It depends on the currency you trade but Deal4Free offer 3 pips on Euro-£ and 4 pips on Euro-$ and $-Yen. Others are 5 pips. Trading with a spreadbetter has no commission and is tax free. Hotspotfx charge a commission on top of their spread. We've worked out on other threads on this board that small bets/trades are cheaper through spreadbet companies and larger bets/trades are better through small spread/commission based brokers - so it depends on your trade size.
I took this from one of Hotspotfx's slides on their website...
"The power of earning a spread. As a client, if you can earn 5 points, once a day, on $20 million………….You can earn an additional $200,000 per month……Which is $2,400,000 per year!"
Perhaps they're just in a different league from me.
MMillar Cheers for the input but they have a min trade of 100k so at $5 per trade its only 1/2 pip and you can get that back by going inside the spread. I went on one of (alan rich) L2 course's last year and i am just trying to put it to work on FX instead of the nasdaq.
Hi I just found this forum...nice to meet you guys. I've been trading forex for quite a while in banks but only been doing it for a short time for my own account. I looked at alot of online brokers but chose Hotspot mainly because I had alot of respect for some the guys who started the company a few years ago. I have found the system to be the most like what I used when I was in the interbank market (EBS). I am very happy with the system, especially the trade execution (instant with no requote like some of the ones I looked at) and spread as well as the stop loss executions. They treat me as if I was an interbank dealer rather than a small time punter which is more than I could have hoped for when changing over to this side of the business. Trading inside the spread is a bonus, and even though I don't always use it, the commission is minimial, only 1/2 a pip really on 100K. Cheers and good luck to you
I have taken your advice and will open a Hotspot account to see how it behaves in the flesh .
Does Hotspot - or any other FX broker offer interest payment on the invested amount?
OANDA has the 'habit' of calculating interest (and paying or withdrawing) on open positions.
Holding a long EUR/USD open for say, EUR300K will pay appx USD30 daily in interest.
However, this was exactly the point I was trying to make:
With OANDA, say you have gone long on GBP against, say USD.
As holding funds in the OK would pay you , say, 3.75% interest (assume negligible inflation for a sec) if you held a long position of say 1MM GBP/USD for 5 hours, you would earn 18 USD interest in your account.
Any HotSpot trader that reads this that can commentif Hotspot pay like this on open positions?
Check the calculator out - make sure you put a time variable otherwise the calculator will not work.
Hotspot does not pay the same way Oanda does on open positions by the minute. I went on Oanda's calculator and it is quite interesting, but also note that they will charge you if you are the other way around, so it all evens out in the end.