Arbitrage in Forex - who does this?

[JoeyWheelers]

Hi Everyone,

I would like to know how many here trades arbitrage? And I would like to know if the info I get from all around are true or false.

1. A lot of brokers are clamping down on those using arbitrage software and banning traders and not paying out.
2. Arbitrage is a lot of trial and errors as you try to find a combination of brokers.
3. In lieu to #2, you need to open an account with a LOT of brokers. But how many?
3. In lieu to #2, you need lots of funds. But how much?
4. And if you find those brokers, you need to keep them a secret or those brokers will put in some countermeasures to prevent arbitrage.
5. Arbitrage software is hard to learn.

These are the info I found around. Please feel free to chip in your experience. I think a lot of people would benefit from this info.

 

[LuckyMac]

Arbitrage is definitely hard to do, i had looked into it when i first began i think finding an edge and repeatedly using it will be a much better use of your time imo

 

[keezilla]

ive arbitraged for 8 years but it is very hard and expensive

 

[JoeyWheelers]

ive arbitraged for 8 years but it is very hard and expensive

Interesting. Could you tell us more? Like, how much capital did you lose and whether you were able to earn it back?

Did you already quit entirely?

 

[Sherverty]

A triangular arbitrage strategy exploits inefficiencies between three related currency pairs, placing offsetting transactions which cancel each other for a net profit. A deal involves three trades, exchanging the initial currency for a second, the second currency for a third, and the third currency for the initial. During the second trade, the arbitrageur locks in a zero-risk profit from the discrepancy that exists when the market cross exchange rate is not aligned with the implicit cross exchange rate. A profitable deal is only possible when a market inneficiency arises and execution times are small.

 

[JoeyWheelers]

A triangular arbitrage strategy exploits inefficiencies between three related currency pairs, placing offsetting transactions which cancel each other for a net profit. A deal involves three trades, exchanging the initial currency for a second, the second currency for a third, and the third currency for the initial. During the second trade, the arbitrageur locks in a zero-risk profit from the discrepancy that exists when the market cross exchange rate is not aligned with the implicit cross exchange rate. A profitable deal is only possible when a market inneficiency arises and execution times are small.

I know about dealing with inefficiencies and fast execution times but I didn't know about triangular arbitrage existed. How long have you been doing this? And I reckon you are subscribed to an expensive but fast internet plan?

 

[JoeyWheelers]

So far, these 2 are the most popular arbitrage software available in the retail market that I found:

DAAS Arbitrage
Western Pips P7

Anyone has experienced using these?

 

[Magnificent]

All I know about forex arbitrage is that it is very complicated and hard but at the same time it is said to be a risk free trading strategy. The banning of arbitrage traders by brokers is new information for me. Imagine you put in so much time and effort into learning along with your funds and end up being banned by a broker. That’s so depressing!

 

[JoeyWheelers]

All I know about forex arbitrage is that it is very complicated and hard but at the same time it is said to be a risk free trading strategy. The banning of arbitrage traders by brokers is new information for me. Imagine you put in so much time and effort into learning along with your funds and end up being banned by a broker. That’s so depressing!

Well, banning isn't the only thing. I've read some posts and confirmed them to be true in forexpeacearmy:

Some complained that ALL of their profits have been denied by the broker. According to the broker, they have detected that the said traders are using an arbitrage software. In fact, some people who said they are not using arbitrage software are also getting the same treatment because the way they trade mimics arbitrage. The story is true as both the traders are filing a complain against the broker and broker is filing a complain against the traders.

I just don't know who to believe.

Because as researched, a lot of brokers are also dishonest.

 

[Talisman]

Not me. I have never tried my hand at arbitraging in forex. And I don’t see myself going for that after reading this post about traders being banned by brokers for arbitraging. It sounds quite complicated.

 

[JoeyWheelers]

Not me. I have never tried my hand at arbitraging in forex. And I don’t see myself going for that after reading this post about traders being banned by brokers for arbitraging. It sounds quite complicated.

It is complicated. I just thought of making this thread to see if we can pull knowledge together from some here who have experienced it. The thing that intrigued me is that someone I chatted made lots of money with it with zero risk and zero detection from brokers. He mentioned he has been doing it for more than a year and doing it differently from the rest who has a high chance of getting banned. He doesn't want to say how he does it even if I pay him. He said, he learned it through lots of research and trial and error. He is not trying to brag or anything, he just want to say that there is a way.

 

[smart921]

Hi Everyone,

I would like to know how many here trades arbitrage? And I would like to know if the info I get from all around are true or false.

1. A lot of brokers are clamping down on those using arbitrage software and banning traders and not paying out.
2. Arbitrage is a lot of trial and errors as you try to find a combination of brokers.
3. In lieu to #2, you need to open an account with a LOT of brokers. But how many?
3. In lieu to #2, you need lots of funds. But how much?
4. And if you find those brokers, you need to keep them a secret or those brokers will put in some countermeasures to prevent arbitrage.
5. Arbitrage software is hard to learn.

These are the info I found around. Please feel free to chip in your experience. I think a lot of people would benefit from this info.

i've try arbitrage with mirror ea, so we could use another broker (2-3 brokers)

 

[paman]

So far, these 2 are the most popular arbitrage software available in the retail market that I found:

DAAS Arbitrage
Western Pips P7

Anyone has experienced using these?

I use Westernpips 7 , but it’s very difficult for work. Need good broker for arbitrage. and 98% confiscate my profit and return my deposit..

 

[Mohammadsaeid]

Hello and thanks for your good information. I have some experience in Arbitrage and I think you can read the Brokers' agreement befor you want to register and start trading and also you can communicate with their experts befor start.

 

[jose]

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