RefcoFX vs. Oanda
- Thread starter eagerbeaver
- Start date
Quote from 2cents:
or no execution if the market has moved beyond the max. slippage your prepared to accept on a given order.
what IT guys (Finatek) who've worked on their API in Jan tell me is Oanda's quotes are not really ESP. the client station is actually polling the Oanda server not as many times per second as one would like (can't remember but maybe only every 500ms!) to get the latest price but thats not necessarily the price you'll be done at... therefore the potential for slippage, not just on figures...
and yes they do cancel trades when they feel they're being 'taken advantage of', your order flow is 'unfriendly' etc... thats their 'language')))) ... which is always a fine line shall we say but basically as the client, u r the one who gets screw*d in these cases...
other than that, excellent spreads indeed, can open an acct with $1, trade fractional quantities and all sorts of good things.... pretty good & honest single broker-dealer service for swing / position trading i'd say
By implication you would not use them to trade news?
Sounds like ECNs the way to go...which brokers fall into this category?
Y'all really need to read their terms & conditions. I cant stress that enough.
They reserve a lot of rights, that I've never heard of banks or futures markets claiming to have. Even though their terms probably wouldnt stand up in court as usual and customary market practices, your loss has to be pretty substantial to go to court.
I really dont get the benefit of these so-called FX brokers. Its their rules, their qoutes, and your credit exposure is to a broker who has co-mingled your funds elsewhere. IMHO, your true credit exposure isnt to Oanda, but to other customers. If a large Oanda customers blew up, could Oanda keep operating in the morning? I dont know.
In futures, theres plenty of folks with orders both customer and discretionary watching the prices, so there is little to no argument about what the high or low was and how much traded there.
FWIW, I've seen Tier 1 dealers honor orders if another dealer said the market touched some level, even if the dealer holding your order didnt qoute it. Does Oanda do that?
They reserve a lot of rights, that I've never heard of banks or futures markets claiming to have. Even though their terms probably wouldnt stand up in court as usual and customary market practices, your loss has to be pretty substantial to go to court.
I really dont get the benefit of these so-called FX brokers. Its their rules, their qoutes, and your credit exposure is to a broker who has co-mingled your funds elsewhere. IMHO, your true credit exposure isnt to Oanda, but to other customers. If a large Oanda customers blew up, could Oanda keep operating in the morning? I dont know.
In futures, theres plenty of folks with orders both customer and discretionary watching the prices, so there is little to no argument about what the high or low was and how much traded there.
FWIW, I've seen Tier 1 dealers honor orders if another dealer said the market touched some level, even if the dealer holding your order didnt qoute it. Does Oanda do that?
On the basis of this discussion, as well my own experience with RefcoFX's sludgy, suspect price action, I will not be trading Forex.
Could you be more specific?
I have a real RefcoFX account and have never had a problem with their quotes, or price action, at all.
FX brokers ain't brokers. They're dealers. In a fair market, you get a selection of dealers so if ones crooked you can always patronize another. Natural selection will weed out plenty of bad seeds. (not saying there aren't any left though)
For accounts less than $2-5k, i guess they have no choice but to go for FX bucketshops. They're all pretty bad when compared to Futures but the cream of the crap has to be Oanda.