Safety of online forex dealers

[InTheZone]

Saschbar,

Do you trade off charts?

If so, how do you handle the price action that may have occurred when the futures markets are closed?

Thanks.

-- ITZ

 

[saschabr]

Zone,

I trade only off charts. In currency, the trend is your friend,
there it is more important than in any other market, IMO.

Globex futures are nearly 24/5. Don't beat me, but I think
it is 23:45. When index futures close @ 16:15, currency
continues to trade. Do you consider these few minutes
a serious issue ?

Regards

 

[saschabr]

... it is more important to this that IB does a 50 minute
daily maintainance when you cannot access globex.

 

[corvus]

Stops aren't guaranteed in the futures markets, however.

http://www.forex.com/trading_forex.html#4

 

[kenokabe]

Actually, this is pretty good thread.

I live in Japan, and Forex Trading is now boom among future traders.
Some of forex brokers in Japan are a section of very large company, for instance a broker I use in domestic is 300 times larger than FXCM financially, and people feel safe about their money with them.
They lately discuss a lot about choice of FX-Brokers, and many of them are neggative on the US FX-Brokers.

Business model is very different, too.
The most of the FX broker here charge zero commision, while the ost of ones in Japan charge some commision.

There are lots of pro and con around, but I agree that generally, we cannot feel so confident with FX-broker in the US.

 

[InTheZone]

Quote from saschabr:

Zone,

Globex futures are nearly 24/5. Don't beat me, but I think
it is 23:45. When index futures close @ 16:15, currency
continues to trade. Do you consider these few minutes
a serious issue ?

Regards

Saschabar,

It's not the 15 minutes that I am worried about, it's the lack of liquidity in the overnight markets that concern me.

From the charts I've pulled up in Qcharts, the currency future charts in the overnight markets are very spotty. While I have not researched this fully, I suspect the overnight forex charts will look quite a bit different from the overnight interbank charts.

Would you agree or disagree with this hypothesis?

Thanks.

-- ITZ

 

[kenokabe]

Quote from InTheZone:



Saschabar,

It's not the 15 minutes that I am worried about, it's the lack of liquidity in the overnight markets that concern me.

From the charts I've pulled up in Qcharts, the currency future charts in the overnight markets are very spotty. While I have not researched this fully, I suspect the overnight forex charts will look quite a bit different from the overnight interbank charts.

Would you agree or disagree with this hypothesis?

Thanks.

-- ITZ

Zone,

Some quote vendor such as eSignal doesn't offer intraday FX-futures although they does FX spot.

Ken

 

[saschabr]

Quote from InTheZone:



Saschabar,

It's not the 15 minutes that I am worried about, it's the lack of liquidity in the overnight markets that concern me.

From the charts I've pulled up in Qcharts, the currency future charts in the overnight markets are very spotty. While I have not researched this fully, I suspect the overnight forex charts will look quite a bit different from the overnight interbank charts.

Would you agree or disagree with this hypothesis?

Thanks.

-- ITZ

Market Makers are there for you overnight. At Globex EUR/USD
there are about 3 competing MMs. You will get a 3 pip spread
in the worst case. There will be always 50 contracts waiting
for you at bid or offer.

 

[InTheZone]

Thanks for the info.

How do your overnight charts look on 5 minute time frames? Spotty, or pretty much continuous?

-- ITZ

 

[saschabr]

The last trade chart: spotty
The last bid chart: very continous
The last ask chart: very continous

It is only that not many traders are into the game at 2:30 AM.