Refco sales blurb

jimvt

Active member
164 1
Just got an email from Refco claiming a lower spread for EURUSD than anyone else (3 pips). They are claiming:

"Many firms claim to offer 3 pip spreads, yet they only execute your trade if they believe it is in the wrong direction. RefcoFX will execute the trades in either direction based on a 3 pip spread. "

Truth or BS anyone?

The full email:

At RefcoFX, EUR/USD is our most popular currency pair, composing 60% of our trading volume. RefcoFX generally executes billions in EUR/USD trades per month, which is more volume than many of RefcoFX’s competitors do in trades for all their currencies pairs combined over much longer time periods.

As a result of this volume, RefcoFX can command the best prices and execution from our network of international banks. We are passing along these benefits and the resulting lower transaction costs to our clients.

Starting on June 20, 2004, we are lowering spreads for RefcoFX 100K accounts. The new bid-ask spread on EUR/USD trades will be 3 pips, as opposed to the former spread of 4 pips. Many firms claim to offer 3 pip spreads, yet they only execute your trade if they believe it is in the wrong direction. RefcoFX will execute the trades in either direction based on a 3 pip spread.

Spread is not the only consideration when choosing a dealer. A tight spread is only meaningful if the dealer offers superior execution. RefcoFX’s execution stands out because we honor our quotes. You always get executed at the price you hit.

We offer consistently tight spreads. Our spreads remain the same day or night, even in a fast moving market.

RefcoFX guarantees no slippage on Stop-Loss and Limit orders.
 

BBB

Experienced member
1,071 3
I dont get it. Why trade spot anyway?

EURUSD: 3 pip spread @ $10 = $30 per lot in costs
EuroFX(Future) : 1 tick spread @ $12.5 + $5 rt = $17.5 costs per lot

HALVE YOUR COSTS!


And they say trading is a business......
 

JonnyT

Senior member
2,560 22
Agreed.

The only justification can be if you are using mini lots to try out trading.

JonnyT
 

darktone

Veteren member
3,992 1,044
BBB said:
I dont get it. Why trade spot anyway?

EURUSD: 3 pip spread @ $10 = $30 per lot in costs
EuroFX(Future) : 1 tick spread @ $12.5 + $5 rt = $17.5 costs per lot

HALVE YOUR COSTS!

And they say trading is a business......


JonnyT said:
Agreed.

The only justification can be if you are using mini lots to try out trading.


Surely it depends on style and time frame, if your a scalper/intraday player then i can see the sense in futures/DA. If you play over the long term i can see the sense in Sbets. If your a news/event player then i can see the sense in a good broker.

More than one way to skin a cat and horses for courses imho.
 

Simon

Active member
133 1
darktone said:
If you play over the long term i can see the sense in Sbets.

True, but Refco do not offer an SB product, do they?
 

jimvt

Active member
164 1
BBB/ JonnyT

How do futures compare with spot in terms of (very) short term noise? Are they noisier in the same way that index futures are noisier than cash?
 

JonnyT

Senior member
2,560 22
Similar to the interbank, less noisy than the bucket shop brokers who peddle the spot and make their own markets.

JonnyT
 

goshort

Junior member
20 2
Johnny T

I use ]www.oanda.com and they charge 2 pips. I have been with them some time and I have never really had a problem with them even when the market moves very quickly after a number.

Rgds

Paul
 

darktone

Veteren member
3,992 1,044
JonnyT said:
Similar to the interbank, less noisy than the bucket shop brokers who peddle the spot and make their own markets.

JonnyT

Indeed.. but.. competition for clients is stiff which means brokers are falling over themselves to offer the world in execution, something that futures can never offer. Id much rather face NFPR paying 3 pips than have the dreaded shadow of slippage hanging over me :eek:
Most are 3 wide on E now,how long before 2 pips becomes the norm?..


True, but Refco do not offer an SB product, do they?

no,, they dont.
 

gus

Active member
210 0
Have been using this demo for a couple weeks - http://www.rjofx.com/index.htm
Old firm - R J Obrien but with a nice charting program. I'm switching from futures - the CME can stick it - I'm tired of paying their fee's.
 
 
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