Brokerage advice for a newbie please!

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Old Nov 23, 2009, 10:14am   #1
 
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Brokerage advice for a newbie please!

Right... I have a reasonably robust system that I am confident will be reasonably profitable now I need a broker and a data feed for currency futures. I considered Interactive Brokers but I have read too many horror stories about slippage and under par charting. Idealy I need a broker that can give me E Micro round turns at under $5 prefferably $4. I also want direct access but it seems alot of brokers (Interactive brokers being one as far as I can gather) say they have DA but actually dont.

I would be really appreciative if some experienced traders could give their feedback on what data feeds and brokerage they reccomend that arent going to eat too much into my bottom line and also offer good execution etc.

Thanks
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Old Nov 23, 2009, 11:24am   #2
 
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Originally Posted by UberMicro View Post
Right... I have a reasonably robust system that I am confident will be reasonably profitable now I need a broker and a data feed for currency futures. I considered Interactive Brokers but I have read too many horror stories about slippage and under par charting. Idealy I need a broker that can give me E Micro round turns at under $5 prefferably $4. I also want direct access but it seems alot of brokers (Interactive brokers being one as far as I can gather) say they have DA but actually dont.

I would be really appreciative if some experienced traders could give their feedback on what data feeds and brokerage they reccomend that arent going to eat too much into my bottom line and also offer good execution etc.

Thanks
With FX day trading you have to avoid trading around news to avoid slippage.

I trade the big FX futures with IB.

FX micros dont look very liquid. Best to avoid them for now i think. Also commissions seem high for such small contracts.

If your account isnt big enough to handle the risk of a full size FX future you might consider using IBs ideal pro fx ECN. Minimum is around $30,000 on ideal pro.

Anything smaller you probably want to use an fx bucket shop.
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Old Nov 23, 2009, 11:39am   #3
 
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UberMicro started this thread thanks alot DD. What about the Mini Contracts are they tradeable in your oppinion. I do have a pretty small starting account size to be honest. I literally do not have the ability to raise capital beyond a certain point. I really want to grow my account to the point where I can trade the big contracts in the long run.

You mention an FX bucket shop, sorry for the ignorance but what is this? Is it essentialy an FX spot trading house?

Thanks again for your reply
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Old Nov 23, 2009, 12:53pm   #4
 
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Originally Posted by UberMicro View Post
thanks alot DD. What about the Mini Contracts are they tradeable in your oppinion. I do have a pretty small starting account size to be honest. I literally do not have the ability to raise capital beyond a certain point. I really want to grow my account to the point where I can trade the big contracts in the long run.

You mention an FX bucket shop, sorry for the ignorance but what is this? Is it essentialy an FX spot trading house?

Thanks again for your reply
Yeah, the likes of alpari, oanda, fxcm, igindex etc

I have only used IG, so can recommend them for execution (but not charting).

Avoid news spikes and you should be ok with most reputable firms.

If you manage to grow your account consider full FX futures or an ECN.

Its important with a small account to not churn it by over trading. You need to be very selective in your trades.
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Old Dec 1, 2009, 3:06pm   #5
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Re: Brokerage advice for a newbie please!

[QUOTE=UberMicro;982810]Right... I have a reasonably robust system that I am confident will be reasonably profitable now I need a broker and a data feed for currency futures. I considered Interactive Brokers but I have read too many horror stories about slippage and under par charting. Idealy I need a broker that can give me E Micro round turns at under $5 prefferably $4. I also want direct access but it seems alot of brokers (Interactive brokers being one as far as I can gather) say they have DA but actually dont.

I would be really appreciative if some experienced traders could give their feedback on what data feeds and brokerage they reccomend that arent going to eat too much into my bottom line and also offer good execution etc.

Thanks[/QUO

Hello UberMicro

I am a futures and options broker. Some of the elements you will need to consider to determine what the best rate will be for you will be your likely account size, how many trades (round turns) you will be averaging, and whether you will be holding positions over night or will be flat by end of trading session. You should also consider the level of experience of the brokerage team. If for example, your feed should break down and you have a position on, you will want to be able to get hold of someone who can exit trade for you and will pickup the phone, not call you back an hour or day later.

If I can be of help. please contact me at rich@binvstgrp.com

Good Luck.
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Old Dec 5, 2009, 6:34pm   #6
 
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Re: Brokerage advice for a newbie please!

When I started to trade forex, unfortunately I opened an account with scamers who disappeared a few months later with all our money. It is not something unusual since today we have lot of "brokers" and if you do not have experience, there is lot of chances to choose bad one.

Many people when looking for a forex broker are overly concerned about the cost. Usually more experienced forex brokers as well as those with a good track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable with, have credentials, have a proven good track record. Once you have done that, then you can talk about cost. Here you can find more advices on how to choose forex broker: http://forexobroker.com
Open your eyes and be careful before you choose your broker!
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Old Dec 5, 2009, 6:36pm   #7
 
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Re: Brokerage advice for a newbie please!

One more useful article with tips about brokers:

The forex market has really taken off within the last ten years. Every year, the market grows more and more, and competition has become more rigorous. At the same time, the opportunities to profit have never been greater.

This means that the requirements for forex brokers to stay in business are become more and more strict. This is all due to the fact that there are many scammers out there, waiting for a chance to take advantage of new forex traders.

At the same time, many hard working brokers are at a risk to go out of business because they can't keep up with the latest regulations. A safe forex broker these days isn't simply someone whom traders can trust, but also someone that isn't at risk of going out of business.

In order to ensure that you're working with a safe forex broker, you need to check to make sure he or she has at the very least $5 million in capital. A safe forex broker is also someone who is registered with the Futures Commission Merchant (FCM). This means that the Commodity Futures Trading Commission can monitor and regulate them.

If your broker is not located in the US, then check into the regulations in his or her own country. If you're new to forex trading altogether, then you need to do a lot of research to make sure you end up with a safe forex broker.

Another important thing you need to check into is the reliability of a forex broker. A safe forex broker will always be attainable for help and advice-24/7. You can read reviews from other traders about which forex brokers are safe and which ones are not. Make sure that you do a lot of research and reading before deciding, so that you will end up with a reliable, affordable, and safe forex broker.
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Old Dec 14, 2009, 8:15pm   #8
 
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Re: Brokerage advice for a newbie please!

I am also looking for a good ECN type broker, a true ECN broker, that is compatible with my using FAPTURBO. I want to start out with a small account ($500) before I jump in with both feet. Does anyone have any suggestions?

T.
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Old Jan 18, 2010, 8:24pm   #9
 
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Re: Brokerage advice for a newbie please!

I just move form FXCM.com to EFOREX.com. Their spreads are average 1.5-2.0 pips on the and i think there execution is alot better. I really cant comment on other brokers>
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Old Jan 19, 2010, 3:11pm   #10
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Re: Brokerage advice for a newbie please!

Mini Euro contract seems to be most liquid of all the mini FX contracts. If you are day trading the FX contracts, there is no margin, as margin is calculated at end of trading day. As long as you are flat by end of the day, you should not receive a margin call

Let me know if you have any other questions. I am a futures & options broker. If you would information about opening an account, please feel free to visit our website

www.whitehallvegas.com

Best of luck
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