Is Your Fx Broker Robbing You Blind? Test 'em!

I found that in testing fill rates for trading equities, I got Huge differences in both spreads and fill speed, when comparing various brokers.. especially for fast-moving stocks.

Have any of you thought about testing out 2 or more fx brokers, by opening accounts at 2 of them, and executing trades in the same pair, at the same exact time, with the same size?

Then comparing for spread differences, fill speed etc?

There's thousands of dollars to be saved each year, since it all Really adds up, (as commisshes and spreads did for us equity traders), by comparing and shopping around, and executing live real-time TESTS, to see who gives the best fills, the fastest, with the lowest spreads/pip differentials.

Anyone try testing 2+ fx brokers?

I'd start by testing broker a vs broker b, over 12-15 fills, during a given week... Then close the account with the worst one, and open a new account with a third broker, c.. then testing a vs c etc..

What are Your Ideas, on the BEST ways for how to best test out brokers for spreads/fill speeds/costs?


Ken

HI Ken,

You said testing them for a single week but I think it's not long enough to be a very representative sample (though to some extent it still say something about that broker). Perhaps may be 2 - 3 weeks.

Good point re 2-3 weeks - agree.

Anyone test out fill speeds, slippage and costs using various fx brokers, eg simultaneous order executions, to check which work best?


ken