kako
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Hi sun123
I don't know if it is possible but take a look:
http://www.forexvan.com/files/benefits.htm
they claim 0 pip spread&comission!! personally i don't believe it otherwise there should be a very nice re-quoting ......(I don't mean to offend someone but this is my personal opinion).
I'm a beginner, but about spreads i think the spread brokers identify in their websites are not the only important thing, but as Roberto said you should care about spread expantions in special market times(news releases , etc.). with my really low experience with forex I've seen some 4 pips spread brokers expand the spread up to 7~10 pips during several hours.
cheers
Kako
I don't know if it is possible but take a look:
http://www.forexvan.com/files/benefits.htm
they claim 0 pip spread&comission!! personally i don't believe it otherwise there should be a very nice re-quoting ......(I don't mean to offend someone but this is my personal opinion).
I'm a beginner, but about spreads i think the spread brokers identify in their websites are not the only important thing, but as Roberto said you should care about spread expantions in special market times(news releases , etc.). with my really low experience with forex I've seen some 4 pips spread brokers expand the spread up to 7~10 pips during several hours.
cheers
Kako
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sun123 said:
Hi Sun,
You will find a lot of messages on other threads regarding these, but while agreeing with the others on this thread I would like to say that with D4F its not always the price you see that you get. Such companies have a policy of RFQ, which means when you hit the bid/ask it sends a message to one of the traders, who will then change the price if he thinks necessary. Technically the explanation is that they don't want to give out a "stupid" price and would rather check with a trader so that no errors take place, but in reality, if by then, the price has moved against them(usu. 2 ticks or so.) , they will requote, and if it has moved in their favour, they will fill it at the original price. In fast moving markets, obviously it will be a big problem, since the requote might be miles away, but then don't expect retail customers to be filled under all market conditions, such as payrolls etc.
While recognising and exploiting the conveniences of Spreadbet firms, if it is better execution that you need, I would recommend Oanda. 1.8 pips EUR/USD and they seem transparent to me - the reason they widen spreads is to reflect the underlying risk - I am actually more comfortable with someone who does that. Also, they have a discussion forum on their site where customers can post potentially harmful information for them - it just shows the degree of transparency. AUD is 2 pips, GBP is 4(in reality it might be better than the 3 pips with D4F!)
The other option to explore is Direct Access trading.... am still looking at the various alternatives. The spreads are the tightest via this route, but tradeoff is you need more volume!
Good Luck...
Blithe
sun123 said:
Personally haven't had a lot of problems with stops - expect slippage during fast markets, but otherwise generally OK. In this case they already are aware of the order beforehand, so I suspect it must be automatic execution once the bookie puts it in the system.
Globex commissions are way lower than what you think - Per pip move for a contract is $12.50, and the total commission for a trade is $3.20 or so.....i.e. total spread is way less than 1.50 ticks...this is the link I came across.
http://www.cme.com/clearing/clr/fees/nonmember1866.html
As for which is better, its a personal decision - each has pros and cones. Futures markets are more volatile than spot, and you can expect more whipsaws. And if you are directly trading on the exchange, you get best execution, since in a spreadbet firm the firm is the counterparty.
If you are starting off, I think its best you stick to spreadbetting until you learn the game, and when your volumes reach a considerable size consider Direct Access Trading. If you are trading once or twice a day, one pip is not going to make a huge difference in spread terms. On the other hand, scalpers or people trading several times a day will obviously find the extra commission eating into their profits. Also, if you trade a variety of markets, in a spreadbet company you will find them all in one place with reasonably tight spreads, low minimum bet size and massive leverage. And to the best of my knowledge its taxfree (don't want to open a pandora's box here!)
Ciao,
Blithe
sun..a lot depends on what fx cash feed you have , esignal seems to list most deals and is all over the place , but i think your right , but it's of little bother or use to me!!! p.s. jack why change to cfd as i'm certain spread is same as spread bets?( cmc)
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i think there maybe an fx firm also called cmc? not sure , but yeh cfd's are like posh spread bets , but marketed at larger clients and therefore sometimes cheaper , but not with cmc , just get best deal u can , globex is a nice fx mkt!! p.s. is thread hijacked yet or do we need some more of my claptrap?
