Here’s an article from Barron’s on currency trading.
http://online.barrons.com/article/SB50001424052970204735204576246772527987918.html?mod=BOL_hpp_mag
It makes for some sober reading. In particular they look at the operations of Gain Capital and how they’ve been making money. I have experience of trading FX using Gain Capital through Tradestation. It was not a pretty experience and gives me a good idea of how they’re able to make such good revenues! It’s no surprise to hear that Tradestation have stopped using Gain Capital. I wonder how many people like me they lost due to the poor performance of their FX trading product?
I look forward to your comments and thoughts about the business.
August 2, 2011 at 3:10 pm
Interesting reading. it strikes me one of the ways retail customers can compete is to form a brokerage that does not spike retail customers or offer high leverage or take the other side of trades and any of the other so call complaints.
August 3, 2011 at 2:30 pm
Hi Ant, thanks for your feedback. If you find a retail brokerage that does all of those things and still offer tight spreads and execution then you’ll be on to something.
As it is most retail brokers are just white-label operations of existing major retail platforms.
July 9, 2012 at 9:54 am
I am in the process of thorougly evaulauting LMAX, so far so good. I guess this is more of an exchange and not a traditional broker. They do offer smaller accounts for retail clients and now also provide the MT4 trading platform.
July 10, 2012 at 10:42 pm
I think if I was an active intra-day trader then LMAX would be a good exchange to work through for FX Trading. Ill be interested to hear more about how they operate through MT4.
July 9, 2012 at 10:08 am
*thoroughly *evaluating