Gandalf Review of:
http://www.forexpeacearmy.com/public/review/www.ikon-royal.com

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Nick D. from The USA Says,
"Last month I opened a gbp/usd hedged trade with Ikon-Royal and without notice they closed my trade on 5/18/2009. I spoke to Ted who said he was the manager and he said he closed the trade because he could and he did me a favor by stopping the swap from adding up. I believe the reason they closed my trade was to keep me from turning it into a profit. Because of them closing my trade I lost 14k. The new hedgeing rule states that you can leave a hedged trade open if it was opened before 5/14/2009. This is nothing more than stealing. If they can close my trade for no reason then they can close any trade. This is a scam and they are nothing but crooks. I recommend that you stay as far away from this broker as you can if they can steal my money they will steal yours."

Advice from Gandalf The FX:
Your Hedge (which is actually a 'Straddle Position' and not a Hedge) cannot yield any profit - you buy X and sell X; so no matter what, you're NET ZERO on earnings, minus the spread.
Furthermore, the 'hedge' costs you money to keep. The cost-of-carry, aka "Swap" or "Roll Over" is always at a net Negative no matter what position it was......so your now losing money day by day.
The Broker did you - and him, a favor:
For You: He limited your losses. You CANT turn a hedge into a profit.....it simply cannot be done. A Hedge (Straddle) is useful during times of high volatility and uncertainty in the market, and if your looking for a SHORT term solution to keep your swap under control...the trick here is to know when to 'Drop the Losers' on a price movement, which are easier to get rid of than the winning trades.
For Him: They can proceed to clean their book from your toxic positions....which brokers will do when there is a margin or liquidity issue (which may be technology related)."

Advice from Gandalf the FX:

Your Hedge (which is actually a 'Straddle Position' and not a Hedge) cannot yield any profit - you buy X and sell X; so no matter what, you're NET ZERO on earnings, minus the spread.
Furthermore, the 'hedge' costs you money to keep. The cost-of-carry, aka "Swap" or "Roll Over" is always at a net Negative no matter what position it was......so your now losing money day by day.
The Broker did you - and him, a favor:
For You: He limited your losses. You CANT turn a hedge into a profit.....it simply cannot be done. A Hedge (Straddle) is useful during times of high volatility and uncertainty in the market, and if your looking for a SHORT term solution to keep your swap under control...the trick here is to know when to 'Drop the Losers' on a price movement, which are easier to get rid of than the winning trades.
For Him: They can proceed to clean their book from your toxic positions....which brokers will do when there is a margin or liquidity issue (which may be technology related).

            Gandalf The FX