Hey, New to the site.
I was wondering- I plan on moving from equity trading to forex soon and have been prepping myself psychologically and otherwise. One question i have is about brokers who advertise fractional pip spreads, are they worth looking into- or is there something negative they don’t advertise about their programs (poor trading platforms, dishonest spread reporting, w/e).
If anyone has had experience with these type of companies (i think FXCM is one of them) please share your thoughts.
Hello danjapress! Look, the best I have seen and used is ac-markets. They now have fractional pip quotes and spreads of 2.8 pips for EUR/USD for the standard account. I am also very pleased with their platforms since they are very easy to work with. Besides, since acm owns their software, you hardly have any technical troubles. If you invest on forex, you ought to give them a try�I�ll recommend you take a look at their web site.
GOOD LUCK!!
rather than saying this one and that one broker is “da best” i’d say in all honesty that: it’s an added plus that the broker offers fractional spreads - however - if you’re looking for the (most times) lowest spreads - it pays off to look for an ECN broker instead - Only disadvantage you might say is they often need at least 5000 usd account balance to start with.
But don’t choose a specific broker over 0.x spread difference - then it’s better to compare brokers over a range of assets like 1) segregated accounts (Y/N) 2) Offer scalping (Y/N) 3) allow to trade during news releases (Y/N) … etc.
Then you’ll hopefully end up with a winner:-)
Good luck!
I have to agree. Not many brokers allow scalping and news trading. I have been testing demos and live accounts and have been booted off with closed accounts by brokers trading against me. Recently I found a broker with ECN STP pricing.
Brokers with dealing desks DONT WANT YOU TO WIN !!!
Many claim they dont have a dealing desk but very few are actually true.
My experience has shown: open a small live account and see for yourself. Live accounts show you the true trading conditions. Slippage, requotes, bad execution. You can always add more funds once you are happy with the broker conditions.
The broker I am with right now is truelly STP with no dealing desk: how do I know?
- Never suffered a requote
- If the price moves against me or in my favour, I get filled at market price. Many times when scalping, by the time the price is filled, and trade is in the journal, I am in profit due to the fast price movement. Never disallowed such trades.
- They allow orders within the spread, this is great for scalping systems
- No restriction on limits or stops. Can be as close or as far from the market price as you want. Most dealing desk brokers specify 10 pips stop away from entry or the standard MT4 15 pip trailing stop. Pronetfx allows 1.5 pip trailing stop. This is great if you want to straddle the news releases.
- With their fractional pricing, I have seen spreads as narrow as 0.2 pips. I dont think brokers work for 0.2 pips profit on any cross especially the pound crosses. I have seen 0.2 pips spreads on GBPUSD and GBPCHF, AUD JPY, CHFJPY, CADJPY and the majors. So how does pronetfx make their money, they simply charge a ticket fee. To me thats makes me feel better. Infact, they want you to win and scalp and news trade, they make their money from the fees you pay them. If you lost your account, they lose a client who is paying them ticket fees. They want you to win and carry on trading with them.
Pick a broker and make sure he covers the basic requirements:
No requotes
Allow scalping
Allow News trading
Honours stops
No False spikes and stop hunting
TRUE interbank spreads ( with fractional pricing )
Happy hunting