ZoneTrooper.........everything you posted is completely useless in the contex of this thread. RefcoFX was some sort of a scam.
Sorry. I was commenting about the fellow who said he only had $700.00 locked up. My point is, that you can not successfully trade forex with a $700.00 account. An account taking on one position with that little equity will most likely be stomped out by the dealer most of the majority of the time. And a person trading with $700.00 equity in his account be more of a gambler than a trader. And the odds against him. I do think it's a scam that dealers don't inform their customers of this fact, and allow people to open up accounts with so little equity in them, knowing that the chances that this customer will have any success is very slim. I believe FOREX dealers are lacking in their responsibility to their customers. And I do believe it is immoral. Sorry about being so off topic. But this just bugs me that people are so mislead by FOREX dealers in this area and their is so much silence from people who know better, and should offer a little friendly advice to those who are being scammed.
Zonetrooper, you have to realize that most traders start out undercapitalized anyway. Furthermore, the learning curve is so great. 99.9% are going to fail within 1 year. That is just the way it is. You really shouldn't blame the dealers. Besides, most traders don't know what they are doing anyway. Looking back at my own experience 10 years ago, I didn't know what I was doing either. I am no longer the same forex trader that I was when I started out in June 1995. I think and act differently.
Starting with $500.00 and ONLY placing 10k positions ($50.00) is not gambling. Costs $3.00 to enter, set the stop at 70 pips and maximum loss is equal to the commission on buying/selling options. Set a sell limit of +50pips and the chances of the limit getting hit between 3am EST and 10am EST are quite good. Placing 50k ($250.00) would be gambling at 200:1 leverage, nothing wrong with 10k at $1.00 per pip. But none of this matters with a company like RefcoFX.
True. Most people are in it for the fast buck, just like the stock market. FOREX gives them the opportunity to loose their money quickly, and they take it. I have the same problem when I see people at convince stores buying lotto tickets, thinking that they will get ahead that way. Some do, get ahead, and win millions. Some break even. Most just pay.,.... I guess FOREX is just online lotto for many people.
i agree i dont think fxcm can take over clients accounts i think they want to look like the good guy to attract business