So I finally managed to build myself a profitable EA (over three years in back-test) using MB trading as a broker. I go to try it out in their demo account and low and behold, I get a message saying ‘Error code 149 (“Hedge is prohibited”)’ which puts a stop to me using MB trading.
I’ve tried looking at Oanda which seem excellent on all fronts, except their spread, which is huge (mb trading today, EURUSD spread = 9 pips, oanda = 14!!!).
Does anyone have a recommendation for a decent UK based broker with tight spreads which permit hedging and EAs and don’t require you to deposit a massive amount of money just to get started (I’d really like Oanda’s policy on that, trade with $1 etc)?
ummmmmmm, I have oanda and it’s been a while since I saw their spread that high unless it’s around major news releases, most of time it stays around 1.4. Oanda and MBtrading are 5 digit so make sure you’re calculating correctly by subtracting the last 2 digits. Well you’ve got Dukascopy and fxpro which hear are very good.
I’m just subtracting the Bid from the Ask (then dividing by Point) - that’s the true cost of trading, not their listed spreads which are simply the amount they ‘claim’ they are adding on. I’d like to know where they get their reference prices from, actually?
If your keep to uk brokers, then may be hard to find one to meet all your criteria. Have a look at Alpari MT4, although similar spreads to Oanda, spreads are tight on their ECN account, but it is MT5 (no hedging full stop) See if Vantagefx uk allows hedging. Does it have to be UK broker?, check out some of the Australian brokers.
good site for seeing live spreads from a selection of brokers here
I knew you had a misunderstanding about 5 digit brokers! The last digit on 5 digit broker is a pipette not a pip. There are 10 pipettes per pip so if you see 25 pipettes it means 2.5 pips.
… and yes, most 5 digit brokers quote their spreads in pips and not in pipettes: for example if their lowest spread is 3 pipettes they will quote it 0.3 pips.
It is completely true also with the JPY pairs and here’s why: 1 yen is the smallest unit as 1 cent is the smallest unit in US. The Yen is not devided in cents like the USD, EUR, AUD etc. If you go to Japan and pay something with one yen ( which I doubt that they have anything priced that low) you will never get any change back.
