Forex trading with Oanda

Why not just trade E6 with IB: the spread is always one or two ticks (even during European hours) and costs are minimal. Seems a better deal to me, or am I missing something.
 
I am new to this Forex. I been researching on trading FOREX for a few days. Here are what my opinions.

Advantages of spot trade.

1) You can hold longer and earn interest or pay interest.
2) No comission.
3) Depending on the brokers, the pip spread are pretty much fixed at 2-3 pips. I think that is what those borker meant by "no spread widening". I am not sure.

Disadvantage of trading the Euro future

1) You gain no interest (if you are long the base currency that pay higher interest)
2) Comission (this can be a lot if you trade a lot $2.40 per contract per $125k EURO). If you decide to trade 2 contract, then it will be costing a little <$10 per roundtrip. That can add up a lot if you are very active.
3) The future spread can move from 1-5 ticks. Usually it is around 1-2 ticks.

I am not sure IB platform are 24 hours. Overall both trading instruments are good.

I did read somewhere on Oanda forum, that you can request a segregate account.

 
some remarks:
to my knowledge the intrest is calculated in the price of the future
i have been trading E6 (although not for a very long time, probably too early to draw any conclusions) and most of the times the spread is something like 1-2 pips. What you add in commission you can save in pips i think. So in the end it still seems cheaper to trade E6.
 
I´m also opening an acct with OANDA. My main reason is to hedge my USD acct I´m opening with another broker.

Let me explain. I live in Europe so my main currency is Euro. The new broker I´m opening an acct with, doesn´t allow me to keep my acct in Euo´s. If I open an acct with lets say $35000,- in it, I can now enter a stop order with OANDA to SELL $35000,- for Euro´s so in case the Euro keeps rising I don´t lose money by having a USD acct.

I investigated OANDA as good as I could and couldn´t find anything negative about them except the registration (Which has been done by now)
Also, a close friend and trader has an acct with them for a while now and he has withdrawn money several times.

Hopes this helps.
 
cvds16,

What is the best time frame for trading E6?
It seem to move during the opening of the US stock markets, then pretty much stay flat line during the day.

Is the volatility good, +/- 50 ticks a day...

 
H2O,

When you contacted Oanda, did you actually ever get a live person who answered the phone, or did you always have to leave a message for someone to call back. I even got a voicemail when I went through to "trading support". So I guess it looks like if a person is in trouble and needs trading support for whatever reason, they're going to be in big trouble.

I find their 2 pip spread the most attractive thing about them right now, but I don't think it is worth it under these circumstances.

Are there any other brokers offering 2pip spreads? CMC is 3 pips.
 
gemini,

yeah that what i thought too, the 2 pips is really attractive...
most other offer 4-5 pips... Interbank dealers probably will only take clients with a lot of capital...

Man Financial wants $25k min, $250k transaction...

I would guess other big Interbank will also want something more than that...
 
I never spoke to a live person but I must say I never tried it either...

As I explained, I only need this acct to hedge my USD trading acct so I don´t need fast action. But there´s certainly a point in what you´re saying so I´m going to try to contact them.

Keep you informed.
 
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