is instaforex a reilable broker?

[tradetogain]

paul,
in indian context i can say it is happening.i am a first hand proof.
in 2004/2005 i used to trade with a broker without a penny in my account.
how??
he will give me the net position of all the clients in his branch and if the net is short i will trade long against their positions.and i had few friends also doing the same.
if some of their clients are squaring up then accordingly the broker will call us and we will close our position.this we were doing for some time and then stopped since better sense prevailed and we thought of the ethics involved.
and we were making decent money since most of the traders were always wrong in catching the direction

This is a true story:

In 2006, was only 2 years into trading. I was doing okay, but I still had a ways to go to more thoroughly perfect my methodology. Someone came to me to give me some advice about watching for some brokers who trade against their clients.
We became friends (and still are), and as time evolved, he also became a good trader. Now, he no longer talks about forex brokers trading against them. He was conned into thinking that many could do that.
Brokers trading against someone, for the most part, is an excuse by people who have failed.

 

[4xpipcounter]

I can understand how they are getting traders on both sides in order to level the playing field. But, how was the price manipulated?
In other words, let's say I just became a new client in the middle of all this, how would I be effected?
Just curious, TTG. I didn't mean that to challenge you.

paul,
in indian context i can say it is happening.i am a first hand proof.
in 2004/2005 i used to trade with a broker without a penny in my account.
how??
he will give me the net position of all the clients in his branch and if the net is short i will trade long against their positions.and i had few friends also doing the same.
if some of their clients are squaring up then accordingly the broker will call us and we will close our position.this we were doing for some time and then stopped since better sense prevailed and we thought of the ethics involved.
and we were making decent money since most of the traders were always wrong in catching the direction

 

[tradetogain]

there was no price manipulation.just few of us being close friends with the broker ,got to know the net positions of clients in his branch.
mostly the daytraders and positional traders in india in stock derivatives have been the loosers since long.and they have to maintain the margin money and the mark to market difference on a daily basis.
for example x, y,z,... are short in nifty at 5000 and it goes to 5050 by the closing hours and jus before closing my broker will call and inform this.
and all i will do is take a long and carry that forward till x or y or z closes their position or i take my profit before they close their position.
and i wont be paying any margin for my position since at the branch level only the net position is taken into account for margin maintenance by the head office of the broker.
hence we were trading against the positions of some of the clients (which was the topic your post to which i replied was addressing).
hence no price manipulation was involved but only the misuse of client's positions were involved.even that is unethical i believe.
hope i made myself clear

I can understand how they are getting traders on both sides in order to level the playing field. But, how was the price manipulated?
In other words, let's say I just became a new client in the middle of all this, how would I be effected?
Just curious, TTG. I didn't mean that to challenge you.

 

[4xpipcounter]

Ahhh, yes, perfectly clear.
That inside stuff goes on all the time. There is a problem, as you mentioned with ethics, but then there is so much that is borderline.
There are fund managers with brokers that watch and monitor certain trader's actions, then trade with or against the trader based on reputation of the trader.
Now, there are companies that allow their clients to openly follow the traders of their choice and duplicate or trade against their trades.
OTOH, I also learned a lot when I went on a tour of a brokerage in Chicago.

there was no price manipulation.just few of us being close friends with the broker ,got to know the net positions of clients in his branch.
mostly the daytraders and positional traders in india in stock derivatives have been the loosers since long.and they have to maintain the margin money and the mark to market difference on a daily basis.
for example x, y,z,... are short in nifty at 5000 and it goes to 5050 by the closing hours and jus before closing my broker will call and inform this.
and all i will do is take a long and carry that forward till x or y or z closes their position or i take my profit before they close their position.
and i wont be paying any margin for my position since at the branch level only the net position is taken into account for margin maintenance by the head office of the broker.
hence we were trading against the positions of some of the clients (which was the topic your post to which i replied was addressing).
hence no price manipulation was involved but only the misuse of client's positions were involved.even that is unethical i believe.
hope i made myself clear

 

[Piratetrader]

if you read the client agreement page and understood it everything should be fine

 

[4xpipcounter]

Saif, that has nothing to do with what goes on behind the scenes, customer service, feeder reliability, etc etc.
All client agreement pages with all brokers look almost the same.
My new broker I use for hedging has been excellent to this point. Their client agreement page looks virtually the same as the scam forex brokers (without naming names).

if you read the client agreement page and understood it everything should be fine

 

[Piratetrader]

Saif, that has nothing to do with what goes on behind the scenes, customer service, feeder reliability, etc etc.
All client agreement pages with all brokers look almost the same.
My new broker I use for hedging has been excellent to this point. Their client agreement page looks virtually the same as the scam forex brokers (without naming names).

Yes sir I know that I have used instaforex and still using it! I think their customer service, feeder reliability is ok sometimes the chart are inacurate but overall it is fine! but just type on google instaforex scam About 106,000 results PPPP