FXCM.com- Spot currency trading via web

If you go with a fx shop make sure your data feed has fx quotes that are supplied by a vendor that has multiple banks. Futuresource, cqg, & esignal are just a few who do.

List of some of the banks that a reputable vendor would have.
 

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Originally posted by WarEagle
The problem with retail FX trading is that your broker trades against you.
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I do not think this is a big problem. If you open position in right direction your FX dealer can do nothing agianst you ( of course if you choose right company to deal with).
 
WarEagle,

Then the question arises...

How does a bank dealer discern direction ?

Yes, he may have the spread in his favor, but even he has to have an idea where the market may move to.
 
I would assume that if you are right and the market moves in your favor that they can turn around and offset it in the interbank market at a more favorable spread. But if they have enough orders on either side then they can offset between customers, kind of like a bookie. I'm just speculating though because I haven't traded with any of them. Its just stuff I learned when I was researching FX trading.
 
WarEagle,

That makes sense. Just as in the same manner in which a NASDAQ
marketmaker would in a similar OTC market.

Pick off someone else making a market or someone else reflecting an order, or utilize one's orderflow.

IC, I understand now.


Thanks,

J-Law
 
Originally posted by WarEagle
But if they have enough orders on either side then they can offset between customers, kind of like a bookie. I'm just speculating though because I haven't traded with any of them. Its just stuff I learned when I was researching FX trading.
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That's right. Dealer first offsets between customers and then if needed offsets at interbank only net value he gets in result.
 
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