Which forex brokers DON'T trade against you ???

Quote from Detonator:

Besides Oanda, which forex brokers DON'T trade against you ?

I'm looking for a quality broker that has no dealing desk and - tight spreads, fast execution, and flexible contract sizes. Oanda does offer all of the above but they really drop off in their platform and charting.

Which other brokers would qualify ?
More...

Your assumption is incorrect. Oanda does trade against its clients. Every forex dealer does this. Look up the definition of counterparty:

http://insurance.cch.com/rupps/counterparty.htm

Also see on the Oanda boards the discussions regarding "shading", which by definition is trading against net customer positions. I have also personally experienced "individual pricing" with Oanda, and not too long ago have posted about that here on EliteTrader.

In your quest to find an honest spot forex broker, look for the phrase "no dealing desk", or stick with the ECN model.
 
Quote from pipscooper:

Your assumption is incorrect. Oanda does trade against its clients. Every forex dealer does this. Look up the definition of counterparty:

http://insurance.cch.com/rupps/counterparty.htm

Also see on the Oanda boards the discussions regarding "shading", which by definition is trading against net customer positions. I have also personally experienced "individual pricing" with Oanda, and not too long ago have posted about that here on EliteTrader.

In your quest to find an honest spot forex broker, look for the phrase "no dealing desk", or stick with the ECN model.
More...

That would not be entirely true, because fundamentally all the Spot currency markets are OTC.

I would guess, as I might be wrong:

Besides an ECN operator would charge commissions, any ECN type trading operations for spot currencies would have to deal with, ultimately through, a marketmaker who trades naturally against traders, retail or else.

Just my two cents.
 
Quote from Steve_IB:

Here's a screenshot of the futures vs IDEAL-Pro on IB. Spreads are similar for USD crosses. However, there is barely any liquidity in the non-USD futures.
More...

I see a 2 pip spread in GBP/USD on Ideal-Pro...nice !!

To the hotspot user: could you please tell us what the spread is usually like for EUR/USD and GBP/USD in London and NY session ? I have demoed them, however on the demo spreads were not so great at all...

Thanks !
 
For the majors (EUR, JPY, GBP, CHF, AUD, CAD) , futures are the best and GLOBEX continues to see increaisng liquidity. AUD & CAD are less lqiuid but unless you are traidng over $50M clips this would nt be a problem and if you work limit orders it wouldn't be aproblem.

In my opinion spot FX is only useful if you trade the crosses - EURGBP, EURJPY, ERCHF, GBPJPY, etc or the exotics, MXP, BRL, ZAR otherwise stick to globex futures.


I would hope in the future the CME would develop an incentive program to increase volume/liquidty on the FX crosses.
For most retail traders THERE IS NO REASON to trade spot FX.
 
Ok so which ECN models would be viable alternatives -

SAXO
HOTSPOT
COESFX

I have heard that they are great at execution but lack in platform and charting capabilities.


Also I have to disagree with the last poster in the sense that in SPOT FX you can develop Carry Interest trade strategies that are impossible in futures.
 
Quote from Detonator:

Ok so which ECN models would be viable alternatives -

SAXO
HOTSPOT
COESFX
More...


Saxo Bank and the Saxo Trader are NOT, repeat NOT, an ECN. Saxo is exactly the same as any fx retailer offering proprietary internet-based trading: it trades against the customer. It's not an order matching agent (an ECN) and is not brokering your trades to anyone else. You've been lied to if you've been told something different.
 
Quote from Ivanovich:

I was just about to post "Ask Chood about Saxo" as he is the arch enemy of them. But there you are, right on schedule :)
More...

Yes, but you've still not replied to my question (in another thread) about Hotel El San Juan, where I used to shoot dice (long time ago). Beautiful place. Very posh, or it was then. Thought you might have been there for drinks.

P.S. "Arch enemy" of Saxo? Nope, just another chump, bucketed minnow.
 
Quote from Marsupilami:

I see a 2 pip spread in GBP/USD on Ideal-Pro...nice !!

To the hotspot user: could you please tell us what the spread is usually like for EUR/USD and GBP/USD in London and NY session ? I have demoed them, however on the demo spreads were not so great at all...

Thanks !
More...

Hotspot is 1-2 pips in EUR and 3 pips in GBP in London and NY (sometimes you will see 2 pips GBP, but most of the time it is 3)
They are pretty much 1 pip in JPY about 75% of the time as well during those hours.

I know their demo sucks but if you can get past it the live spreads are excellent.
They will give you temporary access to view the live rates if you ask. Personally I think it would be easier just to sort out the demo.
 
2 Pips on GBP - that is awesome :D

This leads to another questions, what is the smallest spread anyone is offering on the GBP ? Most places you are lucky to get 3 pips
 
You must log in or register to reply here.
Back
Top