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What is the Best FX Broker?
- Thread starter catie
- Start date
Quote from DynamicHedge:
Oanda is currently the best forex broker(I prefer 3rd party charting),
IB forex is somewhat behind and needs improvement - they can improve by
1. paying interest on the first $10k deposited into IB forex account(Oanda pays interest to the customer on every part of the deposit),
2. IB should remove the mandatory $120/yr activity/quotes fee to be competitive(there are no monthly mandatory fees with Oanda),
3. there is a mandatory minimum IB forex fee of $2.50 per trade, which should be removed so that customers can easily average down/up.(why not have 0.2-0.1 basis point commission with no minimum, like Oanda and most other forex brokers.)
right, IB does need these improvements.
The question of the OP is seriously flawed, since there is no "best FX broker".
If you are daytrader, good executions and low commissions are important. One of the well known multibank-platforms are commendable.
If i traded EOD, id choose the retail offering from a bank (DB or ABN i.e.), to have optimal security of funds. A few pips up or down wouldnt matter much with stops and TPs of hundreds of pips.
If you are a carry-trader, obviously swap rates are important (oanda comes to mind).
If you are daytrader, good executions and low commissions are important. One of the well known multibank-platforms are commendable.
If i traded EOD, id choose the retail offering from a bank (DB or ABN i.e.), to have optimal security of funds. A few pips up or down wouldnt matter much with stops and TPs of hundreds of pips.
If you are a carry-trader, obviously swap rates are important (oanda comes to mind).
Quote from DynamicHedge:
Oanda is currently the best forex broker(I prefer 3rd party charting),
IB forex is somewhat behind and needs improvement - they can improve by
1. paying interest on the first $10k deposited into IB forex account(Oanda pays interest to the customer on every part of the deposit),
2. IB should remove the mandatory $120/yr activity/quotes fee to be competitive(there are no monthly mandatory fees with Oanda),
3. there is a mandatory minimum IB forex fee of $2.50 per trade, which should be removed so that customers can easily average down/up.(why not have 0.2-0.1 basis point commission with no minimum, like Oanda and most other forex brokers.)
IB is not targeting this segment of the market. If you are not actively trading and/or are trading small size then IB would not be on your short list.
IB is targeting the active trader, who can comfortably meet our $10 per month in commissions (or you can cover this in data fees â for which you get all US stock, futures and options data for this price). Similarly, with the $2.50 per trade versus a no commission broker, this will be an issue if you are trading small size. But even at a small size of $25,000 nominal (which you only need $500 to make this trade), then a 1 pip price improvement covers this. With a no-commission broker you always have to pay the spread.
For larger size it becomes irrelevant, and commissions of $10-20 per million are very competitive.
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Quote from Steve_IB:
IB is not targeting this segment of the market. If you are not actively trading and/or are trading small size then IB would not be on your short list.
IB is targeting the active trader, who can comfortably meet our $10 per month in commissions (or you can cover this in data fees â for which you get all US stock, futures and options data for this price). Similarly, with the $2.50 per trade versus a no commission broker, this will be an issue if you are trading small size. But even at a small size of $25,000 nominal (which you only need $500 to make this trade), then a 1 pip price improvement covers this. With a no-commission broker you always have to pay the spread.
For larger size it becomes irrelevant, and commissions of $10-20 per million are very competitive.
at a min. size of $25,000, 2 pips or more for round turn plus spreads, not competitive at all.
with a $5m Maximum Order Size, but require a 100m+ or 200m+ daily trade amount to get the 'very competitive commissions'. strange marketing strategy.
Most traders of this segment would probably prefer CX or other ECNs, even first tier pb.
Quote from bltoby:
with a $5m Maximum Order Size, but require a 100m+ or 200m+ daily trade amount to get the 'very competitive commissions'. strange marketing strategy.
Most traders of this segment would probably prefer CX or other ECNs, even first tier pb.
I disagree.
Nevertheless, $200m at $5m per order is only 20 r/t's. If you require a larger order size than $5m then PM me. If you're in that size bracket then we also have a number of other developments that haven't been generally advertised that you would be interested in.
Quote from bltoby:
my point is not the max. $5m per order, but not all traders are scalpers, make 20 r/t's per day.
True. However, we can accommodate larger per order size on a request basis. Although if you're trading more than the inside quote which is usually between $10m-$30m with IB, then you're probably better off working the order anyway.
Steve,
Why you limit the max size per order to 5 million when there is usually between
10 and 30 million at the inside bid/offer ?!
By coincidence that is the typical max size that the banks want to execute automatically , for anything above they
prefer to have a "second look"
Why you limit the max size per order to 5 million when there is usually between
10 and 30 million at the inside bid/offer ?!
By coincidence that is the typical max size that the banks want to execute automatically , for anything above they
prefer to have a "second look"
I heard the craziest thing the other day. Well, supposedly, a few of Felix's forexdiamonds subscribers, ended up making several thousand dollars on the NFP trade the other Friday, and they were trading over a million lots with Oanda. So Oanda shut down their accounts. Really makes me wonder, if you have a ton of money to trade with, who the heck can you use?