Hi all,
I’m almost ready to open a live micro account and I’m searching for Forex brokers, but the informations are very conflicting.
Right now I have a demo account with FXCM, but I don’t want to put my money into their packet.
I’ll appreciate any suggestion, from experienced and even from inexperienced traders.
Who are the good Forex brokers?
8pipike
I would recommend interbankfx. But its up to you, just do your research and decide on your own.
There are no conflicting reviews; just mostly lousy reviews from un-winning traders, trolls, and shrills. Listen to professional and winning traders. And they will tell you to go with established firms in UK or US that are regulated. Please, don’t shop around for deals in looking for FX firms. I saw some moron recommending a firm in Nigeria. Nigeria? Also avoid Cyprus and Russia. Use common sense please. Go with established, regulated firms in either UK or US.
Hi,
Of course I’ll do my research -this is how I ended up here:)- and I’ll use my common sense too, but it would certainly help to get some information from senior traders.
About established firms, well…Refco looked pretty good.
Thanks,
8pipike
Oanda, no ref. system yet one of the biggest.
Have fun, enjoy the adventure
I trade with EFX: Experience Forex Freedom
They are an ECN. THERE IS NO FIXED SPREAD IN FOREX. Tell them THE RUMPLED ONE sent you.
You can google and find out what I really think about “FIXED SPREAD BANDITS”.
I’ll leave it at that so I don’t get banned.
How do I avoid the spread?
I explained this to someone yesterday in an IM.
With EFX you pay a commission rather than having a “FIXED SPREAD”.
It’s “apples and oranges” so don’t try to compare. “THE MATRIX HAS YOU” and you need to “FREE YOUR MIND” to understand what I am about to explain.
Let’s say the current bid/ask is 1.5010 x 1.5015
The current spread is 5 pips.
You want to SHORT.
You SHORT at 1.5010.
You set a TP at 1.5005.
Bid/Ask becomes 1.5005 x 1.5009 and the current spread is 4 pips.
At EFX, you will get filled if the bid is 1.5005 and someone TAKES your offer.
Bid/Ask is now 1.5004 x 1.5009 and YOU HAVE YOUR PROFIT.
Note: the ASK never reached 1.5005. THIS IS IMPORTANT!
If you entered this order at a FIXED SPREAD BANDIT, whoops I mean broker, your order is STILL OPEN!!
The bid/ask must become 1.5000 x 1.5005 and your order HITS the Ask.
DO YOU GET IT?
If not, then read this over and over and over again until the LIGHT BULB goes off!!
The day I found out about EFX is the day I opened an account there and stopped trading with FIXED SPREAD BROKERS.
The simplest thing to do is to load up a demo account at EFX Group and see it with your own eyes.
When you place your TP Bid offer at 1.5005, your bid is displayed on Level II.
The point is with EFX your offer gets hit.
With FIXED SPREAD BROKERS you have to wait to hit their offer.
Maybe this might help:
First:
1.5010 x 1.5015
and price drops…
1.5009 x 1.5014
1.5008 x 1.5013
1.5007 x 1.5013
1.5006 x 1.5012
1.5006 x 1.5011
1.5005 x 1.5011 You may get hit
1.5005 x 1.5010 You may get hit
1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT
AND LET’S CONTINUE
1.5003 x 1.5008
1.5002 x 1.5007
1.5001 x 1.5006
1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.
Does that make it clearer??
What about the commission cost?
The commission varies depending on the pair trading.
It is $.50 per 10k minilot on USDJPY. So if I gross 2 pips, I am making money.
From the EFX site:
[B]Commission Rates
Fixed spreads are a way for FCMs to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have �no commission�, that should be a red flag. So how are they getting paid? Its simple: they are making money with the built-in markup/markdown in the spread.
Our FCM, MB Trading Futures, has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.
Commissions are based on total dollar amount traded: $5 per $100,000 traded.
[/B]
Remember, tell EFX that THE RUMPLED ONE sent you.
Thank you everybody for the information.
8pipike