Are there any brokers that give you the price you see when you submit an order? That is, they take a loss with negative slippage and/or a profit with positive slippage.
I just saw an FXCM add that claimed that very thing. I am sure it goes both ways so you would lose if the slippage was in the brokers favor. The difference is they say they will honer trades that slip against them. Might be worth checking out. I have not had much of a problem with slippage at FXCM or Oanda. For that matter Oanda has closed trades that are slipped my way as well. Now this does not happen often so I would not use this one thing as the reason I chose one broker over another.
Thanks for the quick reply. FXCM is not very trusted, though, and not only because it’s a market maker…
Hi Mr Mormon,
FXCM uses No Dealing Desk forex execution (straight through processing). This means that FXCM is not making a market for forex transactions. Every forex trade is executed back to back with one of multiple banks or financial institutions, and FXCM’s compensation is a mark-up which is added onto the spread. The mark-up is essentially a commission. FXCM’s revenues are driven by volume rather than from customer losses such as can happen when you trade through a market maker or dealing desk broker.
Slippage on trades with FXCM is possible since your order is filled based on available liquidity being offered by the banks and financial institutions. However, an advantage to trading with FXCM is that you can also experience positive slippage on your limit and limit entry orders. The only way a broker will be able to offer no slippage is if the broker (market maker) is controlling the environment through which you are trading and determining pricing and liquidity; however, this means you’re also subject to the conflict of interest that goes along with the broker controlling the trading environment.
-Jason
I know there’s slippage; I’m wondering who would offer to give me (on a demo account) the (e.g.) eur/usd I ask for and take the slippage loss and/or gain instead of me.
A demo account will probably work flawlessly without slippage regardless of the broker you register with since the orders are not being executed against actual liquidity. Therefore the order will go through at the price requested since the demo can’t simulate slippage.
-Jason
I experienced plenty of slippage in my orders in the ECN Dukascopy’s demo.
That is actually quite strange, because they’re a decent broker.
I would think a ‘decent broker’ would have a demo account just like a real account, and therefore have slippage like in the real market. What do you mean?