I was wondering if anyone knew how to tell if your broker trades against you? Is it possible to know or is it just losing traders who claim that? Hotforex states they are an stp but reviews claim differently, does anyone know?
If a broker charges you a commission they are almost certainly an STP broker. If they don’t, they are a dealer. If they are a dealer they are the counter-party to your trades.
What do you mean by a commision? Do you mean a bid/ask spread? or a certain dollar amount per 100k lot? Ive done some trading with TD ameritrade and wouldnt that mean that whatever I have profited they have lost?
A commission is always a fixed amount per lot traded; pay attention to the fact that most brokers merely state the commission for a lot, mini lot etc … this means you’ll pay twice: upon entering a trade, and again on closing it. If you enquire with a broker about his commissions, make sure you ask for ‘Commission on Round Turn’.
Independently from the commission a broker charges you, there is a spread between bid/ask, which you’ll have to include in your calculation of total cost per round trade, too.
A good ECN broker will have a combined Spread / Round Turn Commission cost of 0.5 pip to 2.5 pips on majors (variable spread).
Cheers,
O.