What is the Best FX Broker?

[OddTrader]

Quote from NickBarings:

Read what Forexcranium has to say about Oanda on this thread

and
http://www.elitetrader.com/vb/showthread.php?s=&threadid=62377&perpage=6&pagenumber=3

Please tell me which is your prefect broker for trading FX that you won't switch forever.

 

[NickBarings]

A broker called CME

 

[ddunbar]

Quote from NickBarings:

That's what we have margin requirements for

It's just 2% to initate a position. Excess liquidity can go negative.
So imagine a trader uses his full account equity to take an aggregate 5m or more position and one or more goes radically against him.

Or if he/she use his entire account equity, the positions initially go in his favor and he/she uses his excess liquity to initiate more positions. Then one or more positions go radically against him? Where are the funds going to come from to bring his excess liquidity positive?

IB.

They close out all positions and end up having to pay the banks the negative difference.

You don't have the problem with the CME because, one, there is centralized clearing and two, the have a maintenance minimum at which positions are flagged and either liquidated or the customer asked to put up additional margin to bring the position back above maintenance. But in forex, there's no such thing. What is more, you can contrive all sorts of exotic positions.

Ask yourself, why do most ECNs have a margin rate 50:1 or less but most bucket shops have a margin rate of 100:1 to as much as 400:1?

 

[OddTrader]

Quote from NickBarings:

A broker called CME

Do you know which broker(s) would offer retail traders trading CME's spot FX?

 

[mmccormac]

Quote from OddTrader:

Do you know which broker(s) would offer retail traders CME's spot FX?

You are talking about FXMarketSpace right? Well nobody know's that information yet.

They are talking about trading futures (EUROFX ect.) on the CME Globex exchange.

 

[ddunbar]

Quote from OddTrader:

Do you know which broker(s) would offer retail traders trading CME's spot FX?

Probably just about any of them that have access to Globex because the interface for FX mktspc is iLink2.0 just like Globex.

 

[OddTrader]

Quote from mmccormac:

You are talking about FXMarketSpace right? Well nobody know's that information yet.

They are talking about trading futures (EUROFX ect.) on the CME Globex exchange.

If EuroFX futures is truly a perfect product as some people think, why did CME invent FXMarketSpace for spot FX?

 

[OddTrader]

Quote from ddunbar:

Probably just about any of them that have access to Globex because the interface for FX mktspc is iLink2.0 just like Globex.

We'd better wait and see.

Why would we pay the handling commission to CME plus a broker's fees, if we can trade with the interbank rate direct?

 

[NickBarings]

Ddunbar,



You don't have that problem with futures ?! you gotta be kidding ?

daymargin for mini S&P of 500 ; 500$/71850$ =ONLY 0.69 %

That's a lot riskier that 2 % for forex in regard to debit situations

 

[dandxg]

Quote from OddTrader:

If EuroFX futures is truly a perfect product as some people think, why did CME invent FXMarketSpace for spot FX?

I have traded CME currency futures. One downside, and possibly the only one, is how much your give market can hold and what pairs you can trade. Everything in cf is based on USD and some markets can only hold so many contracts. Euro/USD no problem holding atleast 20, that's 12.5 per tick aka pip, but GBP/USD $6.50 per tick, can't take that big off an order from watching the DOM.