Many cash FX firms are counter party to your trade up to $20,000,000. Therefore, every dollar you lose is potentially that company’s gain. The "No Dealing Desk" promotion and disclosure aims to reassure customers that they are really trading with other customers and/or banks and thus, the firm no longer has a huge financial incentive for you to lose every red cent you have on deposit with them. How very refreshing, don’t you think?
The problem is, the OTC market has less regulatory oversight and I'm not aware of any way to confirm that the firm really isn’t in some way still on the other side of your trade, or that the banks providing liquidity have the ability to make sure they get their pound of flesh in some way as well. Thus, the attempts at creating a legitimate marketplace may fall short, based on the lack of bankruptcy protection and the ability to verify affirmations from firms that in the past may have been selectively disingenuous in what they disclosed to their clients.
Perhaps the most prominent entities that matter-of-factly disclose that they’re seeking to profit from your loss are casinos. While we may not hold casinos in the highest regard, and much has been portrayed of their amoral transgressions, millions flock to the desert each year for some glitz, glam and gambling. I don’t begrudge casinos their revenue model, because they’ve been honest with us up front, and they show us a good time while we’re there. So, many of us go expecting to lose, but hoping we have a good enough time to justify the expense.
Many cash FX firms are on the other side of your trade, and with that model, seek to profit dollar for dollar from your losses, just like a casino.
So, there we are, cash FX firms are like casinos, what do you think?
The problem is, the OTC market has less regulatory oversight and I'm not aware of any way to confirm that the firm really isn’t in some way still on the other side of your trade, or that the banks providing liquidity have the ability to make sure they get their pound of flesh in some way as well. Thus, the attempts at creating a legitimate marketplace may fall short, based on the lack of bankruptcy protection and the ability to verify affirmations from firms that in the past may have been selectively disingenuous in what they disclosed to their clients.
Perhaps the most prominent entities that matter-of-factly disclose that they’re seeking to profit from your loss are casinos. While we may not hold casinos in the highest regard, and much has been portrayed of their amoral transgressions, millions flock to the desert each year for some glitz, glam and gambling. I don’t begrudge casinos their revenue model, because they’ve been honest with us up front, and they show us a good time while we’re there. So, many of us go expecting to lose, but hoping we have a good enough time to justify the expense.
Many cash FX firms are on the other side of your trade, and with that model, seek to profit dollar for dollar from your losses, just like a casino.
So, there we are, cash FX firms are like casinos, what do you think?
Do not focus on making money; focus on protecting what you have.