Dear Friends
I am not sure if someone already asked this. Please suggest.
I am a newbie and want to start trading with $500. Should I go for ECN or STP brokers or Market Makers?. I am confused.
I would like to trade using small volumes like 0.05 or 0.08, will an ECN account help? Which is best ECN brokers that you suggest and most of the brokers claim that they are ECN but they are not.
Avoid market makers, go with ECN or STP broker only. Here is some list, dunno how realible it is tho: ECN brokers list | ECN/STP Forex brokers
Do not avoid market makers. Open accounts with all kinds of dealers and diversify.
-Adrian
I think you should go with ECN account. Since you’re new, start with a best condition first real account are crucial thing. I use several broker account type, as for ECN you had to try with Tickmill, their ecn account type start with microlot ( 0.01 lot), with 500 usd you’ll meet their minimum deposit requirement. And i also suggest start with daily trade entry system, dont hold your entry position too long especially when at negative condition.
Following the CHF fiasco, market makers actually aren’t that bad anymore. They’re usually a bit more expensive to trade with. However, you should be safe from negative equity if there’s a black swan event.
Ontario,
Thanks for your reply. It is very helpful. Is Tickmill really an ECN broker? If yes I will check with them.
ECN/STP brokers are the past because you will experience a fast and transparent execution . And there will be no experience of manipulation of quotes that is most traders go for them. Though you can still try others it all about preference.
im having tough time finding one that takes traders from the us and one that i can trust with my trading capital
that’s it’s really difficult to discern true ECN from fake, it is a matter of experience and broker testing
and I had almost 2 years experience with Tickmill ( formerly armada markets backthen ). as I already tested trading system with several pairs, at different market situation ( market session, news event, etc ), overall their trading condition are good for scalping and intraday trading system.
FXCM: Forex Trading Spreads As Low As 0.2
Take a pick
Note: Had to update this list since 3 brokers I had in here, even though their physical address were in the USA, they were not registered to accept US clients. Go figure.
Just a quick note to add, quite a few brokers who state ECN accounts are not true ECN accounts in the real meaning. What they mean is ‘ECN Style’ accounts. Do you really think a broker is going to pass anything less than one standard lot (100,000 units of a currency) to the inter-banks for execution or their liquidity providers - the answer is of course not! They will try to settle the trade in house by matching it up with another opposite trade from their client pool - aiming to achieve a net exposure of zero risk for the broker.
If you really care about your capital and you have more than a few thousand bucks you wanna trade I would suggest Interactive Brokers or CitiFX.
IB is diversified beyond just forex and CitiFX is the worlds largest forex broker.
IB is probably one the best brokers out there but their platform is kind of weak or at least it was a couple of years ago, I do recommend them though if you buy ninjatrader.
It all depends on how you trade to be honest.
Personally I use tradingview for all my charting and then afterwards I place my orders at IB.
I looked into tradersway cause they have ct trader. I opened demo and saw they didnt use ny close so i clicked on live chat and explained that I opened demo and might switch tot them but I wanted ny close.
He told me I have to change the server time. I asked him to what and was told to goggle what utc time should be for ny close. not gonna switch to them from oanada. Im still looking
Yes they offer direct market access (at least as they claim). Try their demo first before depositing any funds there. Overall it is a good broker.
citifx min act is 10000 i only keep couple 1000 less than that dont feel comfortable having that much in forex act. I thought I heard some bad things about IB but not sure. I was looking into tradersway but Im unsure. Im still looking but at a dead end I think.
You probably heard they lost abt 100m during the SNB move which is correct unlike FXCM they had far larger reserves than that so they had no issues.
To put it into perspective when they announced the 100m loss I believe their stock dropped abt 4%, FXCM stock dropped 90% when they announced their loss.
You mean Sidney open and NY Close so you get 5 daily candles every week
You should becareful with tradersway, if they go belly up it’s goodbye to all of your funds. Plus I’ve heard their swap fees are insane so if you’re planning to be swing trader you’re going to be killed with hight swap fees from them.