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This is not a serious complaint. Forex speculators don't cause currency collapses; bad central banking policy does. Forex traders either a) get it wrong, and lo

This is not a serious complaint. Forex speculators don't cause currency collapses; bad central banking policy does. Forex traders either a) get it wrong, and lose money, or b) get it right and make money while bringing prices in line with reality. Play with eToro for a few minutes some time. It's a very well-done app. Both as a game and as a trading platform, it's a move in the right direction, and it's something worth emulating.

what 16y ago
Is eToro some bucket shop? It's suspicious that they give you money to sign up. Deposit $10,000 and they give you $1,000. They must know that they're going to get that money back pretty quick.
- gxti 16y ago
  Lower tier FX brokers pretty much are bucket shops. See here for an explanation of some of the things that bad shops do: http://nondealingdesk.blogspot.com/2006/04/non-dealing-desk-advantages-and_21.html http://nondealingdesk.blogspot.com/2006/04/non-dealing-desk-...
_delirium 16y ago
That's a strange bit of unsupported dogma. Forex traders can also: c) engage in massive amounts of feedback-loop speculation, causing market movements. Particularly likely if it becomes common for random retail investors to engage in "game-like" forex trading--- you'll get the same sort of situation as with the dot-com bubble, with retail investors signing up to E*Trade and pumping up the value of tech stocks. Sure, they'll likely lose money eventually, but not before distorting a bunch of markets.
Perceval 16y ago
>Forex speculators don't cause currency collapses George Soros played a role in the collapse of the Thai Baht, during the early stages of the Asian Financial Crisis in 1997. He also personally caused the sudden drop of the British Pound in the 1992 'Black Monday,' which led Britain to leave the European ERM. People on eToto obviously will not cause this kind of damage. But it's incorrect to say that foreign exchange / currency speculation cannot cause a currency collapse.
- kydoh 16y ago
  Soros has also been on record to say that he wouldn't be able to do the same thing today given the massively increased complexity of the foreign exchange markets - things were different, even just ten years ago.
- jarek 16y ago
  It is important to differentiate between the immediate trigger and the underlying cause.
- byrneseyeview 16y ago
  Britain's strategies were unsustainable. Without Forex traders, such strategies would just be used more, leading to more economic distortion. In forex, as in other markets, you can't push prices further away from their real values unless someone else is going to do the same after you.

what 16y ago

Is eToro some bucket shop? It's suspicious that they give you money to sign up. Deposit $10,000 and they give you $1,000. They must know that they're going to get that money back pretty quick.

gxti 16y ago
Lower tier FX brokers pretty much are bucket shops. See here for an explanation of some of the things that bad shops do: http://nondealingdesk.blogspot.com/2006/04/non-dealing-desk-advantages-and_21.html http://nondealingdesk.blogspot.com/2006/04/non-dealing-desk-...

_delirium 16y ago

That's a strange bit of unsupported dogma. Forex traders can also: c) engage in massive amounts of feedback-loop speculation, causing market movements. Particularly likely if it becomes common for random retail investors to engage in "game-like" forex trading--- you'll get the same sort of situation as with the dot-com bubble, with retail investors signing up to E*Trade and pumping up the value of tech stocks. Sure, they'll likely lose money eventually, but not before distorting a bunch of markets.

Perceval 16y ago

>Forex speculators don't cause currency collapses George Soros played a role in the collapse of the Thai Baht, during the early stages of the Asian Financial Crisis in 1997. He also personally caused the sudden drop of the British Pound in the 1992 'Black Monday,' which led Britain to leave the European ERM. People on eToto obviously will not cause this kind of damage. But it's incorrect to say that foreign exchange / currency speculation cannot cause a currency collapse.

kydoh 16y ago
Soros has also been on record to say that he wouldn't be able to do the same thing today given the massively increased complexity of the foreign exchange markets - things were different, even just ten years ago.
jarek 16y ago
It is important to differentiate between the immediate trigger and the underlying cause.
byrneseyeview 16y ago
Britain's strategies were unsustainable. Without Forex traders, such strategies would just be used more, leading to more economic distortion. In forex, as in other markets, you can't push prices further away from their real values unless someone else is going to do the same after you.