take my ideas to the next level anyway while the industry professionals are the only ones who can.

That being said, I'm cordially wishing you much patience, luck, profits, and terrific new professional connections. Like I mentioned in my own thread, we can continue chatting privately and even meet somewhere offline when the time is right. Please, don't take anything too hard here.
 
babyjake1961 said:
Daniel,

There will be a plenty of naysayers on this forum. Please, don't take it personally. Just set up a live trading account and start a trading journal for them to see your progress over time if you're confident about your trading strategy and believe you truly have an edge over the market.

This is exactly what I did here a couple of months ago. To date, my gains are modest because my strategy is a long-term one and heavily relies on major price breakouts of which we don't get that many per year. Yet I'm in no rush for I know the edge is there for me. I don't even mind running a fairly large lot size with high marginal leverage. If you know your strategy works and enters the market only on fairly large movements while also employing a form of "circuit breakers" to skip trading during total "black swans" like last year's SNB debacle, you don't mind higher drawdowns.

My only advantage is that I employ an FX strategy, so my selection of brokers is far greater. Currently, I stick with Tickmill (which operates out of the Seychelles that are in no way better or different from the Easy Markets' Marshall Islands setup), I've also been looking into ICMarkets and Pepperstone, both Australia-based but I'm not sure how it goes with the taxation of trading profits in Australia. Speaking of your broker, I can attest Easy Markets have been around since the early 2000s and I don't recall any major scandals associated with them (a word of which spreads online like fire), although I never had a trading account there myself.

I stick around here mainly to meet people (not just any people but true industry professionals like you), make new professional connections as well as to entertain myself through chatting with fellow traders. The forum members are not inherently evil - they have just been burnt badly in many scams over the years and take anything new with a huge grain of salt. Yet I have nothing to worry about - in my trading journal, I keep patiently and respectfully answering their questions about my bot when they have those questions and commenting on my trades. I don't mind taking some heat - even when (not if but when) I eventually demonstrate mind-blowing profits due to the merciless compounding effect (as F. S. Comeau once said, "you can't beat math") in about two year's time, they will still be looking for scam everywhere and occassionally accusing me of all the deadly sins (such as being in cahoots with a brokerage, behind behind a brokerage, being a brokerage employee, being behind the brokerage's liquidity provider LMAX, or even part of the global freemasonry or whatever else your imagination can portray), even though I made it clear from the very beginning that I won't be selling them on anything or even giving them a limited compiled copy of my bot for free (which I was going to initially but met with fierce objections on the part of some forum members claiming that I would be "providing indirect financial advice through a bot" thereby, however that sounds to you).

So I just decided to carry on while leaving others entirely to their own means except for the true industry professionals who I hope to meet throughout my time on these boards. The small retail traders won't help me take my ideas to the next level anyway while the industry professionals are the only ones who can.

That being said, I'm cordially wishing you much patience, luck, profits, and terrific new professional connections. Like I mentioned in my own thread, we can continue chatting privately and even meet somewhere offline when the time is right. Please, don't take anything too hard here.
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I certainly won't Jake, anyway it is always good laugh to here some of the stuff around here. Derivatives are a huge part of trading, so it was nice to introduce a few traders to it. Some people naturally got there knickers in a twist. Good there are still people with sense. Yes, I mean what what I say we should get in touch, the thing these days is, if you run a bot it makes money everyone wants to see the bots logic, so it is not so much results because the bot can easily be back tested against your current history from conception. Most of the time the bots can't factor risk properly so, this is always a grey area. By the way I worked closely with Daniel, I assume you guessed from the blog but James is me for personal reference. Good trader no doubt.

Anyway, thanks for adding to the thread buddy.
 
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vanillaman said:
I certainly won't Jake, anyway it is always good laugh to here some of the stuff around here. Derivatives are a huge part of trading, so it was nice to introduce a few traders to it. Some people naturally got there knickers in a twist. Good there are still people with sense. Yes, I mean what what I say we should get in touch, the thing these days is, if you run a bot it makes money everyone wants to see the bots logic, so it is not so much results because the bot can easily be back tested against your current history from conception. Most of the time the bots can't factor risk properly so, this is always a grey area. By the way I worked closely with Daniel, I assume you guessed from the blog but James is me for personal reference. Good trader no doubt.

Anyway, thanks for adding to the thread buddy.
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I've sent you an email at your Gmail address. Let's continue there.
 
vanillaman said:
I am starting this thread in response to the suggestion made on this thread. It appears there is a need.

I was a professional Vanilla Options trader for a number of years. I worked with both Nomura and MS as an FX Options trader. I have done incredibly well from it and for the past 2 years since leaving banking I have been trading Vanilla Options retail, it was very difficult to find in retail understandably most brokers can only handle binary Options as it is a scam. So long and short I eventually found the only broker in the UK with this and 2 years on I pretty happy, a little bit more expensive than interbank Options but the gains show make up for it and it is natural with the risk on Options that the dealer gets compensated fairly.

Anyway, retail brokers have had open season on poor clients who have stops hunted within some 100 pips these days, the average volatility on assets has been cranked up. Most professionals don't trade spot, they trade derivatives, this is a crucial part of trading that leads to guys make lots of money. It is nearly impossible to make money in spot markets, most people are just lying and brokers are doing a fine job of circulating fake statistics. It's all "Fugazi". Real money is made everyday in the futures and Options markets by professionals, they don't want you to know because that will put many brokers out of business as most can't even afford a seat on a real exchange and refuse to offer OTC products that mean that they won't make as much money. Notice TBond futures are rarely available as CFD's. That's because TBond futures are easy to call and a really directional. I am an Options trader, one of my good friends was a Barclays Bond trader and he was making $1,000 a day with roughly $250-$300 risk, he is has made millions on T bond futures.

I can only tell you about Vanilla Options

An Option is a derivative most traders will trade the Option and create a delta hedge in the cash market as necessary. Hence the NY cut is more and more talked about.

Options don't need stop losses as your risk is the premium, that puts an end to be stop hunted. Volatility is your friend, the more volatile the market, the better for you.

Options expire, so you can long date them for time value or short date and look for intrinsic value.

It can also act as insurance and limit losses in the cash market but with various strategies in the Options market like Straddles and Strangles, there is not much point.

Options have there cost built in so naturally the spread is wider, that said once the premium is paid the spread is one off cost, so the broker cannot spread widen something that is the norm in the spot market, imagine no slippage.

These are few reasons why professionals including your broker is active in the Options market making money off you. Time to spark a real debate here. Open your eyes to this. It may be your only saviour.

comments welcome from FX Options traders. The above link takes you as well to this Options school for free, so you can gain some background, it is one of the best sources I found in one place.

I hoping to generate some healthy debate and share experience on this thread on how everyone can start reaping the rewards of trading. No more dreams...
Click to expand...

I don't know much about options to be fair and my experience very limited, all I really remember about them was the time decay killing it. Interested to hear another view though.
About not using options. Not all tarders trade with stops and slippage can go both ways otc. I haven't traded FX spot in gooood while but prices still go up and down right. Is just a price, is all the same, to me neways.
 
darktone said:
I don't know much about options to be fair and my experience very limited, all I really remember about them was the time decay killing it. Interested to hear another view though.
About not using options. Not all tarders trade with stops and slippage can go both ways otc. I haven't traded FX spot in gooood while but prices still go up and down right. Is just a price, is all the same, to me neways.
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Thank you darktone, great addition to the thread. Also, just to clear up the broker behind this is actually ORE and they get liquidity from Goldman Sachs, so again they are the main LP, I thought this is valid point to make.

On to your question on Option time decay, this is a natural phenomenon, same with futures, as many we tell you holding the contract to expiry and rolling over can have consequences as a result of contract spread. Options factor in time decay so they lose value daily, in truth the impact of time decay doesn't really get felt till we are usually in the money or considerably out of the money but Vega will compensate so assuming your theta (time decay) was $1 and your Vega was $3 for every 1% increase in volatility. Then your Option will tomorrow lose a $1 but if Volatility increased by 3% then then your Option will lose $1 but gain $9 on Vega. So in effect as long as you are directionally right, the impact of Delta and Vega should negate that of Theta, so by the time the Option expires there will be enough intrinsic value and Theta reduces as well near expiry so a $1 theta could easily be 20c by expiry. Remember, traders lose money hand over fist in the spot markets due to ups and downs, Option premiums will fluctuate but as long as you have been gaining momentum, you are fine.

The bitch is when Volatility declines and you are in the wrong direction but that said, you can never lose more than premium so it becomes a trade that may well end breakeven with no loss at all in this worse case scenario. The key here is that market conditions have changed and that's a fact, so that increased volatility now benefits Options traders. Spot traders now have more risk than ever before.
 
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