Hello all
I have always traded spot forex through a market maker, namely OANDA. I have now decided to spread some of my funds out and open accounts at IB and LCG currenex (also known as Capital Forex Pro).
My question is what kind of slippage can I expect to experience with the ecn type models these two brokers employ. As I say, I have only had experience with OANDA so far, but have not really exprerienced any slippage with this broker. They garentee 20,000,000 on any price they offer and I feel like I am paying a slight premium in spreads to garantee execution at or very close to my stop loss (this is very likely to be a faulse presumption so please correct me if I am wrong). What if liquidity falls through on the ECN though. Is 50 pips + likely? (I know anything is possible, but I can stomach the risk if it is minute).
My position sizes are quite small (500k - 1mill, max around 2mill at the present time), but my stops are very tight so a large slip could prove to be very costly.
Cheers all
I have always traded spot forex through a market maker, namely OANDA. I have now decided to spread some of my funds out and open accounts at IB and LCG currenex (also known as Capital Forex Pro).
My question is what kind of slippage can I expect to experience with the ecn type models these two brokers employ. As I say, I have only had experience with OANDA so far, but have not really exprerienced any slippage with this broker. They garentee 20,000,000 on any price they offer and I feel like I am paying a slight premium in spreads to garantee execution at or very close to my stop loss (this is very likely to be a faulse presumption so please correct me if I am wrong). What if liquidity falls through on the ECN though. Is 50 pips + likely? (I know anything is possible, but I can stomach the risk if it is minute).
My position sizes are quite small (500k - 1mill, max around 2mill at the present time), but my stops are very tight so a large slip could prove to be very costly.
Cheers all