I get your point, but less-liquid pairs (like the euraud) are often going to have substantially wider spreads, just like more volatile pairs need wider stops. If you’re using a fixed pip stop, you may want to stick with the majors.
And if this is demo, just find a new broker. It does sound a little weird to me, and I’m used to variable spreads. Another choice is to calculate the widening into your SL so that when things change, you’re not going to get taken out.
Yeah I realize EURAUD is less liquid, but 103 pip spread, sheesh. But yeah, your advice to stick to just the majors is wise.
I’m not keen on really expanding my risk to 100+ pip stops… too rich for my blood in case something does move against me. I’m just surprised that it sounds like I’m the first person in the world using an Alpari UK demo that has noticed this…
Hmm, how many decimal places is the price? 4 or 5? Are you sure you are not including a pipette as a real pip?? Remember the 5th decimal place is 1/10 of a pip.
Alpari is a decent broker from what I’ve heard and no way anyone would trade with them with spreads like that. 10.3 pips i can see but not 103… I have EURAUD right now at 6.5 pips spread.
You should try other broker then.
They are a good broker, I think its a simple misinterpretation of the spread.
Current price at ODL 1.44690/1.44759 … the spread here is 6.9pips ATM, its continually fuctuates slightly
Cheers
5 decimal places Cdawg… the spread was a whopping 103.5 pips, I’m sure of that. Might not have lasted for long, but still enough to blow a LOT of good trades right outta the water.
The spread currently (6:48 NY time) for EURUSD is 2.4 pips. Nothing wrong with that… but it’s the spikes to 103.5 that hurt. That’s no environment to trade in.
I’ve never seen spikes like you’re describing.
Here’s an FXCM tick chart for the period around 5pm EDT today.
Two spikes occurred in the spread, in the first 6½ minutes after 5pm.
The largest spread was 5.5 pips, which represents a 3.1-pip spike above the pre-5pm average.
Thanks for that Clint, those kind of spikes I could live with. I don’t think I’m too fussy on FXCM however - seems their spreads are relatively high compared to others.
Shawn, post up a screenshot.
Maybe someone seeing the pic can explain it.
I’m in the camp thinking pips are being confused with pippettes,which would make that 100 pip spread actually a 10 pip spread. That would be a lot more in line with normal spread rates…
But hey… I could be wrong;)
I frequently am:p
Are you sure you have the decimal in the right place? post the bid and ask prices when you see these spreads.
shawnh,
I have seen the EURAUD hit a spread of 297 pips once. It was NFP on 5th Feb this year. I was grid trading and was 100% hedged and still hit a margin call.
Lately Jade(not the Feb culprit) has been experiencing spread spikes on the EURCHF at 5pm EST. I saw a spread of almost 30 pips the night before last and almost 15 last night.
OK, I’ll try to post a screenshot of the next big blatant spread spike. These are full pips, not pippettes… I’m a bit of a newbie but I do know THAT much!
LOL! Okay:D Duly noted!
Interesting observation for sure.
I’ve noticed that happens to an extent on my my futures accounts, but nowhere near that size in spreads. Like 5 to 8 pips depending on the lot sizes I’m trading. But that’s only for the short time in between the NY session close, and the AU session open. Maybe an hour or so. Once AU opens, the gloves come off, and the spreads come down.
I have to say, in all honesty the futures have been a bit easier, because it’s a straight commission, instead of a spread to fight.
The commission on my live futures account with PFG Best works out to an average of 1 pip, no matter the time of day. The only problem with futures is, you need an account that can sustain full sized lots. The minis need 2 pips, and the micros need 10 pips to cover the commission on a trade, as it stays the same no matter your lot size.
I’ll watch my other accounts to see what happens. I trade the EU/AU often, and have never noticed such a large difference in the spread.
5 pips, MAYBE, but 100? Huh uh. Hasn’t happened.
BTW, did you catch the EU/AU drop today? Was a sweet ride;)
And FYI, my live brokers are the aforementioned PFG Best, and also, GCI. I have a another mini account on IBFX, and have not seen that sized spread there either. This is a curious bit. I’ll be paying attention;)
Cheers!
I use Oanda and FXCM both live accounts and FXpro demo I have never seen anything as extreme as you are describing I would look at using a different broker.
I am going to be trying different brokers guys. Does anyone have any experience with IamFX? Good spreads and I like that they set you up with a free VPS… but I’m concerned how safe my money will be with them. I’ve heard lots of horror stories about brokers taking clients money, or dragging their feet on withdrawals. The think I liked about Alpari was that they are “established” so my money should be nice and secure… but then their spread spikes turned me off.
I’m digging up an old thread… necromancy skilz. so e/u spread right now 17:44 Eastern time is 1.1602 to 1.1612
Spreads widen every day at 5:00pm Eastern. Oanda E/U
There is also something else that happens at that hour that seems significant. Anyone else spot it?
Hi, same problem. My SL was literally 17 pip away and I got stopped out. And my second position was closed like 9 pips away from my SL so I had almost 2x bigger lose. I use MEX Exchange, and usually they have 0.2-0.7 pip spread.
I used XTB, and now I am using MEX Exchange and it happened too. My SL was hit and price was 16 pips away… Usually I have 0.2-0.7 pip spread…
I just typed this same question into goggle and it brought me here…i just recently switched brokers, I now one of my scalping accounts with Oanda and have definitely noticed it. EVERYDAY…on top if the 13-28 pip spreads (which i have the lower spread plan in exchange pay a commission because I trade larger lots in a short time frame…scalping) those pairs also flash up or down. I assume they are using their retail clients (us) liquidity to process some institutional size orders for big institutional clients or their own hedge. It’s absolute horse ■■■■. Im forced to widen my stops to the daily ATR to avoid getting stopped out and also manage my trades more frequently during london AU and JPY sesh. I know they are a dealing desk so if a heavy unbalanced weight of their retail clients go one direction on a pair (which happens all the time due to most retail traders getting the same fundamental news exposure and using the same outdated. TA indicators intended for the equities markets) the marker makers buy the other side to provide the juice. And then drink the juice. Have you ever looked at the client sentiment data vs.the direction the price usually moves. Almost exactly a 1 to -1 correlation. That’s how the big fish eat. On the retail guppies. Use what you have observed to your advantage. Get creative. It’s not just oanda, they are just the most noticeable. Its unfair but it is beatable. Be wishes!!!
