0 pip spread!!

[Faris]

Good Evening

I dont think its possible to have a zero spread but this broker seems to be able to offer its clients just that.
http://www.forexvan.com/files/home.htm

Faris

 

[iq200]

Brokers screw you on at least one or more of the following ( these are the ones that come to mind):
1) Spread
2) Comissions
3) Data

So if its 0 spread then it must be one of the others!

Regards,

Imran

PS 'Cos you dont get something for nuthin' !!

 

[JTrader]

Brokers screw you on at least one or more of the following ( these are the ones that come to mind):
1) Spread
2) Comissions
3) Data

So if its 0 spread then it must be one of the others!

Regards,

Imran

PS 'Cos you dont get something for nuthin' !!

Hi ImranQ - I agree - there must be a catch!

But if retail brokers are so bad, and if they do "screw you", manipulate the market (due to their conflict of interests - profiting from clients losses) - as seems to be the case from reading these discussion boards, it amazes me that -

A) They have any clients - given the poor service and conflict of interests
B) Any clients they do have are profitable and are able to generate a living

I'm not saying that they don't screw clients - but if they do (and I believe that they do so at times), why do people trade with them?

Hi Faris

Haver had a look at ForexVan zero pip spread information @ - http://www.forexvan.com/files/benefits.htm & http://www.forexvan.com/files/trading.htm.

With a zero pip spread on spot forex and commission free index, futures and CFD trading - how exactly can/do they make their profit? WHAT IS THE CATCH?

Their world offices are based in the British Virgin Islands - does this tell us something?

Many thanks

jtrader.

 

[rossored]

I was in Road Town in Tortola earlier this year. Suffice to say its not exactly a thriving metropolis. You can read into that what you like.

 

[JTrader]

With a 0 pip spread - it would be possible to sell and buy at the same price - as GammaJammer says - there is nothing to sto them dong this and nothing to stop them being profitable. However, it simply means that they are losing the 3 pip spread that other brokers are profiting from. Therefore they have to place even more emphasis on profiting from clients losses. Would this eqate to a more level playing field for the client or would they simply find that there ability to trade at prices which reflect the underlying interbank market is interfered with/manipulated???


jtrader.

 

[eminem]

I was in Road Town in Tortola earlier this year. Suffice to say its not exactly a thriving metropolis. You can read into that what you like.

I believe that road is quite popular with "Brass Plate" companies. A lot of corporations have that address as their registrered office to take advantage of BVI status, they are just administration centres, there will be no physical presence of the company at that address.

 

[rossored]

Eminem, you are quite correct.

A quick google of "Akara, 24 De Castro Street" reveals several pages of companies with thier HO there.

 

[robber]

read the web site carefully folks, 0 pip spread maybe but they charge commision on Forex trades.

Neil

 

[GotGold]

Minimum account size 50 grand!

I don't think I'll be sending my life savings to some address in the Virgin Isles that I saw on the net!
(might make a good feature on Watchdog though)

 

[drycott]

0 pip spread is available and yes it does need large account sizes, its not often one bank will supply "choice " pricing as described above by Gamma but what is possible and currently available by several companies is Multi Bank portals, whereby they show you the client the Best Bid and the Best Offer from ALL of the Banks that they deal with.
So say Deutche Bank is showing 1.2780 1.2782 and CitiBank showing 1.2778 1.2780 you the client will see 1.2780 1.2780 i.e the best available bid and best available offer. Thus no one bank is losing money by not making a spread.
However it normally requires LARGE account sizes and I have NEVER seen it offered from an offshore company...normally by very large and well known names.
(it is of course possible that this company has an account with a multi bank provider and is passing on the benefit to us for smaller sizes......but again small offshore companies...well not much security)

 

[JTrader]

http://www.forexvan.com/files/benefits.htm

BENEFITS OF TRADING WITH FOREXVAN

FOREXVAN offers foreign exchange traders the most advanced and secure method for trading currencies online. Start trading with FOREXVAN and receive:

• NO pip spreads in major currencies. No other broker offers non spread for transaction sizes as small as $10,000.

• Now offering commission free trading in futures, shares, and indices. Click here for details...

• 24 hour online dealing. Live clients can also trade via telephone in the unlikely event of system outage.

• Superior internet trading software.

• Full Hedging Capabilities. Positions of opposite direction can be held in the same currency in the same account without offsetting.

• Zero Commissions for all accounts.

• Trade in transaction sizes of as little as 10,000 units of the base currency, about $10,000.

• $2500 account opening minimum for Forex trading.

• Low capital requirements. FOREXVAN allows trading based on required margin of only $50 per lot, up to 100 lots. Margin requirements for larger positions are still only $100 to $200 per lot.

• Safety of Funds. All FOREXVAN client funds are held separately in major money center banks with an A+ credit rating or better.

• Convenient account access and administration for introducing brokers, trading managers, and individual clients.


FOREXVAN offers online traders the most advanced and secure method of dealing in Forex, metals and CFDs ("Contracts for Difference") on indices, futures, and shares:

• NO pip spreads in major currencies
• Commission free trading in index, futures, and share CFDs
• 24 hour online dealing
• Superior internet trading software
• Full Hedging Capabilities

 

[JTrader]

http://www.forexvan.com/files/trading.htm

TRADING SPECIFICATIONS

FOREXVAN offers online traders the most advanced and secure method for trading currencies, indices, futures, and shares online. Account specifications are as follows:

• Trading includes major currencies and CFD's on, indices, futures, and shares - all on the same state-of-the-art platform.

• Minimum trading increment: 1 lot.

• Pip value per lot: Please see Contract Specifications for details.

• Margin Requirement: $2,500 per lot for all instruments.

• Overnight Interest: 9% per annum, or about $5 per lot per day, depending on the instrument.

• Account Opening Minimum: $50,000.

• Margin Call Procedure: Positions are automatically closed by our dealing desk when account equity drops below $500 per lot.

• Hedging Functionality: Positions of opposite direction can be held in the same currency in the same account without offsetting. Positions are only closed when the client specifies "close position" or places a stop or limit on the position, or by margin call.

• Commissions: Zero for all accounts

 

[JTrader]

read the web site carefully folks, 0 pip spread maybe but they charge commision on Forex trades.

Neil

Hi robber -

I can't see any information which states that forexvan although not charging a spread on forex, charge commission. Do they indicate that commissions are payable?


GotGold -

although it says "Account Opening Minimum: $50,000." It does say "$2500 account opening minimum for Forex trading."
Some of the info in these two extracts above does seem contradictory, or maybe it is not explicit in saying which instruments certain trading specifications apply to. -
For example it says "Low capital requirements. FOREXVAN allows trading based on required margin of only $50 per lot, up to 100 lots. Margin requirements for larger positions are still only $100 to $200 per lot." (is this equal to 0.5% margin?). But then it says "Margin Requirement: $2,500 per lot for all instruments."

Cheers

jtrader.

 

[JTrader]

Hi

it is now 7 days since I emailed www.forexvan.com - to ask a few simple questions about their service. I haven't received any kind of response or confirmation that they will be attending to my message. This hardly inspires confidence in this company - from my point of view.

Cheers

jtrader.

 

[JTrader]

Hi GJ

thanks for the advice.

I am happy to trade fx futures with a 1.5 pip spread (inc. commission) or Oanda retail fx with 1.8-2 pip spreads.

jtrader.

 

[JumpOff]

Oanda has been very consistent at 1.8 pips through 90 percent of my demo trading with them for the last 4 weeks. Yesterday during the payroll release, they went to 3 pips for about 10 minutes, and one afternoon about a month ago, they went to 10 pips although I couldn't tell why and the market wasn't doing anything unusual. The only thing I'd add to my wish list is some kind of mechanism to make it really obvious what the spread is. It's published right there on the main screen, but I'd like the chart background to change when the spread widens. Sometimes the pop up order dialog box covers up the spot where the spread is published. (mostly this is just my problem, as I find it difficult to remember to check the spread each second before I push the go button - I expect I'll get used to doing that.)
JO

 

[JTrader]

GammaJammer
I actually like the fact that they publically change the spreads when the market gets less liquid. It's the adult thing to do.

GammaJammer
I'd rather have a wider spread over the numbers but if you hit the price its a done deal. That's what happens in interbank terms so I think reflecting that is perfectly fair.

Totally agree -


this way a client can tell through the spread, if there are any warning signs of stormy weather in the underlying interbank market. If there is a 10 pip spread with Oanda - that indicates to me that now is not a good time to place a trade. But if they maintain a superficial 3 pip spread which if you actually try to trade -will get requoted - it just wastes my time and the brokers time.

Personally though - trading intraday - I do not intend to place trades or have market exposure around the major economic news releases.

 

[drycott]

jtrader

JTRADER

How long have you been trading and how well do you do on average?

 

[robber]

jtrader, sorry just noticed your comment; Heres the quote from the site re commisions (NOTE IT STATES ....."commission free trading in futures, shares, and indices:" No mention of FOREX!!!!!!!!!!);



FOREXVAN offers foreign exchange traders the most advanced and secure method for trading currencies online. Start trading with FOREXVAN and receive:

• NO pip spreads in major currencies. No other broker offers non spread for transaction sizes as small as $10,000.

• Now offering commission free trading in futures, shares, and indices. Click here for details...

• 24 hour online dealing. Live clients can also trade via telephone in the unlikely event of system outage.

 

[JTrader]

Hi

I don't know for sure how forexvan achieve their profits - they obviously don't want to achieve any customers - as they still haven't answered my bl***y email! (9 days on)