If you are new to Forex trading, fancy about trading in mini account with only $200 or so. Here is something to show you. This is not something new, seasoned Forex trader should be familiar with this.
430am ET, we have U.K Trade balance report, I decided to capture the changing of spread of GBP/USD and GBP/JPY provided by one of the broker I am using.
Look at that, the spread actually jumped from 6 pips (2.8 pips for GBP/USD) to 20 pips, and after 1 minute, it went back to 6 pips (2.8 for GBP/USD) . This problem has been widely discussed/complained in forums. But, there is nothing much you can do if you choose to trade with bucket shops (market makers)
This is just one of the examples, there were complaints during the last NFP (Non Farm Payroll), where spread actually went up to 200 pips!
Look at that here
So you wonder, why your stops were taken out? Maybe you need to have a closer look on this issue. This another reason I am planning to move to ECN broker after growing my small account.
Hi Gav,
for starts, why not try efxgroup or mbtrading for an ecn broker. The spreads are tight and the fills are always good, i have not had a reqoute since forever. Try demoing it for a while, the platform can be a bit edgy but you’ll be fine once you know the drills.
jest
Hi Gav,
for starts, why not try efxgroup or mbtrading for an ecn broker. The spreads are tight and the fills are always good, i have not had a reqoute since forever. Try demoing it for a while, the platform can be a bit edgy but you’ll be fine once you know the drills.
jest
Jest,
I am looking at EFX group now. In fact, I will start trading with them soon.
I have been with my current broker for about 2 years. No major problem , just make sure I do not trade during news released period, which I never did.
But, after all, when I think about I am actually trading with bucket shop, that makes me feel uncomfortable.
Jest,
I am looking at EFX group now. In fact, I will start trading with them soon.
I have been with my current broker for about 2 years. No major problem , just make sure I do not trade during news released period, which I never did.
But, after all, when I think about I am actually trading with bucket shop, that makes me feel uncomfortable.
Oh i forgot to add one more in the list. Try to keep Aarontrade in your radars once you have a large enough account. They’re the likely benchmark along with Manfinancial.
okay no more flaming.
Gd day!
Oh i forgot to add one more in the list. Try to keep Aarontrade in your radars once you have a large enough account. They’re the likely benchmark along with Manfinancial.
okay no more flaming.
Gd day!
Yeah, another vote here for EFX.
Tedders
Yeah, another vote here for EFX.
Tedders
haha, well ecn brokers does have time when their feed go hay wire too, esp on big news like nfp and rates. The qoutes spread may stay near but the price data compared to most brokers may differ. Also i’ve seen times where the price go haywire. They contribute it to the flurry of orders that comes in during news times since the was alot of speculation, but the haywire part does not last for more than 10 secs.
I guess there’s no such thing as a perfect broker. Im currently running two accounts one from a bucketshop broker called fastbrokers and the other,efxgroup. Comparing the performance of both, i’d say efx has a much much better execution platform but their price feed seems to be qouted 1 or two pips higher all e time, proly thats why they can afford to give you low spreads.
regards
jest
regards
jest
haha, well ecn brokers does have time when their feed go hay wire too, esp on big news like nfp and rates. The qoutes spread may stay near but the price data compared to most brokers may differ. Also i’ve seen times where the price go haywire. They contribute it to the flurry of orders that comes in during news times since the was alot of speculation, but the haywire part does not last for more than 10 secs.
I guess there’s no such thing as a perfect broker. Im currently running two accounts one from a bucketshop broker called fastbrokers and the other,efxgroup. Comparing the performance of both, i’d say efx has a much much better execution platform but their price feed seems to be qouted 1 or two pips higher all e time, proly thats why they can afford to give you low spreads.
regards
jest
regards
jest
Jest,
The main issue with bucket shop is not only spread problems. It is the fact that they are sitting right in front of you and trade against you.
Widening spread during news time might hurt, but not so much to me since I am not day trading with minutes chart or scalping.
Jeez, the UK trade balance is a third tier indicator as well…welcome to the crazy world of fx, the wild frontier in the financial market.
And there I was, just about to say Oanda is pretty good, but that’s exactly where your screen grabs come from! I think Oanda started getting gamed by news traders in recent months, so they have resorted to widening the spreads to crazy levels to keep them away. Don’t know if it is working. Personally, I like Oanda for anything beyond the 10min trade … I really don’t see anyone on the other side, trading against me, as you might find with some other places. Still, I’m sure there is a broker out there for everyone. Just start with the reputable ones and work down. There are some jokers out there who even claim to offer ‘price freezing’ for a few seconds…I mean, come on, really. A few years ago, brokers would offer fixed spreads with no slippage guarantees. They lost a lot of money. Now, the shoe seems to be on the other foot, but things are getting better. I hear good things about the likes of EFX. Myself, here in the UK, I might try my hand at a financial gambling web-site next week.
ps – I’m still watching cable flirting around the 2.0 handle. Next week is packed with economic data that could well provide the impetus for a break through. If it happens, it would certainly hit the newspaper headlines here in the UK.
Jeez, the UK trade balance is a third tier indicator as well…welcome to the crazy world of fx, the wild frontier in the financial market.
And there I was, just about to say Oanda is pretty good, but that’s exactly where your screen grabs come from! I think Oanda started getting gamed by news traders in recent months, so they have resorted to widening the spreads to crazy levels to keep them away. Don’t know if it is working. Personally, I like Oanda for anything beyond the 10min trade … I really don’t see anyone on the other side, trading against me, as you might find with some other places. Still, I’m sure there is a broker out there for everyone. Just start with the reputable ones and work down. There are some jokers out there who even claim to offer ‘price freezing’ for a few seconds…I mean, come on, really. A few years ago, brokers would offer fixed spreads with no slippage guarantees. They lost a lot of money. Now, the shoe seems to be on the other foot, but things are getting better. I hear good things about the likes of EFX. Myself, here in the UK, I might try my hand at a financial gambling web-site next week.
ps – I’m still watching cable flirting around the 2.0 handle. Next week is packed with economic data that could well provide the impetus for a break through. If it happens, it would certainly hit the newspaper headlines here in the UK.
Hey Caravaggio,
I always enjoy reading your comment. Someone who really works from 3500 to 12K now.
Back to the time when I first started Fx trading, I heard good words of Oanda, and decided to try it out. I am still with Oanda, because I like the possibility of playing with position sizing in my small account.(In fact, I am starting with similar account as yours, I’d like to see if I am able to grow it as well 🙂 )
Maybe I should not say Oanda is actually trading against us, but I just want to acknowledge the fact that I am trading in “their” market, Oanda’s market.
I am watching Cable closely, I will still trade it next week.
Hey Caravaggio,
I always enjoy reading your comment. Someone who really works from 3500 to 12K now.
Back to the time when I first started Fx trading, I heard good words of Oanda, and decided to try it out. I am still with Oanda, because I like the possibility of playing with position sizing in my small account.(In fact, I am starting with similar account as yours, I’d like to see if I am able to grow it as well 🙂 )
Maybe I should not say Oanda is actually trading against us, but I just want to acknowledge the fact that I am trading in “their” market, Oanda’s market.
I am watching Cable closely, I will still trade it next week.
Jest,
The main issue with bucket shop is not only spread problems. It is the fact that they are sitting right in front of you and trade against you.
Widening spread during news time might hurt, but not so much to me since I am not day trading with minutes chart or scalping.