Transparency, fees and commissions.

Hi All, Please help !!

My questions are -

Do currency markets have transparent exchanges in the same way as for example stocks?

Is it possible to gain exposure to the FX market by way of direct market access? Is there an equivalent of Level 2 transparency and if so who provides a good service in the UK?

I am fed up of paying out for fees, commissions, exchane costs and slippage for OTC products. I currently trade spread bets with Capital Spreads and CFD's with IG Markets. I am keen on trading Euro/ USdollar with the minimum of cost in as transparent a way as possible.

Please help me improve my profitability.

Thanks Guys

simonfudge said:

Do currency markets have transparent exchanges in the same way as for example stocks?

Is it possible to gain exposure to the FX market by way of direct market access? Is there an equivalent of Level 2 transparency and if so who provides a good service in the UK?

Click to expand...

If you want to exchange trade forex you need to either go the futures route or the ETF route.

Rhody Trader said:

If you want to exchange trade forex you need to either go the futures route or the ETF route.

Click to expand...

Thank you, I will check it out
S

simonfudge said:

Hi All, Please help !!

My questions are -

Do currency markets have transparent exchanges in the same way as for example stocks?

Is it possible to gain exposure to the FX market by way of direct market access? Is there an equivalent of Level 2 transparency and if so who provides a good service in the UK?

I am fed up of paying out for fees, commissions, exchane costs and slippage for OTC products. I currently trade spread bets with Capital Spreads and CFD's with IG Markets. I am keen on trading Euro/ USdollar with the minimum of cost in as transparent a way as possible.

Please help me improve my profitability.

Thanks Guys

Click to expand...

Direct Market Access advantages to private investors are:
1. It creates greater equality.
>All orders have the same status, they are only prioritized in respect of price and time.

2. Increased visibility
>Orders can be seen by the whole market. This allows all participants "full contribution to central market liquidity".

3. Visibility of the depth of the order book
>This visibility ensures that traders know how many buyers and sellers there are and also the price they are willing to trade at.

4. You can set your own price
>Limit orders can be set at the price chosen by the trader and these prices are made available to the whole market.

:: I am keen on trading Euro/ USdollar with the minimum of cost in as transparent a way as possible.

CME currency futures. Point. You can get the lowest clearing cost possible (i.e. the broker does not take a lot), the spread is that of the best market maker available.

And you are totally transparent and fully controlled. Point. Everything is properly documented and "fair" (as in: done in a documented way). No "running stops" by giving a bad quote from a broker. The order books are fully exposed etc.