I get a lot of spam and junk email in my inbox every day, so I usually don’t pay attention to new forex sites that spring up over the place, however, a couple of my subscribers have added comments on this site about a popular forex broker review and free forex signal service at Forex Bastards (which has since transitioned over to Forex Peace Army).
So, this weekend I decided to go and check it out.
I signed up for Forex Bastards’ free forex signal service and read some of their popular review pages on forex brokers, forex education, and forex alerts.
Having perused the site I liked the similar views held by the owner of Forex Bastards, Felix Homogratus, that being: Oanda is the best forex broker out there (but not perfect). Another interesting thing I found about Felix’s site was the economic announcement portals he uses to obtain the latest released figures. If you are someone who isn’t using Bloomberg or Reuters to obtain your economic figures, and these numbers are essential for your forex trading strategy (and you can afford the monthly charge) then you’ll want to subscribe to Felix’s signals and read what he has to say.
I also had a good laugh at his “Forex Scams” page where he listed popular forex brokers such as AC-Markets, Refco, and FXCM on this page!
Oanda CEO Interview
Perhaps the most interesting thing about Forex Bastards website was Felix’s broadcast email that he sent out on the weekend regarding an interview he had with Richard Olsen, CEO of Oanda.
I’m probably not at liberty to copy the entire email here, but what struck me was the fact that with Felix’s news announcement strategy (where he takes a direction as soon as figures have been released on popular announcements then proceeds to exit that position within ONE minute of it being opened) was that Oanda were willing to take a loss with the positions he was taking (due to the fast moving market)!!
This seemed quite strange as a forex broker wouldn’t be able to stay in business long if all their clients took positions where the broker had to incur a loss.
As Felix has had some success with this news announcement strategy he was looking to increase his position sizing to see if he could make more money with it, but after realising the cost to Oanda of his strategy he concluded after the interview that he would maintain his current position sizing and continue to withdraw his profits on a weekly basis.
No doubt fearful Oanda may change their views on such strategies.
In a way it reminded me of the days when forex brokers guaranteed stops and forex traders were able to make good money trading volatile announcements such as the Non-Farm Payrolls announcement by strangling either side of the currency. Unfortunately this strategy became nullified when forex brokers no longer guaranteed stops, and we all experienced slippage of between 30-50 pips!
Personally, I think that Felix’s news strategy will not last long at Oanda, as I haven’t heard too many brokers willing to take a loss on behalf of their clients. Things that make it even worse for Felix are the fact that he has a large subscriber base where he details his strategy before the event and no doubt some of them use his strategies on Oanda too. All it will take is one person with a big enough bank to nullify this opportunity for everyone else.
For those using Felix’s strategies: take advantage while the opportunity exists, but don’t think it will last forever (although for your sakes I really hope it does).