Change of strategy...

mike.

Senior member
2,099 706
I've been spreadbetting forex through my SB broker for a while now, Briefly my strategy involves a 9 sma, H4, H1, M5 charts for long and short term trends, NVP's correlator and a currency strength meter.

My method is to try to identify the top or bottom of a re-tracement for entry and exit using PA and short term S/R levels.

I have been using a R/R of 1:2 targeting 40 pips. Ok, today i shorted aud/jpy, managed a good entry and 15 pips within mins, then it retraced, then back in profit, then it retraced. This went on all day... It was doing my head in that i closed the trade for +20 at about 21.00 tonight.

My question's fellow traders are... Had i been scalping each pullback i feel as though i could of at least trebled my pip count, Plus I wouldn't of been bored out of my mind. When i do get time to trade( which is not very often) I do like to do some trading.
So how much is this going to cost me through a forex broker say for 10 trades ? I paid a 3 pip spread for the trade today, Are broker fees the same for a mini lot as a standard lot ? and, would i need to go DMA for scalping ?

Im sure i would soon be flagged up if i started scalping through my SB broker plus the spread is a killer.
 
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wackypete2

Legendary member
10,229 2,054
If you trade spot forex through a dma broker (recommended) you should be able to get < 1 pip spread. Comm. are usually expressed in terms of $/per some notational value so no matter if you trade a micro lot or 10 standard lots the comm cost would be scaled accordingly.

Scalping is not easy but can be rewarding. Start with small lot size. Even if you use a bucket shop broker, most of them won't bother flagging you if your position turn around time is over 5 minutes. They just want to make sure they have time to aggregate positions and hedge. The low life scum unregulated bucket shops should be avoided at all costs.

Good Luck!

Peter
 
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mike.

Senior member
2,099 706
Cheers Pete, (y)
So im guessing, About £6 per round trip x 10 trades = £60 plus the spread. I would need approx £70 profit to breakeven out of the 10 trades, which equates to 70 pips trading 1 mini-lot, Is that about right ? Or have i worked it out wrong ? :LOL:
 

wackypete2

Legendary member
10,229 2,054
Cheers Pete, (y)
So im guessing, About £6 per round trip x 10 trades = £60 plus the spread. I would need approx £70 profit to breakeven out of the 10 trades, which equates to 70 pips trading 1 mini-lot, Is that about right ? Or have i worked it out wrong ? :LOL:

Almost! You didn't scale it. Using your example commission rate:
Standard lot = $6x10 trades = $60 = 6 pips + spread.
Mini lot = $0.60x10 trades = $6.00 = 6 pips + spread.
Micro lot = $0.06x10 trades = $0.60 = 6 pips + spread.

No matter how many lots, mini lots or micro lots you trade you still need 6 pips + spread over 10 trades to cover costs. This is only for spot forex. If you try exchange traded currency futures this commission structure is not valid.

Peter

ADDED: You should be able to get better rates than your example.
 
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wackypete2

Legendary member
10,229 2,054
This might not be clear so I'll just add on a per trade basis using a standard lot your costs would be (spread = 1pip = $10) + (commission = 0.6 pip = $6) so in your example each trade would cost you $16 per standard lot traded, $1.60 per mini lot traded, or $0.16 per micro lot traded.

Peter
 
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mike.

Senior member
2,099 706
Ahh, fantastic, that's where i was going wrong. So $6 for 10 mini lot trades seems cheap enough. So that would be $1.20 for one trade of 2 mini lot's and so on...?
 
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mike.

Senior member
2,099 706
Sorry Pete, posted at the same time, That was not a reply to your last explanation..
 

mike.

Senior member
2,099 706
Just looking at Oanda's web site, Im surprised by the lack of information for new customers.
cant seem to find whether or not they are DD or NDD execution, Also account types and min deposit.
They mention that currency is traded in units and not in lot's, but again, cant seem to find a decent example of how this works.
Anybody use them that can give a explanation as to how they operate, As their obviously struggling.
 

random12345

Established member
793 280
Just looking at Oanda's web site, Im surprised by the lack of information for new customers.
cant seem to find whether or not they are DD or NDD execution, Also account types and min deposit.
They mention that currency is traded in units and not in lot's, but again, cant seem to find a decent example of how this works.
Anybody use them that can give a explanation as to how they operate, As their obviously struggling.

Mike if you've got $10k, consider going with LMAX. Smallest (traditional) lot size is 0.01 or $1,000 on the E/U for example and UK based which is always a massive plus for withdrawals in my opinion.

Their free software is very basic though - same ProRealTime skin stuff IG use except an even older version and you can't deal from the chart. Depends on what you are looking for.
 

mike.

Senior member
2,099 706
Mike if you've got $10k, consider going with LMAX. Smallest (traditional) lot size is 0.01 or $1,000 on the E/U for example and UK based which is always a massive plus for withdrawals in my opinion.

Their free software is very basic though - same ProRealTime skin stuff IG use except an even older version and you can't deal from the chart. Depends on what you are looking for.

Thank you Random, Ill have a look around their web site now. Its got to be a plus if they are UK based imo.

just had a nosey around fxpro site, everything explained fully and appears to be a worthwhile broker, One thing putting me off though, Based in cyprus, owned by Russians.
 

random12345

Established member
793 280
just had a nosey around fxpro site, everything explained fully and appears to be a worthwhile broker, One thing putting me off though, Based in cyprus, owned by Russians.

Hey you don't mind giving comprehensive proof of identity and residence information to the Novosibirsk mafia do you?
 
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mike.

Senior member
2,099 706
Mike if you've got $10k, consider going with LMAX. .

Ahh, I see, that's their minimum deposit Random, I couldn't justify that amount in a trading account just yet, Im still in the learning process :LOL:

I've seen some dma brokers with smaller opening deposits.
Ill only be trading mini-lots @ £5/pip max, or less if my DD hits a certain level, Ill keep looking through the broker sites. Many thanks anyway (y)
 

tar

Legendary member
10,443 1,313
Just looking at Oanda's web site, Im surprised by the lack of information for new customers.
cant seem to find whether or not they are DD or NDD execution, Also account types and min deposit.
They mention that currency is traded in units and not in lot's, but again, cant seem to find a decent example of how this works.
Anybody use them that can give a explanation as to how they operate, As their obviously struggling.

Oanda :

Oanda is a MM but they don't have a dealing desk : no dealer confirmation , instant execution ...

You can deposit by wire , PP , CC ...

Minimum account balance 0

Minimum trade size 1 unit = 1 euro or 1 pound ... etc example : if you buy 1 unit EUR/USD and the euro for example moves against you 100 pip then you lose 1 cent ! .. etc so if you want to trade a micro lot you should type 1000 , minilot = 10 000 and so on , you can scale it as you wish so you can buy 1102 EUR/USD ... etc , thats if you are using FXtrade platform , but if you want to trade through their MT4 then the minimum trade size is one micro lot = 1000 unit .

Interest paid/earned second by second not at 5 ET like other FX brokers .

If you trade with "Oanda Europe" then you can trade indices , commodities as well ...

Spreads widen at news times and Asian session ...
 
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mike.

Senior member
2,099 706
Cheers Tar, there still on my short list at the moment. I was looking at IG's dma account last night, but don't fancy trading off there L2 dealer platform. So, I have fxcm, alpari and oanda on the list, all ndd forex accounts. I don't want to deposit a fortune should things not work out, I would most likely revert back to SB.
 
 
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