Parameters to choose a broker??

mark888

Newbie
1 0
Hi Folks,

I want to trade with Xcalper. they recommend IC-Markets as broker. Is there anyone familiar with IC-Markets?? and What are the parameters while choosing a broker ?? Let me share your experiences of Xcalper please.

Thanks.
 

Shakone

Senior member
2,458 665
Forex is can be very personal as my experience may not necessarily reflect your fate. Anyway the basic parameters with which you can measure your broker are: how tight his spreads and commissions are, how high safe is his leverage, how reliable is his customer service, does he encourage forex education in sort of forex ebooks, his dealing and execution policies etc. Then with the biggest and strictest eyes examine his transparency. Please there is an ill propaganda of the rotund safety and transparency of a regulated broker, don't get drowned in it. Monitor your broker even if regulated and let him prove to you his license. Try research about the Corzine MF Global scandal, and you would see how they intelligently scaled through seemingly loose audits of regulatory bodies till dear Nemesis caught up with them. Ultimately, you need the best of care and caution to survive.

Do you use a translator?
 

Purple Brain

Experienced member
1,613 179
Hey, do either of you by any chance know of any off-shore unregulated brokers where I can scalp with no slippage? But only if you can personally recommend them yourself.

Thanks.

Johnny Appleseed
 
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DigitalGeometry

Junior member
39 4
Hi Folks,

What are the parameters while choosing a broker ??
Thanks.

Retail Traders on Retail Trading Platforms w/o A Custom API Solution:

1) Does intermediary offer a good approximation of an STP/DMA order life cycle
2) Is intermediary competent on back/middle/front office trading technology
3) Does intermediary use a Commission or Spread based revenue model
4) Is intermediary willing to publish the identity of its liquidity providers
5) Does intermediary stream DOM to the trading platform
6) Does intermediary offer API support for FIX protocol
7) Does intermediary have Segregated Accounts [protection of customer funds]
8) Can you open a trading account with a PayPal account and $500.00 [red flag]
9) Do you constantly see trader's reporting problems with the platform:

  • Frozen platform just before news [unable to open or close positions]
  • Frozen platform during news [unable to open or close positions]
  • Repetitive negative slippage [always the worst fill levels at execution]
  • Constant re-quotes
  • Constant Bid/Ask price spikes [not seen on other platforms]
  • Constant gaps in pricing data [irregular bars of data - missing bars of data]
  • Routine spread widening even during highly liquid market periods

With some homework, it is not difficult at all to figure out who you should be trading with, if you are a retail trader in forex.

Red flags are everywhere. You just have to learn how to spot them.

Retail traders in Forex only have 3 viable options these days when it comes to a decent intermediary. In the United States, that number drops to just 2. That means that if your account is U.S. based then you have but two (2) options remaining for a half-way honest shot at trading retail Forex absent most of the above problems:

IB Forex

CitiFx Pro

Neither one of these is perfect - but you can't get perfect in the retail forex business. However, you can escape many of the retail forex broker pitfalls that capture many of the novice FX traders today, by using one of these intermediaries in the United States.

Outside the U.S. (or if you are based in the U.S. but have appropriate credentials for establishing a trading account outside the United States) and if you are a retail forex trader, then DCFX is probably one of the smartest choices for reasons that span the questions above.

One of the aspect not mentioned above is the Speed of Execution you get on the DCFX Currenex-Hub STP/DMA platform at the retail level. And, the overall execution experience gets even better at the Prime Broker level (Institutional Account) level with DCFX. It is one of the lowest latency retail platforms I've ever experienced, outside of an custom API based solution driven by your own signal engine - or decision support trading platform.

There are choices out there, but you will need to do the legwork necessary to find the right intermediary for your own unique trading needs.
 

DigitalGeometry

Junior member
39 4
Hey, do either of you by any chance know of any off-shore unregulated brokers where I can scalp with no slippage? But only if you can personally recommend them yourself.

Thanks.

Johnny Appleseed


I'd advise against unregulated anything for any level of trader. How does the trader know if they will ever see their deposit again, let alone any profits they accumulate over time.

Anyone can open a brokerage off-shore - it is not that difficult at all in low-regulatory environments. The reputation of the intermediary means everything. Segregated Funds, Credit Limits, Default Deposit Limit Requirements, etc. The list of reasons why one should never open an account with an unregulated entity is fairly complete.

If speed is what you need, then you will have to develop your own custom API driven trading platform, or you will need to use an intermediary that offers a platform for retail traders built on the Currenex Hub. There are other options for Institutional level accounts that accommodate the need for speed - but precious few for retail forex outside of an STP/DMA Currenex Hub solution with a commissions based intermediary offering an ECN environment to their proprietary liquidity pool. Keep in mind that in any retail environment, the trader is always going up against proprietary interests and proprietary pricing, not true interbank pricing.

The best retail executions with respect to speed, accuracy and spreads that I have personally witnessed have been with DCFX (see above) on their Currenex platforms. Effective technical scalping requires (at least):

  1. Low Spread Stability
  2. Low Latency
  3. Adequate Liquidity at Execution Levels
  4. Accurate Fills
  5. Sufficient Volatility (the more the better)
  6. A Commission Based and Reliable STP/DMA Platform
  7. A Reliable High-Speed ISP
  8. A Density Probability Based Algorithm for Determining The Location of Price
  9. Consistency & Patience

You can arrange the name of the account in some obscure location, but I would not put the broker's physical footprint over there, especially if "unregulated."

Just my 40 pips worth.
 

Alpari UK

Experienced member
1,502 5
I have experienced too many slippages while with Alpari and it really hurt me bad when I intend closing a deal in less than a minute.

Hi Mightypen,

Orders are never guaranteed because if volatility is high, prices can be missed and we may not be able to obtain a quote for you at the price you requested. Orders are also sometimes filled away from the desired price due to gaps in the market. This occurs because currency prices can sometimes be very volatile or liquidity can be thin.

To add some background, slippage is not an invention of the retail FX market. It exists in the Inter-Bank FX market and has done even as far back as when the principal method of trading was by shouting.

Part of the problem here lies around the execution conventions of certain order types. The convention around Stop Loss orders is that they are open-ended. There is a risk of slippage that is determined by the prices available in the market, but the understanding has always been that these are an "at best" order – because as painful as some slippage might be, it might be a lot more painful if the order just isn't filled at all.

With Stop orders you have to remember that, by definition, you will always be trading in the direction of least liquidity – and some slippage should be factored in. FX is remarkably uncomplicated in this regard. It always follows the path of least resistance. Occasionally this slippage might be modest, but the realistic fact is that when you trade at the point of greatest uncertainty there is no way to pre-define your risk.

The common complaint around slippage really boils down to individuals unhappy that no-one wanted to sell cheaply to them in a rising market or buy at a high price from them in a falling one.

This is not an uncommon criticism, but you need to consider the other side of the equation, which is quite simply -what's in it for them ?
By what right does any participant in the market feel he should be able to deny his counter-party the right to trade at a price that doesn't suit him ?


Alex

________
Alexander Chadwick
Alpari (UK) Representative
 

Purple Brain

Experienced member
1,613 179
First, I would say these brokers that we refer to as "unregulated" are really unregulated.
Thanks for clearing that one up. Many sleepless nights.

The reason why many people say that they are unregulated is because they have their back office in a country other than US, UK or AU. Regulatory bodies in the US, UK and Au are regarded as recognized, while others are not, but they are still regulatory bodies. Regulation has no part to play in making you a successful trader. When it comes to withdrawing money, it might interest you to know that some offshore brokers have better withdrawal systems. If you want a list of brokers that will allow you to scalp plus high leverage, then use the link in my Signature to find a preferred brokers. Be very attentive to details!!!
If I scalp with high leverage, can I be sure my unregulated broker with his back office in an unregulated back passage will be my primary consideration?

Your signature has no link. Is it unregulated?
 

FXColes

Newbie
9 0
There are choices out there, but you will need to do the legwork necessary to find the right intermediary for your own unique trading needs.

For me, minimum deposit is key, which is what attracted me to exel markets (non-us), the minimum deposit is $200 and I rate their support service for sure - I have to say, with specific reference to the latency issue, this boker I find very good on that side of things, a reliable platform.

I'm always on the look-out for a better deal, though, so thanks for the thread, guys!
 

rrayne20009

Junior member
31 0
Choosing a broker is not an easy task for any new or experienced trader.The real challenge in choosing a broker comes when you have to determine what attributes you are looking for.The best way to test a broker's performance is by signing up a free demo account with them.
 

daytrader221

Junior member
10 0
When I choose a broker I look at a few things:

1. Trading conditions (often not everything is easily found with a lot of brokers)
> This is the main point and a big topic that should probably be broker down into its own subcategory
2. Regulation/jurisdiction
3. Payment options
4. Platform
5. Support options
 

icmarketsfx

Member
61 4
Hi Folks,

I want to trade with Xcalper. they recommend IC-Markets as broker. Is there anyone familiar with IC-Markets?? and What are the parameters while choosing a broker ?? Let me share your experiences of Xcalper please.

Thanks.

IC Markets True ECN account is ideal for extreme scalping. IC Markets offers really tight spread EUR/USD 0.0 pips in normal situations and charge very nominal fee as compared to other ECN brokers.

You can search google for IC Markets Discounts
 
Last edited:

Sigma-D

Established member
648 62
You can search google for IC Markets Discounts
You said in an earlier post that brokers who offered discounts and bonuses were not to be trusted.

Are you trawling just about every thread even those only remotely associated with brokerages in order to pump your own enterprise? If you want that level of advertising, shouldn't you be doing a deal with the advertising person for this site and paying per impression like all the others, or did you think you'd do it on the cheap?

Are you the same IC Markets company/group that operates out of Australia?
 
 
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