I trade during high-impact news events like CPI, NFP, PPI, and others with ICMarkets. Everything is working fine and I’m making profits.
ICMarkets allows trade execution even 1 second before the news release, which is great. However, during news time, the market becomes extremely volatile and sometimes creates large price gaps. Because of this, I occasionally end up with a negative balance. Unfortunately, ICMarkets does not offer negative balance protection for clients outside Australia.
Can anyone suggest a good forex broker for news trading that allows fast execution (1 second before news) and provides negative balance protection?
Yes, you will. Almost everyone does, if they try to trade the news using CFD’s, for good reasons which possibly you may not quite have thought through, if you’ll forgive my saying so.
The truth is that retail CFD trading and news trading don’t comfortably or safely go together at all.
Your trades aren’t in a market, they’re just bets against your own “broker”. If you could actually do it profitably (though almost nobody does in the long run) how long would the broker let you take their money for? whatever they say, they can’t realistically offset or “ECN” or “STP” your positions to an LP, with news trading, simply because then THEY would effectively be the party trading without the stop-loss instead of you!!
The following few posts, between them, will tell you what you really need to know on this very simple subject. I’m tempted to say “Ignore them at your peril!”
The best (least bad) one would be a futures broker. Any one. They’re all on your side rather than against you.
The next-best (theoretically good) one would be any top-regulated forex broker that will give you both guaranteed stop-losses and guaranteed fixed spreads.
You absolutely do need both.
Guaranteed stop-losses, because otherwise you’re effectively trading without one, just when it matters, as mentioned above and in every serious thread where it’s discussed.
And guaranteed fixed spreads, because otherwise they just widen the spread to whatever they feel like, to prevent you from winning.
You do have to pay extra (on the spreads) for both those things, obviously, but there’s no other way to do it safely in the long term.
Not only is negative balance protection not the answer, but I really advise you to look instead for some other trick or short-cut, not news trading. The chances of news trading working out for you in the long run aren’t just close to zero: they are zero. To be slightly blunt (sorry!), it’s kind of concerning that someone who’s been here for years is even asking about this. Apologies for being the bearer of bad news, @shanmugapradeep , but this plan honestly isn’t the solution to your trading problems. Sorry.
Or “can anyone suggest an unregulated broker who will simply allow me to take some of their money, time after time, and never take any steps to prevent that from happening”? You seem not quite to understand what a “broker” is, in the CFD context, Shanmugapradeep?
Hi, firstly I strongly recommend you double check all the information you see here with a reliable source, specifically the comments you get form @SchmaltzHerring , otherwise you will end up having your money stolen by a fraud broker. he is advertising a future broker which doesnt provide safe payment methods. For news trading what you must look for is a broker with negative balance protection. The brokers that I work with do not accept news trading, also you must check for the spread when news are released.
talking about the false information that user gives, a lot of traders prefer Forex brokers because they’re just more accessible and flexible. You can start with a small deposit, use way more leverage (compared to future broker which do not let you enter big games), and you don’t have to worry about exchange or clearing fees like you do with futures.
No, They have multiple subsidiaries. My Account is with https://www.icmarkets.com/global/en/company/regulation which provide regulation from Seychelles not Australia. For AU they have different website https://www.icmarkets.com.au/en/ and they do not allow signup from outside of AU.
So, there is no true CFD broker which provide Real Market Execution like Futures or Options?. Means whole CFD industry is scam?
Retail CFD is a not market execution then what is the solution?. I did 5 news, all went good and profitable and they cleared negative balance left within upto 500$ but recently, 6th time i made again profit but this time also in one of the account it went negative balance of 1400 USD and they are not clearing.
How can i trade News to real forex market if Retail CFD is not solution?
You mean this one https://ninjatrader.com/futures/ ?
Obviously you haven’t even clicked on the links above and seen these words (which I’ll now quote directly for you): People think they can do it, and say so on forums. Everything goes nicely for them the first four, five, six times they try. Then BANG - the seventh time; margin call, no funds, out of business.
It’s “trading the news” that isn’t the solution to all your trading problems, @shanmugapradeep , not “retail CFD”.
I’m really sorry, and I’m not trying to offend or upset you, but I’m really starting to understand why so many other members here, in so many other threads, have so repeatedly commented that it’s very difficult to help you. The 5 links I posted above might have helped, you know? But only if you read them.
If you read the Babypips Pipsology school lessons, @shanmugapradeep , and some of the forum threads discussing that important point, you’ll appreciate that with CFDs the broker’s your counterparty, even if they label themselves STP or ECN or NDD or DMA or any of the other three-letter abbreviations they use to try to encourage people that they’re genuinely “brokers”.
They’re just not, and especially for news trading, actually they couldn’t possibly be, could they, if you think about how that would work?
Yeah, news trading is a different beast altogether - high reward, but high risk too. I’ve had similar experiences during NFP and CPI drops where price gaps just wipe out stop losses, and without balance protection, it’s brutal.
