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More Volumes = Best Broker (study on some brokers)

  • #21
  • Jul 28, 2015 5:35pm Jul 28, 2015 5:35pm
Quoting FXKabab
{quote} Anyway, I would also assume that the more tick (activity) the lower the spread and the less chance of slippage and requotes?
Impossible to say without knowing how broker operating. But all these ultra low spread brokers looks a bit strange for me.
Some brokers offering 0.2 spread on EUR/USD. It means their LP feed should come with 0.1 spread and some even bigger vendors trading without spread? Sounds like a charity to me. Most of ECN brokers state in their terms and conditions that in some situations they will act as counterparty.
At the moment Pepperstone offering 0.1-0.2 spread. So how their LP making money?
  • #22
  • Jul 28, 2015 6:18pm Jul 28, 2015 6:18pm
Quoting johnnycash
{quote} Impossible to say without knowing how broker operating. But all these ultra low spread brokers looks a bit strange for me. Some brokers offering 0.2 spread on EUR/USD. It means their LP feed should come with 0.1 spread and some even bigger vendors trading without spread? Sounds like a charity to me. Most of ECN brokers state in their terms and conditions that in some situations they will act as counterparty. At the moment Pepperstone offering 0.1-0.2 spread. So how their LP making money?
Market makers can set the spread as low as 0 because they have the full control. Interbank spread rarely goes below 0.6 pips so all those brokers offer ultra low spread and very high leverage are market makers. For example, tickmill, ic market, global prime, etc.. The worst thing is that they have balls to call themselve TRUE ECN. They must believe most traders will never discover their true color. Market maker business model is not a problem but cheating on the crowd is a problem. Pepperstone may not make any money if the spread is 0.2 pips, but they can constantly slip your order 2-3 pips or slip your order 10 pips once a while to make the profit back. If the spread stay at 0.2 pips all the time, those brokers will bankcrupt very quickly.
  • #23
  • Jul 28, 2015 8:05pm Jul 28, 2015 8:05pm
Quoting mry2001
{quote} Market makers can set the spread as low as 0 because they have the full control. Interbank spread rarely goes below 0.6 pips so all those brokers offer ultra low spread and very high leverage are market makers. For example, tickmill, ic market, global prime, etc.. The worst thing is that they have balls to call themselve TRUE ECN. They must believe most traders will never discover their true color. Market maker business model is not a problem but cheating on the crowd is a problem. Pepperstone may not make any money if the spread is 0.2...
i have worked in institutional platforms before spreed is zero most of time they get money from commissions .

have a nice day sir
focus while relaxed to see better
  • #24
  • Edited 5:18am Jul 29, 2015 3:54am | Edited 5:18am
Quoting johnnycash
{quote} Impossible to say without knowing how broker operating. But all these ultra low spread brokers looks a bit strange for me. Some brokers offering 0.2 spread on EUR/USD. It means their LP feed should come with 0.1 spread and some even bigger vendors trading without spread? Sounds like a charity to me. Most of ECN brokers state in their terms and conditions that in some situations they will act as counterparty. At the moment Pepperstone offering 0.1-0.2 spread. So how their LP making money?
</p>
Hi,John.
i agree.
i always doubt pepperstone and i always thought how make money their LPs?
I asked pepperstone.who is your prime broker?
their answer,
the name of the prime broker I cannot give out due to confidentiality agreement.
  • #25
  • Jul 29, 2015 4:29am Jul 29, 2015 4:29am
Any ECN, STP and DMA abbreviations doesn't make any sense at retail level.
When most of the customers deposit 100-2000 dollars (euros) and 90-95% of them lose anyway - all you need is nice banner on your website which says "ECN", 0.1 spread and properly manage risk to take another side of the bet.
If you guys want some "real" volume and trading - start trading e-micro futures.
  • #26
  • Jul 29, 2015 12:50pm Jul 29, 2015 12:50pm
Quoting orabi
{quote} i have worked in institutional platforms before spreed is zero most of time they get money from commissions . have a nice day sir
then why u now work with a market maker? doesnot make sense to me.
  • #27
  • Edited 2:31pm Jul 29, 2015 2:15pm | Edited 2:31pm
Quoting mry2001
{quote} then why u now work with a market maker? doesnot make sense to me.
Hi i was managing some sort of big accounts for some customers so i saw how things are done there i managed with(baxter -fx,hot spot ,Currenex and interactive brokers )

at baxter it was 100kilos
at hotspot it was 70kilos
at currenex it was 50 kilos
at interactive brokers it was 500kilos

i trade my own account now a days

the spread is zero most of time they make money from commissions .

have a nice day sir
focus while relaxed to see better
  • #28
  • Jul 29, 2015 2:57pm Jul 29, 2015 2:57pm
i think there are some brokers staff here .. why are they not telling us the secrets of earning money of brokers ? bundle of traders want to know the exact answer ..
and how to findout the real volume ?
  • #29
  • Jul 30, 2015 11:50am Jul 30, 2015 11:50am
Quoting mry2001
{quote} Market makers can set the spread as low as 0 because they have the full control. Interbank spread rarely goes below 0.6 pips so all those brokers offer ultra low spread and very high leverage are market makers. For example, tickmill, ic market, global prime, etc.. The worst thing is that they have balls to call themselve TRUE ECN. They must believe most traders will never discover their true color. Market maker business model is not a problem but cheating on the crowd is a problem. Pepperstone may not make any money if the spread is 0.2...

You're wrong.

The spread is about 0-0.2 and fees are about 6 dollars per mio (10 lots) if you trade a high volume monthly. So a global spread of 0.2-3. Fx brokers with several billions of volume per month get that kind of pricing. That's the core of the broker's business and not just in financial markets.
  • #30
  • Jul 30, 2015 7:55pm Jul 30, 2015 7:55pm
Quoting johnnycash
Isn't it just a tick volume, not actual orders volume? Because all that you trying to measure here - how many times price changed per given period of time.
thank johnnycash for this rational glance!
i might agree with you.
for example crosses: if there is a movenet on EURUSD while NZDUSD is stable!! eurnzd should move for price math correction "compatibility" --
  • #31
  • Jul 31, 2015 6:11am Jul 31, 2015 6:11am
Quoting Alraqeem
{quote} thank johnnycash for this rational glance! i might agree with you. for example crosses: if there is a movenet on EURUSD while NZDUSD is stable!! eurnzd should move for price math correction "compatibility" --
You are right. Crosses are just derivatives of major pairs. For example: USD/CHF price divide by USD/CAD price and you'll get CAD/CHF price. MT4 volume (tick or real) on crosses don't have any value at all. It's just reflection on what's going on somewhere else.
Some crosses such as EURJPY or EURCHF are traded heavily on it's own, but some big boys still needs two major pairs open position in these pairs.
In my opinion all you can get in FX is just volume of particular broker. That's it. And it's just opinion of brokers clients on where market will go.
I think this kind of information is worthless and it's just waste of the time, that can be spent on something more valuable.
  • #32
  • Jul 31, 2015 7:38pm Jul 31, 2015 7:38pm
Quoting johnnycash
{quote} You are right. Crosses are just derivatives of major pairs. For example: USD/CHF price divide by USD/CAD price and you'll get CAD/CHF price. MT4 volume (tick or real) on crosses don't have any value at all. It's just reflection on what's going on somewhere else. Some crosses such as EURJPY or EURCHF are traded heavily on it's own, but some big boys still needs two major pairs open position in these pairs. In my opinion all you can get in FX is just volume of particular broker. That's it. And it's just opinion of brokers clients on where...
do you have any source related to market liquidity? money inflow? etc...
  • #33
  • Aug 1, 2015 4:39pm Aug 1, 2015 4:39pm
[quote=orabi;8408149]{quote} Hi i was managing some sort of big accounts for some customers so i saw how things are done there i managed with(baxter -fx,hot spot ,Currenex and interactive brokers ) at baxter it was 100kilos at hotspot it was 70kilos at currenex it was 50 kilos at interactive brokers it was 500kilos i trade my own account now a days the spread is zero most of time they make money from commissions . have a nice day sir
  • #34
  • Aug 2, 2015 10:28am Aug 2, 2015 10:28am
Quoting Alraqeem
بسم الله الرحمن الرحيم this thread will be dedicated for special study of four famous forex brokers: ACTIVETRADES- - OANDA_UK- LCG - Fxpro (may include others) We are goint to compare theier volumes according to metatrader VOLUME statistics. in advance I can arrange them like that: LCG then Fxpro then active-trades and finally OANDA-UK. TO BE CONTINUED
Your idea is very interesting. Please keep in mind this can be a very huge task if you extract volume data from each server the broker uses. For instance a broker may have 20 servers while other may have only 5 servers. Both may have equal amount of total volumes. Eventually, you will be compiling partial data leading to misleading results.
Meditate -> Workout -> Good Food = Good Life!
  • #35
  • Jun 13, 2020 4:10pm Jun 13, 2020 4:10pm
thanks all,, so which broker offer best tick volume? please
why my IC Market acct gives very low volume last week?
Attached Image (click to enlarge)
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  • #36
  • Edited 3:16pm Jun 14, 2020 8:29am | Edited 3:16pm
Quoting aVan
thanks all,, so which broker offer best tick volume? please why my IC Market acct gives very low volume last week? {image}
If you are refering to tick volume for Wyckoff or VSA analysis I think Fusion Markets has the better. I have checked IC Markets, FP Markets and also compared expression with FXCM. All with MT4. The cross pairs with Fusion Markets has the least filtering. Then comes FP Markets, and then FXCM. When it comes to ex. EURUSD Fusion Markets has a bit more filtering than FP Markets and FXCM, but still I think it has the best expression for the pair. I checked several brokers some years ago, including LCG. Back then FXCM was the better I think. Many has too much filtering giving a smoothed and rounded picture missing significant details.

Edit: ***Correction***: The "When it comes to ex. EURUSD Fusion Markets has a bit more filtering than FP Markets and FXCM..." statement is partially false. Last week Fusion Markets actually had a higher weekly tick volume than FP Markets. Sorry for the misleading.
  • #37
  • Jun 14, 2020 8:58am Jun 14, 2020 8:58am
I tried your indicator Al Raqeem, but I get a "not custom indicator and will be removed" message. Could someone please help me out?
Attached Image
  • #38
  • Jun 14, 2020 9:27am Jun 14, 2020 9:27am
Quoting Laurus12
I tried your indicator Al Raqeem, but I get a "not custom indicator and will be removed" message. Could someone please help me out? {image}
it s an EA ,, lol ,, you gota put it inside "Expert" folder ,,then run it
,,, I m trying to watch m1 tick volume comparision on myfxbook ,,, for an idea of best tick volume broker
  • #39
  • Edited Jun 15, 2020 4:43am Jun 14, 2020 9:46am | Edited Jun 15, 2020 4:43am
Quoting Alraqeem
{quote} do you have any source related to market liquidity? money inflow? etc...
This is an article by Caspar Marney where they compare tick volume patterns/expression per period compared to real transaction volume with EBS.

What they found is that tick volume has a high correlation to actual transaction volume. The EURUSD 93.8% the GBPUSD 97.9%.

Back in 2013 I did a lot of testing and used MultiCharts to compare volume profile bar by bar comparing the EURUSD and 6E on the CME. When comparing the charts the volume profiles on both charts looked practically the same. If you try using Akif's Market Statistics indicator and use the Histogram (Volume Profile) for a session and compare it to a 6E chart with the Volume Profile attached to it, they will look practically the same.

In my opinion when using volume as described here, including classical volume, it doesn't matter if you don't have real volume. Tick volume is just as good and sometimes also more detailed when it comes to monitoring changes in the market. What matters is that you have clear meaningful patterns compared to price. So when price change feed gets too filtered significant info disappears. For example Dukascopy has their own transaction volume, but you get some weird expressions which deviates from both CME currencies volume expressions and tick volume from other brokers.
Attached File(s)
File Type: pdf price_updates_compared_to_real_volume-caspar_marney.pdf   552 KB | 957 downloads
  • #40
  • Edited 10:05am Jun 14, 2020 9:50am | Edited 10:05am
Quoting aVan
{quote} it s an EA ,, lol ,, you gota put it inside "Expert" folder ,,then run it ,,, I m trying to watch m1 tick volume comparision on myfxbook ,,, for an idea of best tick volume broker
Thanks aVan! A bit rusty here.

Did you read my post (#36)? Try Fusion Markets and see what you get.
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