Forex - Spot v's Futures

JTrader

Guest
5,741 506
Hello

I'm interested to know how the tradestaion forex futures brokerage service compares to the Interactive Brokers service. The commissions are more or less the same, is the level of service much the same?

Cheers

jtrader
 

MartinD

Active member
105 2
I use TradeStation as my broker.

In terms of reliability, the TS platform and data feed have been very resilient, only one loss of connectivity during the whole time I have been using them and this was a globex issue.

I used IB for a month last summer and I found their system to be very unreliable. I dont know what its like now, but one of my trading buddies still seems to have trouble with IB whenever there is a fast market due to news etc.

If you do more than 500RT a month you can get a much better deal on commissions, plus you get the platform for free.

One big difference is the telephone answering speed and online support. TradeStationWorld forum is an outstanding support resource, and TS tradedesk pickup your call quickly, unlike IB.
 

MartinD

Active member
105 2
I should add that I dont trade spot forex with TS, i've only traded forex futures so I cant comment on the spot service
 

JTrader

Guest
5,741 506
Hello

having heard that some forex brokers charge interest on intra-day positions, and charge a fee for withdrawing and transfering funds, I would also like to know which forex brokers use any of these two policies.

Cheers

jtrader
 

TRADERguy

Active member
122 3
jtrader said:
Hello

having heard that some forex brokers charge interest on intra-day positions, and charge a fee for withdrawing and transfering funds, I would also like to know which forex brokers use any of these two policies.

Cheers

jtrader

CMC rolls your position at 5pm EST and pays/charges interest at that time. OANDA pays/charges by the second.
 
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Noche

Junior member
11 0
jpwone said:
Noche,

the description provided by TRADERguy of the difference between the spot market and the futures market is one of the best I have read. Don't take this the wrong way but until you understand all that TRADERguy has written then don't even think about trading Forex. The Spot Forex market is one of the most liquid in the world and attracts some of the best traders, they will be queuing up to take your money.


:arrowr: In fact I am starting to learn how to trade with FOREX, I work at a comapny here in Mexico (relative new aprox. 3 years) and i dont know much yet, my boss is all the time with me, but still... i am learning.... and I want to learn some more, I want to become a real broker... but in Mexico taht is still new, and no courses or classes for that. :!: :!: :!:
 

rog1111

Established member
674 10
Wow, there were some large short term spikes today on US data release. I got hit with -72 pips on GBP futures. Ouch !

Interestingly though, comparing Globex with FXCM charts, the GBP futures spike was about 40 pips bigger than the spot spike & the EUR futures spike was ca 11 pips larger than the spot. I guess the futures are far easier for the big players to move due to less liquidity, and although I am loathe to admit it, this just might make a case for trading spot rather than futures, particularly for GBP, as long as spreads are tight, and I am seriously thinking of changing.

rog1111
 

ChowClown

Senior member
2,732 56
Hi rog1111,

Do you trade any of the BO systems (originating from JT) you kindly backtested a while ago? If you do, which one(s) and what results have you had so far?

I trade using FXCM (since April) and have no complaints so far.

Cheers
 

rog1111

Established member
674 10
Hi ChowClown

I am trading GBP using the 1-8 GMT system, 70 pip stop, exit 20h30 GMT, 2 hours only allowed for entry. Recent results have not been great, but it's been a good learning curve at least. I will post a full set of futures actuals versus spot theoreticals in a separate post.

Which BO system and product are you trading ?

I very much like FXCM, their policies and service, but I see that other FX brokers are now offering at a 3 pip spread for GBP, which may make it worthwhile me switching from IB / Globex. No decision yet.

rog1111

ChowClown said:
Hi rog1111,

Do you trade any of the BO systems (originating from JT) you kindly backtested a while ago? If you do, which one(s) and what results have you had so far?

I trade using FXCM (since April) and have no complaints so far.

Cheers
 

ChowClown

Senior member
2,732 56
Rog,

I'm trading the '1-8am (GMT) EUR/USD, 60SL, 2hr entry, 6pm (GMT) exit' (phew) BO.

Since 22nd April '04:

Max DD: 81, currently averaging 11 pips/day, using FXCM (3 pip spread).

If you have the inclination/time and it's not too much hassle, would you be able to include a backtest of the '7-10am (GMT) EUR/USD, 10SL, no entry time restriction, 11pm (GMT) exit' - for Apr/May/Jun spot.

Thanks.
 

jimvt

Active member
164 1
rog1111 said:
Wow, there were some large short term spikes today on US data release. I got hit with -72 pips on GBP futures. Ouch !

Interestingly though, comparing Globex with FXCM charts, the GBP futures spike was about 40 pips bigger than the spot spike & the EUR futures spike was ca 11 pips larger than the spot. I guess the futures are far easier for the big players to move due to less liquidity, and although I am loathe to admit it, this just might make a case for trading spot rather than futures, particularly for GBP, as long as spreads are tight, and I am seriously thinking of changing.

rog1111

Wouldn't life be good if you could spread trade between the two at times like this, except you'd never get the fills you'd need.
Nice "holy grail" dream anyway. :rolleyes:
 

rog1111

Established member
674 10
ChowClown

Hey that's a good average, well done !

The problem with trying to backtest using close stops like 10 pips is that my 12 month spot data is hourly. Since a lot can happen in an hour, in the first hour, you can't be sure whether your stop would have been hit, and you have to make assumptions, which is why I have sometimes mentioned best/worst scenario.

I have given below some "best" scenario results using your criteria for EUR:$, from hourly data, and although they may be unrealistic, you are unlikely to have done better.

April = - 220
May = - 83
June = + 416

If I could lay my hands on some longer term 1/5/10 minute data then that would help. I have some futures data which I am still looking at, but I don't regard it as adequate for testing GBP, but maybe EUR. I find that the 2 hour restriction does help to take out quite a few losers.

rog1111

ChowClown said:
Rog,

I'm trading the '1-8am (GMT) EUR/USD, 60SL, 2hr entry, 6pm (GMT) exit' (phew) BO.

Since 22nd April '04:

Max DD: 81, currently averaging 11 pips/day, using FXCM (3 pip spread).

If you have the inclination/time and it's not too much hassle, would you be able to include a backtest of the '7-10am (GMT) EUR/USD, 10SL, no entry time restriction, 11pm (GMT) exit' - for Apr/May/Jun spot.

Thanks.
 

rog1111

Established member
674 10
I guess that the futures would be the tricky fill, and that you'd need some automated arb'ing software and super fast direct connection to even get close. It would be nice though, 40 pips is a LONG way out of line ! It makes you think, that suppose you had the clout to create such large temporary spreads (as the comms do), then you could also be ready and waiting with your arb trades

rog1111

jimvt said:
Wouldn't life be good if you could spread trade between the two at times like this, except you'd never get the fills you'd need.
Nice "holy grail" dream anyway. :rolleyes:
 

rog1111

Established member
674 10
Mind you, even poor fills would probably suffice to make a profit at such times. I have a little piece of software that monitors IB's currency spot vs futures spread at all times, but I've never run it for more than a few minutes. It'll be interesting to try it out and see how much deviation occurs, even on a "normal" day.

rog1111

jimvt said:
Wouldn't life be good if you could spread trade between the two at times like this, except you'd never get the fills you'd need.
Nice "holy grail" dream anyway. :rolleyes:
 

TRADERguy

Active member
122 3
rog1111 said:
Wow, there were some large short term spikes today on
rog1111 said:
US data release. I got hit with -72 pips on GBP futures. Ouch !



Interestingly though, comparing Globex with FXCM charts, the GBP futures spike was about 40 pips bigger than the spot spike & the EUR futures spike was ca 11 pips larger than the spot. I guess the futures are far easier for the big players to move due to less liquidity, and although I am loathe to admit it, this just might make a case for trading spot rather than futures, particularly for GBP, as long as spreads are tight, and I am seriously thinking of changing.



rog1111




Spikes that are out of line with the cash usually occur in a fraction of a second on economic releases. Enough traders in the futures click on the release that the price gets out of line with the cash and is brought back into line by arb computers within a small fraction of a second. Today there was a double whammy when the Philly Fed was release early and the first release was wrong. Whipsaw city.

 
 
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