Brokerless

[MrFantastic]

Hi there,

I'm new to this group and new to trading to I googled a lot about Brokers and trading platforms. I found a platform that does not use brokers. Should I use brokers or go with this platform without brokers? What do you recommend? Experience?

 

[Enivid]

A platform that does not use brokers? That sounds fishy as hell. Trading Forex without a broker has been discussed earlier in this thread:
https://www.earnforex.com/forum/threads/how-important-to-have-a-broker.22109/

 

[MrFantastic]

Well I speak about traders with experience. Because no matter what, brokers eat your money. The platform offers guidance and education to. Ok, if you never traded before you should never even start with a broker if you not done some homework about trading. Im so want to post a link to this platform but Im scare to get thrown out because somebody think Im spamming. If u could go there and read for your self you probably change your mind

What I mean is that with support and education from this platform Im leaning to go with Brokerless. I dont want to give unknown people access to my money. But that is only my opinion

 

[Enivid]

Frankly, what you have written so far does not make much sense. You can go ahead and post that link. At worst, it will be just removed.

 

[MrFantastic]

Im not so good at explaining things so maybe thats why everythings not making sense. Read for your self

https://www.spectre.ai/

 

[Enivid]

I would not call that a "broker-less" trading. Spectre.ai is a sort of a crowd-funded broker with some safeguards against usual abuse of traders. It could be called truly "broker-less" if trades were matched directly between traders and not versus a liquidity pool.

As for the current state of affairs, their trading platform is subpar compared to trading platforms offered by normal brokers, and their trading conditions are a poor match offered by ECN brokers (if we talk about spot Forex) or prediction markets (if we talk about FX binary options). Meanwhile, using a regulated broker offers enough protection against the brokers' disadvantages touted by Spectre.ai.

 

[MrFantastic]

I would not call that a "broker-less" trading. Spectre.ai is a sort of a crowd-funded broker with some safeguards against usual abuse of traders. It could be called truly "broker-less" if trades were matched directly between traders and not versus a liquidity pool.

As for the current state of affairs, their trading platform is subpar compared to trading platforms offered by normal brokers, and their trading conditions are a poor match offered by ECN brokers (if we talk about spot Forex) or prediction markets (if we talk about FX binary options). Meanwhile, using a regulated broker offers enough protection against the brokers' disadvantages touted by Spectre.ai.

Ok, you said it. (It could be called truly "broker-less" if trades were matched directly between traders)
If you read everything (you obviously did'nt) you have two choices...trades can be P2P or against the liquidity pool.

There you go. It's Brokerless

 

[Enivid]

Not only did I read quite a lot about Spectre.ai (I am pretty active in crypto industry), but I have also tried trading on Spectre.ai. I don't always read whitepapers. But when I do, I prefer to read them carefully. As you can see in Spectre's whitepaper, trading operations initially are executed only against the liquidity pool:

Lastly, SPECTRE, despite its name, is not an exchange in the classic sense in that it’s liquidity pool acts as the counterparty to all trades. This, in our view, is advantageous when compared to traditional prediction markets on the blockchain as these have no liquidity pools and are dependent on a large volume of users in order for traders to be able to enter and exit trades in a highly liquid fashion. SPECTRE’s model, by comparison, works with as little as 1 user or millions of users. Over time, as the SPECTRE user - base crosses a few thousand active traders, it may be possible for the SPECTRE’s conditional liquidity model (CLM) algorithm to match most if not all trades perfectly and thus truly become an ‘exchange’ in the classic sense; until then, the perpetual liquidity model serves the purpose rather efficiently. We discuss this and balance sheet/liquidity pool protection, next.

According to their roadmap, the stage 4, which will begin introducing order matching, will not start until the next year:

During stage 4 which is Q1-Q2 2019, we will be able to not only introduce order matching capabilities (e.g. the system can find counterparty trades amongst traders themselves instead of making SPECTRE’s balance sheet the counterparty), but a D-App Store, which fosters open-source development of a range of financial and sports betting decentralised applications which ‘plug-in’ to the SPECTRE liquidity pool.

Conclusion: It is a good idea, but for now there isn't much to compete with trading Forex via brokers or traditional broker-less trading (via exchange).

 

[MrFantastic]

Apectre have p2p as well however broker-less means the broker doesnt have access to the liquidity pool and cannot stop payments. If you trade using a wallet account on Spectre you are trading in a way where we cannot stop your wins. We don't offer Spot FX yet so there is no point in comparing us to FX brokers. As for 'prediction markets' which platform is better than Spectre please?

With that said, everyone has an opinion and we all have different ones. Thank you for
your opinion and feedback.

Have a good one

 

[Enivid]

Apectre have p2p as well however broker-less means the broker doesnt have access to the liquidity pool and cannot stop payments. If you trade using a wallet account on Spectre you are trading in a way where we cannot stop your wins.

Brokers which are regulated in decent jurisdictions use segregated accounts for traders' funds.

As for 'prediction markets' which platform is better than Spectre please?

I did not write that prediction markets have a better platform. I mentioned prediction markets in relation to the trading conditions. PredictIt (political events), NADEX (Forex), orakel.faz.net (everything) - all function in a fairer manner than Spectre.ai does currently. Perhaps, it will change after the platform development is completed, but for now there is little point in using it.