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Need your advice on account conditions

  • #1
  • First Post: Aug 24, 2008 7:01pm Aug 24, 2008 7:01pm
Hi Guys, my Forex account has reached 100000 EUROS last week. This is no joke!
My broker called me and offered me better account conditions as:

GBP/JPY 3 pips
Eur/GBP 2 pips
AUD/USD 3 pips

the other pairs with +/- standard spread.

And a cutted trading session:
Fridays 1 hour less and sundays 1 hour later.
Is this trading session cut usual and the spread acceptable for that account Balance or shouldt i refuse the offer?
And how tight is spread on EUR/USD, USD/JPY and GBP/USD whis this account size on a Metatrader Broker normaly?

Thank you!
  • #2
  • Aug 25, 2008 12:16am Aug 25, 2008 12:16am
Quoting denkhaus
Hi Guys, my Forex account has reached 100000 EUROS last week. This is no joke!
My broker called me and offered me better account conditions as:

GBP/JPY 3 pips
Eur/GBP 2 pips
AUD/USD 3 pips

the other pairs with +/- standard spread.

And a cutted trading session:
Fridays 1 hour less and sundays 1 hour later.
Is this trading session cut usual and the spread acceptable for that account Balance or shouldt i refuse the offer?
And how tight is spread on EUR/USD, USD/JPY and GBP/USD whis this account size on a Metatrader Broker normaly?

Thank you!
I get g/j 7, eur/gbp 3, and aud/usd 3 so the spread offered is not too bad, especially with g/j. The session changes are no problem really because nobody seriously trades in the first/last hour of the session usually.

If the offer is better than you currently have, then I say accept it.
  • #3
  • Aug 25, 2008 5:18am Aug 25, 2008 5:18am
thank you oakmonster,
but what may be the reason for this session time cut? Do they afraid they cannot hedge bigger positions properly due to less liquidity in the market?
  • #4
  • Aug 25, 2008 6:22am Aug 25, 2008 6:22am
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
strange.... which broker is it?
  • #5
  • Aug 25, 2008 7:21am Aug 25, 2008 7:21am
well, Alpari UK. I spoke to the representative today and he explained that the trades go directly to Deusche Bank Clearing and there market hours is as described above. Until now my trades were heged inhouse.
  • #6
  • Aug 25, 2008 7:40am Aug 25, 2008 7:40am
Quoting denkhaus
Hi Guys, my Forex account has reached 100000 EUROS last week. This is no joke!
My broker called me and offered me better account conditions as:

GBP/JPY 3 pips
Eur/GBP 2 pips
AUD/USD 3 pips

the other pairs with +/- standard spread.

And a cutted trading session:
Fridays 1 hour less and sundays 1 hour later.
Is this trading session cut usual and the spread acceptable for that account Balance or shouldt i refuse the offer?
And how tight is spread on EUR/USD, USD/JPY and GBP/USD whis this account size on a Metatrader Broker normaly?

Thank you!
Are the spreads fixed? What time did they say they were going to close on Friday and what time did they say they were going to open on Sunday?
  • #7
  • Aug 25, 2008 9:01am Aug 25, 2008 9:01am
Quoting denkhaus
well, Alpari UK. I spoke to the representative today and he explained that the trades go directly to Deusche Bank Clearing and there market hours is as described above. Until now my trades were heged inhouse.
I think you should accept their proposal...clearing through a real bank sounds good.
  • #8
  • Aug 25, 2008 9:30am Aug 25, 2008 9:30am
Sounds good but the chance of that actually being the case is about 1% at best.
  • #9
  • Aug 25, 2008 12:40pm Aug 25, 2008 12:40pm
Quoting fxtrader42
Sounds good but the chance of that actually being the case is about 1% at best.
Does it?
How often do we receive proposals like this? If I pay the price and I am happy why would company contact me and offer a better prices and at the same time trying to limit my trading sessions? For me, personally, that means I do something, what hurts their business, and for this reason they offer me a deal.

Not a statement Just guessing!

Good luck everybody
  • #10
  • Aug 25, 2008 1:07pm Aug 25, 2008 1:07pm
Thank you all !!

Until now spreads were fixed, even during news-times, its flexible now and little spread widening happens during news.
The symbols in Metatrader became e.g. EURUSD -> EURUSD-fx
Trading session times (GMT +1): from Sunday 00:00 to Friday 22:00
Seems that for small accounts the last hour of the old week and the first hour of the new session is heged inhouse.
Now i trade directly with the bank. So far no complaints. But who knows.

Keep pipping!
  • #11
  • Aug 25, 2008 3:11pm Aug 25, 2008 3:11pm
Alpari is a very good broker, i use them and i do believe the offer they gave you is very good.
know thy edge and abide by it ! 4 in it shall thou be successful !
  • #12
  • Aug 25, 2008 4:59pm Aug 25, 2008 4:59pm
Quoting oakmonster
...The session changes are no problem really because nobody seriously trades in the first/last hour of the session usually...
lol Depends on your style, to say nobody trades in the first or last hour of a session is too funny....these are some of the most active market times, for scalping this is prime time! Trust me more people trade during this time than other times. To the OP consider the deal based on how you trade, if this will be an impact then I would not take the deal. Also keep in mind if your used to instant fills at your exact price this will not be as likely depending on Alpari's liquidity pool. Also if these spreads are fixed I would go elsewhere. During an active market the spreads can get very narrow and during a slow market the spreads may widen a bit to about the point they are offering in your "deal". If you are going to start dealing with the big boys (STP through banks, Hedge funds etc) I would check out a Currenex Prime Broker or White Label Partner or perhaps Dukascopy depending on your trading style. Then again if you are a long term trader meaning anything on the 1HR chart or more then it should not be a big deal. Just my .02
  • #13
  • Aug 25, 2008 6:09pm Aug 25, 2008 6:09pm
You may have an issue here with risk management.
You shouldnt be restricted in trading hours.
There are plenty of brokers who dont have this restriction.
The reason perhaps they have limited you is because they feel they cant make money from you.Thats is the downside of dealing with a Market maker.
I would be looking at an ECN with liquidity, that has no time restriction and you determine the spread by bid or offering.
  • #14
  • Aug 25, 2008 8:05pm Aug 25, 2008 8:05pm
Quoting denkhaus
Thank you all !!

Until now spreads were fixed, even during news-times, its flexible now and little spread widening happens during news.
The symbols in Metatrader became e.g. EURUSD -> EURUSD-fx
Trading session times (GMT +1): from Sunday 00:00 to Friday 22:00
Seems that for small accounts the last hour of the old week and the first hour of the new session is heged inhouse.
Now i trade directly with the bank. So far no complaints. But who knows.

Keep pipping!
I can guarantee you that you arent trading with Deutsche bank, in fact if you want I will bring up my live pricing from DB and you can tell me what you are seeing to compare.
  • #15
  • Aug 25, 2008 9:05pm Aug 25, 2008 9:05pm
I beleive that the reason for the proposed change would be that the broker does not want to hold the risk on any of your trades because you are probably swinging a pretty big line (comparitively) but still wants to collect a little peice on the commission or markup that they are charging you by passing your trades directly to the bank (hence the better pricing)

That is the idea behind an STP model(collect a small premium but take zero risk) and in your case it would make sense because im assuming that you didnt grow your account that size by logging losing trades

Long story short if someone on the dealing desk screws up it will cost them a lot of money and wouldnt be worth the risk.
  • #16
  • Aug 26, 2008 12:06am Aug 26, 2008 12:06am
Thank you guy's for the help. I think the session cut has to do with the new order routing. I belive them. They never traded against me. No platform downtime at all.
  • #17
  • Aug 26, 2008 1:34am Aug 26, 2008 1:34am
Whether it is a good deal or not, I think it is a great achievement for you that the broker is doing this change in your account. He no longer has the balls to trade against you because he is not sure that you will lose.
  • #18
  • Aug 26, 2008 2:43am Aug 26, 2008 2:43am
Quoting Voldemort
I beleive that the reason for the proposed change would be that the broker does not want to hold the risk on any of your trades because you are probably swinging a pretty big line (comparitively) but still wants to collect a little peice on the commission or markup that they are charging you by passing your trades directly to the bank (hence the better pricing)

That is the idea behind an STP model(collect a small premium but take zero risk) and in your case it would make sense because im assuming that you didnt grow your account that size by logging losing trades

Long story short if someone on the dealing desk screws up it will cost them a lot of money and wouldnt be worth the risk.
I think Voldemort you are right. I will see what happens.
So far i do not trade in the absolute end or start of the session, but it's a little like blind flying to see your open positions move and cannot intervene or take profits. Even better conditions as mentioned by the rep you will get when your account grows to EURO ~ 500000.
Than you will have the same spread as the clearing bank and pay commissions to the broker. But this is a long way so far.
But one thing i can confirm: When your account grows and you reached a decent level, people become very polite and fast in solving your issues!!
  • #19
  • Aug 26, 2008 4:47am Aug 26, 2008 4:47am
Quoting fxtrader42
I can guarantee you that you arent trading with Deutsche bank, in fact if you want I will bring up my live pricing from DB and you can tell me what you are seeing to compare.
True, their prices may come from more sources than just DB, but saying the trades are cleared through DB may mean they are taking advantage of the extra liquidity that DB can provide. I'm surprised they mentioned that though as I would have thought their agreement would forbid them or at least limit them from talking about this arrangement.
  • #20
  • Aug 26, 2008 8:58am Aug 26, 2008 8:58am
Quoting oakmonster
True, their prices may come from more sources than just DB, but saying the trades are cleared through DB may mean they are taking advantage of the extra liquidity that DB can provide. I'm surprised they mentioned that though as I would have thought their agreement would forbid them or at least limit them from talking about this arrangement.
Why do you think DB would care if Alpari told their customers that they were getting liquidity from DB? They might be getting liquidity from others besides DB, in fact I find it hard to believe that they wouldn't. However, it is impossible to send trades directly to DB with a markup, the trades first have to go to Alpari and then they can re-route to DB. It would sound more likely if they said we are going to charge you a fee and all trades will go to DB or whoever. The fact is, Alpari fooled this guy to think he is trading with DB and everyone else in the room bought it too. It would have been better for them to be honest and say that because of your account size and volume we are going to give you a better deal.
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