GFT Reduces Forex Spreads

Got an email yesterday, anyone got any feedback on the lower spreads? I'm with alpari and I have never seen the spreads widen although they are variable.

Looks to good to be true for a deal desk so if anyone can offer some feedback be much appreciated!

Currency pair

Spreads now as low as

EUR/CHF 1
EUR/GBP 1
EUR/USD 1
USD/JPY 1
AUD/USD 2
CHF/JPY 2
EUR/JPY 2
GBP/USD 2
USD/CAD 2
USD/CHF 2
AUD/JPY 3
CAD/JPY 3
NZD/JPY 3
NZD/USD 3
EUR/AUD 4
EUR/CAD 4
GBP/CHF 4
GBP/JPY 4
GBP/AUD 6

yea they lowered these 2 days ago

used the new spreads yesterday but only got eur/usd -3 I think

are they fixed?

Just spoke with the dealing desk and they say the spreads are " VARIABLE ".

hahahahhaha

hmmm just what i thought, thanks for letting me know

I'm using alpari as well. I love their spread. Although i have the problem lagging movement price(somtime). And they did not offer live help support. But, i still loving them, at least they email me back as soon as posible.

By the way, I still nvr achieve a GJ spread wif 4. Looking for it soon.

This was taken around 8:50am

http://img187.imageshack.us/img187/4905/spreadsds4.jpg

I've received 1 pip spreads, and I see 2 pip spreads most of the day on the majors. Never quoted past 3 on the majors, even during NFP this month.

Clif

Newbie here.

The spreads are indeed 1 pip lower on a lot of the major pairs.

I suspected that GFT is trying to counter the effect of ECNs on trading. Traders don't want a market maker trying to get between them and their entry price, and an ECN is designed to eliminate the middleman by showing what other banks are offering by way of spreads; with GFT, and without an ECN, you use their spreads alone, because you place bids through their bank alone -- you don't get to shop and compare spreads.

More detail in this pdf.

+++ EDIT +++

Apparently, ECNs are installed by brokers, not by individual dudes who stay at home and trade in their bathrobes. My mistake. (As I said, I'm a rank amateur.) And some of the reviews are not kind:

Low life scum!!! Can't trade the news, bad fills, deal book web just impossible to use.

I'm not posting a link; just google that phrase and you'll get to the site I mean.


GS ECN Forex

wow nice! They reduced spread this much! sweet.

But have they reduced execution delay yet? From experience, their execution delay is horrible though.

been monitoring all day never saw 1 pip spread though

Currently a 2 pip spread on USD/JPY. I have never seen a 1 pip spread on this pair.

are there 1 pip spreads most of the time during europe and ny morning? how is execution?

I posted a thread discussing variable spreads.

The variable spread is a marketing ploy to lure you into believing you are getting a deal.

With a variable spread you may get in at the lowest spread but that doesn't matter. It only matters what the spread is when you get out.

If you watch the spreads closely you will notice they are low at times when you don't want to trade (off market hours, no activity) and move up at times when trading opportunities are best. So, you might get in when the spread is lowest but, it might go up to the max when you want to get out.

With a variable spread ALWAYS assume you are paying the high end.

The spreads are variable with a "cap" The cap has a disclaimer about extreme market conditions, but generally you will see the median.

Example:

EUR/USD - As low as 1 - High as 3 - Usually see 2.

Not just a ploy, its the way the business is done.

yeah I noticed it was 2 even during london open... so I uninstalled the demo. I had just heard it was 1, so was getting excited oh well, even if it was 1 I find the platform confusing... and too `skinned`.. give me a plain windows interface anyday... although the sounds are pretty polished

There is the Web based version, and also Licensed reps to walk you through the platform. Just an FYI.

2 pips in EU is just not competitive anymore. It is available with nearly every broker.

Regards,
K.