Some brokers are great for News Trading, some are not.
News trading requires:
1. Fast execution of order - which means no slippage
2. No widenning of spreads - which means no stop hunting
It has come to our attention that ECN is becoming the norm for news trader who wants NO SLIPPAGE. But ECNs are notorious for enlarged spreads. On a simple/minor news, you could experience 20 pips spread! So thats the price for paying for no slippage - its slippage in the disguise of widened spread.
I have been trading with FXCM for 2 months now. I know it is not the best broker for news trading. However I find something that I can take advantage of them.
On other brokers (like ECNs and OANDA), you'd probably be pissed with the enlarged spreads which makes you unable to play the minor news.
Here is where our most hated broker FXCM shines. FXCM does not monitor minor news like CAD CPI, or GBP Rate Hike, or US Durable Goods. I can freely place any orders I like without fear of widen spreads. And to be a winner, I have to place the Entry orders really close to the last second price...
What are your stories with your brokers? Please share your experience on how to take their advantage.
News trading requires:
1. Fast execution of order - which means no slippage
2. No widenning of spreads - which means no stop hunting
It has come to our attention that ECN is becoming the norm for news trader who wants NO SLIPPAGE. But ECNs are notorious for enlarged spreads. On a simple/minor news, you could experience 20 pips spread! So thats the price for paying for no slippage - its slippage in the disguise of widened spread.
I have been trading with FXCM for 2 months now. I know it is not the best broker for news trading. However I find something that I can take advantage of them.
On other brokers (like ECNs and OANDA), you'd probably be pissed with the enlarged spreads which makes you unable to play the minor news.
Here is where our most hated broker FXCM shines. FXCM does not monitor minor news like CAD CPI, or GBP Rate Hike, or US Durable Goods. I can freely place any orders I like without fear of widen spreads. And to be a winner, I have to place the Entry orders really close to the last second price...
What are your stories with your brokers? Please share your experience on how to take their advantage.