Best broker for Scalping

This is a discussion on Best broker for Scalping within the Brokerages forums, part of the Commercial category; well the main issue is that lots of them aren't really brokers... they tend to either run a bucket shop ...

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Old May 27, 2016, 5:40pm   #73
DT
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well the main issue is that lots of them aren't really brokers... they tend to either run a bucket shop model or a pseudo ECN model with an opaque micro-structure where the main liquidity provider is... them or some entity owned by them. Some others will make an attempt at showing they've got an ECN when again they're not transparent about the micro-structure, last look provisions offered to liquidity providers etc...

as a retail trader the two decent choices would be LMAX(though you need to be a liquidity provider for limit orders, still no last look provisions) or trading FX Futures on the CME

interactive brokers is ok-ish but it isn't a level playing field AFAIK
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Old May 27, 2016, 10:58pm   #74
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Originally Posted by vanillaman View Post
no broker wants you to prosper unless they are highly compensated
Exactly but that's ok they have operating costs so they will have to make money or they will shut shop.

However the problem I have with brokers is the one I have with the banks.
Corporate greed has taken over and they are not happy with the profits from their B books so they come up with other ways to make money money.

Quote:
Originally Posted by vanillaman View Post
rest assured if they give with one hand they will take with the other
Very true, and when we look closely, some of them will even charge swap when the interest rate is in our favour.



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Originally Posted by vanillaman View Post
The more expensive the product the less prone to manipulation it is
Sure but when I trade using someone like GKFX and I pay 4 pips just to enter a trade, unless I'm trading the Daily or the hourly and targeting many pips, it will hurt. And why should I pay the 4 pips anyway, that's a lot of money for passing on my trade to the market (IF they do that) when others will do it for 1/4 of that.
At least someone like FXCM provide other services so some traders will benefit from those.

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Originally Posted by vanillaman View Post
All these cheap spread brokers, you will all be surprised to learn that 0.5pip spread is actually a 3 pip spread when you take into account the mark up on exit
For the brokers I've used, the differences on exit are not big,
I have run 5 live accounts and 5 demo accounts (all from different brokers) and traded them simultaneously for a month and the results were similar.
However, the equity in certain accounts was significantly better
and I put that down to the lower spread or lower commission (or both) plus the swap charges.

So I kept the good old ICMarkets, Pepperstone plus the zulutrade bucket shop AAFX
Why do I have several brokers?
I get certain advantages on certain pairs.

At the end of the day, its not the broker making a trader profitable
BUT having a cheaper broker at the early stages of our trading when we learn to trade and when we experiment a lot, will help us preserve our capital.
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STICK TO YOUR TRADING PLAN, BETTER TO MISS OUT ON A GOOD TRADE THAN TO ENTER A BAD ONE
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Old Aug 5, 2016, 7:41am   #75
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guys .........I appreciate and share your concerns ......and agree a lot with BiLLV comments earlier

but brokers have to make a living / margin ........if they cant then we as small retail traders will cease to trade as no one will touch us ........it will be all big banks and hedges as in the past

unless we see a paradigm change somewhere this is as good as it gets from Brokers catering to retail market ?

I have used FXCM for years and they are generally ok ......jees they are better than most and Jason always stands up here and tells it as it is ..........

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Old Oct 14, 2016, 2:00pm   #76
Joined Feb 2016
Any broker providing low spreads with other facilities that can lower the trading costs are beneficial to try for scalping, more over scalping is not for every trader so whoever try it and losses money makes a complaint against the broker while the good traders trades and make money instead of complaining.
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Old Nov 4, 2016, 3:30pm   #77
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I think the market changed dramatically since this was first posted. I think you can find many decent options now. I'd suggest checking carefully the market distances, limits or any levels fully before investing. Of course, you should trade with true DMA/STP broker, otherwise you'll just have problems with a market makers.
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Old Nov 22, 2016, 6:31pm   #78
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Quote:
Originally Posted by vanillaman View Post
Well Bill, you are one of the few sensible people here who actually get the fact that no broker wants you to prosper unless they are highly compensated, rest assured if they give with one hand they will take with the other. The more expensive the product the less prone to manipulation it is. All these cheap spread brokers, you will all be surprised to learn that 0.5pip spread is actually a 3 pip spread when you talke into account the mark up on exit. That's just one of many ways, they are ripping you off.
to play devils advocate if they all stop offering a book........then we cant trade

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Old Nov 29, 2016, 12:02pm   #79
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I guess another translation is "nothing comes for free/cheap" yeah its one of the things that we all end up adapting too and continue to be more flexible to find way to actually make an extra with less expense.. setting aside laws/rules with money nothing and everything is possible i guess.
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