Discussions on new traders

Magos

Established member
911 24
Question: What are new traders looking for in a BROKER/DEALER especially for FOREX and CFDs.


I would appreciate to get your inside on this guys.


Examples can vary such as: segregated accounts, margin, stop-out levels, education, etc.
 
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Liquid validity

0 0
Question: What are new traders looking for in a BROKER/DEALER especially for FOREX and CFDs.


I would appreciate to get your inside on this guys.


Examples can vary such as: segregated accounts, margin, stop-out levels, education, etc.

For me, UK based - easier to deposit and withdraw, lower connection latency
as server is UK, low spreads, UK regulation (inc. FSCS).
Fast fill speed, little or no designer slippage, can connect a decent external platform.
For me that means LMAX.
Others would be EBS, CapMar and Currenex.
 

Magos

Established member
911 24
reply1

For me, UK based - easier to deposit and withdraw, lower connection latency
as server is UK, low spreads, UK regulation (inc. FSCS).
Fast fill speed, little or no designer slippage, can connect a decent external platform.
For me that means LMAX.
Others would be EBS, CapMar and Currenex.

Very nice reply; but still why UK/ FCA and not any other jurisdiction?

Let's share some insides to the guys seeing this post.
 
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Liquid validity

0 0
Very nice reply; but still why UK/ FCA and not any other jurisdiction?

Let's share some insides to the guys seeing this post.

For me main reason is USA brokers generally mean wire transfer only for me.
My bank for some bizarre reason does not offer GBP wires to USA over internet,
phone only, and I don't want margin deposit in USD.
UK broker means debit card transfer and back to card or BACS to account.
Connection latency:
http://www.speedtest.net/

Check the ping (time lag) from same UK location to NY/ Chicago broker,
and a London broker.
Lower with a broker in London.
Not an issue for most maybe, but responsiveness of platform is certainly noticeable.

Thats just a personal thing.
Nothing whatsoever wrong with most decent regulated USA brokers (none bucketshop).
 

Shakone

Senior member
2,458 665
Why the interest in 'new' traders?

For me it's everything that Liquid Validity said, plus reliability of connection (down for more than 5 minutes during the trading day is not really good enough - except at rollover), plus reasonable overnight financing, plus low commissions, plus accurate price
 
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Magos

Established member
911 24
this is become a good discussion post; with highlights of:

- Cheap transfers
- Speed
- Reliability
 

Magos

Established member
911 24
reply2

wait for the punchline..........its coming :cool:

No punchline here, sorry!
just interested from a qualitative side of things to find out:

What in General new traders want and how I / we can help them get it!
 

Purple Brain

Experienced member
1,613 179
Narrow spreads have been mentioned, but I'd be willing to pay slightly wider spreads for a broker with a reasonable policy with regard to spread differentials on increased volatility.

OANDA 2.4 spread on nzd/jpy is fine, but not when it hits 30 under stress. I'd be willing to pay say 5 pips for a fixed spread on that pair, for instance.

It would be one less issue to have to manage around and one less thing to have to think about when managing a live trade.

The extra income they made from taking double the normal spread on every trade I take would offset any exposure they took on during the infrequent exposures to high volatility events. Obviously they have the financial modelling to calculate just what they'd need to charge - wouldn't necessarily be double - to cover themselves, but you get my drift.
 
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Liquid validity

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Narrow spreads have been mentioned, but I'd be willing to pay slightly wider spreads for a broker with a reasonable policy with regard to spread differentials on increased volatility.

OANDA 2.4 spread on nzd/jpy is fine, but not when it hits 30 under stress. I'd be willing to pay say 5 pips for a fixed spread on that pair, for instance.

It would be one less issue to have to manage around and one less thing to have to think about when managing a live trade.

The extra income they made from taking double the normal spread on every trade I take would offset any exposure they took on during the infrequent exposures to high volatility events. Obviously they have the financial modelling to calculate just what they'd need to charge - wouldn't necessarily be double - to cover themselves, but you get my drift.

I've tested that with LMAX, not conclusively with a large sample size I have to say,
all the same, my observations were very encouraging.

I tested by trading news spikes (note - I don't generally recommend this, but its
probably the best way to test a broker for spread widening and slippage).
Spreads widened to about 0.5 at worst from typical 0.3 EU spread.
Slippage - zero, tested with 10 SL, verified with external feed as completely accurate at 1 tick level.
Not conclusive as I say, but so far LMAX seem extremely good on that front.

Spreads widening and slippage are unavoidable anyway, you just don't want
additional one sided manipulation from the broker.
manipulation by the broker.
 

Purple Brain

Experienced member
1,613 179
Had a quick look at LMAX yesterday when OANDA hit the skids and looks half decent. A little concerned I couldn't find out how to order the pairs list or add additional pairs. Even more concerned when their helpdesk didn't know either. But if their spread action is as you say, that would be a minor inconvenience I'd be willing to put up with.
 
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Liquid validity

0 0
Had a quick look at LMAX yesterday when OANDA hit the skids and looks half decent. A little concerned I couldn't find out how to order the pairs list or add additional pairs. Even more concerned when their helpdesk didn't know either. But if their spread action is as you say, that would be a minor inconvenience I'd be willing to put up with.

If you mean web platform, add them to watchlist, don't think you can
sort by order though, think its just alphabetical, not sure.

Either of these will connect to LMAX, instead of using web platform.
http://www.multicharts.com/se/ - free, only 2 instruments though.
http://www.sierrachart.com/index.php?l=doc/Packages.php#Table - package 3 or 5
http://www.sierrachart.com/index.php?l=doc/LMAX.php
 
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Magos

Established member
911 24
From some conferences I have been personally LMAX was suffering on the following statment:

Now they even have it in the website:
Firm limit order liquidity with no ‘last look’ rejections more
LMAX Professional runs an open order book (up to 20 levels of depth via FIX), driven by streaming no ‘last look’ limit orders supplied by liquidity providers, ensuring transparent price discovery and true cost of trade for every matched order.
Market participants are free to enter their interest to be worked in the market. close

Overall LMAX idea is a very good idea, but the MT4 domination on retail is another thing to factor in.
I guess that is why OANDA moved towards MT. Traded before with OANDA, slippage on execution (I can say), not the best trading experience but very good brand name (especially in academia).

This brings us to another topic for our audience: Instant Execution Vs. Market execution; does it matter ?

Instant Execution: Re-quotes and price guaranteed up to a certain level.
Market Execution: Swiping the limit order book (slippage on order usually above 2 Million i.e. 20 lots).
 
 
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