Hi All
I’m new to trading and wondered which broker offers the least slippage for opening and closing trades?
I’m looking to trade the major pairs, and would need a broker that opens and closes as quickly as possible.
Thanks in advance
Harry
Hi Harry,
Brokers with 0 slippage are market makers - they execute your trades instantly because they are taking the other side. If you want a good ECN broker with low slippage (as opposed to no slippage) try Vantage FX.
it is really hard to recommend any specific broker because all of them may execute your trades with slippage as it doesn’t depend on them but market volatility and trade volumes. I would suggest to test several trading platforms, for example Hotforex, Pepperstone, Oanda and FXCM to see which one suits you best.
Based on my experience I find Hotforex platform fastest among them even during volatility breaks and trading after news and other important events. But do your own due diligence to understand better how slippage works and when it occurs.
Don’t trust brokers that offer you no slippage. You have to understand that there is always slippage in ECN accounts cause price moves fastly. It’s the market. It’s normal. Maybe you’ll earn less on ECN but you’ll be able to withdraw your money.
Bollocks. A) Market makers with instant execution have no slippage (though they might requote you) B) ECN brokers are more prone to slippage (though the much lowers spreads tend to make up for it) C) Octa are a bunch of profit cancelling scammers and their ‘ECN’ model’s spreads are blatantly marked up
Exactly. The best you can do with ECN is find a broker with minimal slippage. I’m with Badem - have found Vantage to be pretty solid on this front compared to other Australian ECNs I’ve traded with.
I think a broker with very fast execution would have little slippage on trades. I always love the Profiforex mt4 platform for this. I can’t remember the last time I got slippage.
I guess slippage may occur during the news release sessions where the market becomes crazy so it is something that can’t be avoided but yet we always have an option not to trade or trade on as it is basis.
Yeah that’s why its better to avoid trading news for newbies if you don’t understand pre-news market sentiments, chose incorrect lot size or put SL too close/too wide, etc. There are too many factors that can significantly affect your news trading results.
Every news trade is a punt - manage your risk accordingly and you may survive!
Slippage refers to the deviation of the price from its expected price level. Some of the traders with whom I have traded which provides least slippage are roboforex, tallinex, olofx.
These are pure ecn brokers which provides direct liquidity from the LP’s. If there is any slippages with them it is because of market volatility.
try the broker’s demo account. While it will not give you actual slippage. You can work out liquidity or how often the price is updated. The more the price is updated, the better chance your order has at getting filled. It’s very important if you are scalping. It’s the biggest difference between a good and bad broker. (unless they are dishonest)
If you open an account and the demo is different from the real account, close it fast and move on. The demo should be the same feed as their real accounts, -slippage.
None of those brokers are true ECN brokers - all their spreads are quite obviously marked up.
Slippage is not due to volatility - it is due to a lack of liquidity as comstrader said - ie your SL market order is set to exit your long position (sell) at .9870 … but there is no one willing to buy til .9863 … as 9870 is hit, your broker does it’s best to ‘honour’ your stop: they would rather get you out at .9863 than not get you out at all, so your SL order is filled at the best available price <=> .9870 (.9863).
Slippage is something out of brokers control and the size of slippage is depends on how broker protect itself from market risks transferring it to the client. Try to open small positions (as they are easier to close and don’t trade during illiquid trading times).
That’s the only advices which seem reasonable for me.
I think it’s these ECN claiming brokers which have highest level of slippage, so you don’t need to just go with what they claim, it’s vital that we go with one who have proven that they are true ECN and it’s not all that tough to figure it out if we do some research.
Slippage occurs during the delay between a trade being ordered and when it is actually completed. Slippage often occurs at the time of higher volatility and large orders when there is no match for same price on the other side to make the trade possible. Whenever broker gets the best fill, he makes the trade possible at least slippage. To check the slippage of different brokers, start with demo account first.
Ha ha ha! you are doing it here again! This broker is fully scam! Wonderful execution time of 1 second for opning a position and more than 1 second at closing!
have you run any high frequency EA with them?
What a joke. Demo accounts have 0 slippage.
If you want 0 slippage find a market maker with instant execution - you will pay more in spread.
If you want the tightest spreads and don’t mind a little slippage - find a true ECN broker.
There’s always a trade off. Personally I find the the tighter spreads more than make up for the slippage.
The first advice is don’t trade at volatile time, slippages are certainly happen at those time and most brokers cannot manage it, some could have big slippages.
But I see some brokers as fxcm and hotforex could compensate for over-price. Not sure, but this is not rare.