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You guys would have probably noticed that Myfxbook have been promoting MaxFX heavily for the past few months.
I received an email this morning offering a zero commission.
I'd like to warn anyone that's thinking of trading with these guys to do some serious due diligence. I've seen enough personally for it to raise enough red flags to warrant posting a thread.
Knowing what I know, I can say with 99.9% certainty that these guys are a straight B-book broker and taking huge risks in an attempt to secure market share.
Zero commissions for a month without any limitations? Gimme a break... so they're going to absorb the brokerage cost regardless of how much volume the client does? The only way they could do this is if they're not putting trades through to the market (b-booking).
B-booking isn't evil, but it stinks to high heaven when they're advertising STP execution.
AND
Negative balance protection - This is a HUGE risk to take on for a broker. It's basically saying "she'll be right", because if another situation like the SNB debacle repeats, they'll be forced to accept all losses.
For my mind, this broker is taking on huge risks as well as likely paying Myfxbook a big cut of the profits in return for the exposure. If we see a market shock that results in their traders making a tonne of money (which will come directly off their balance sheet), or a black swan event, don't be surprised if they go broke....
I received an email this morning offering a zero commission.
I'd like to warn anyone that's thinking of trading with these guys to do some serious due diligence. I've seen enough personally for it to raise enough red flags to warrant posting a thread.
Knowing what I know, I can say with 99.9% certainty that these guys are a straight B-book broker and taking huge risks in an attempt to secure market share.
Zero commissions for a month without any limitations? Gimme a break... so they're going to absorb the brokerage cost regardless of how much volume the client does? The only way they could do this is if they're not putting trades through to the market (b-booking).
B-booking isn't evil, but it stinks to high heaven when they're advertising STP execution.
AND
Negative balance protection - This is a HUGE risk to take on for a broker. It's basically saying "she'll be right", because if another situation like the SNB debacle repeats, they'll be forced to accept all losses.
For my mind, this broker is taking on huge risks as well as likely paying Myfxbook a big cut of the profits in return for the exposure. If we see a market shock that results in their traders making a tonne of money (which will come directly off their balance sheet), or a black swan event, don't be surprised if they go broke....
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