I like trading the news before it jumps but lately have been experiencing heavy slippage on limit orders and stops, and also considerable widdening of the spread in the seconds prior to the release. (3 x normal is not uncommon). When i say heavy i mean 20+ pips on several occasions. Unacceptable.
So i am looking for recommendations from the forum (preferably based on experience) for brokers that contain the slippage and spread widening to an acceptable level when trading the news. Obviously some slippage is expected when trading highly volatile news releases (5 -10max) but there is slippage and there is taking the piss.
Please note this is not a thread to complain about whichever broker has done you wrong (although naming brokers in honest unbiased examples is fine)
Hi longandshort, I’d have to say that smart trade fx was wonderful for the first 3 months that I used them then I started noticing a bit more slippage. Hotforex was great for the first couple months also. From my experience switching brokers when trading news is business as usual. Most brokers tend to play nice in the beginning and start to act fussy once they learn your trading method. So if I had to pick 1 broker to add to your list it would be smart trade fx.
In your case, I will suggest looking at fixed spread brokers. At least you know that the price wont change at times of news release. Early in my trading career as news trader, I had most success with fixed spread brokers. Otherwise brokers with low spread operating mainly on ECN model are good too. In addition, I will also advise you to think about a VPS that can reduce tech-related glitches and most importantly improve latency. Let me know if you require a recommendation for good VPS that I use. Otherwise, brokers also offer thier own versions of VPS (keep an eye on that). Lastly, I would rather prefer a broker with an ECN model (or STP) with no requotes. Also try to trade news with a large established broker due to frequent back-end platform problems encountered by some new brokers. Hope this will help.