Can I make money on difference? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

What chart do you use? (M1, M5, M15) Does it make a difference? 55 replies

If you make money, does Oanda make money? 35 replies

do faster computers make a difference with slippage? 32 replies

Spreads make a difference 3 replies

Bulls make money, Bears make money. And Pigs get slaughtered. 12 replies

Attachments: Can I make money on difference?
Exit Attachments

Can I make money on difference?

  • #1
  • First Post: Aug 26, 2008 11:20am Aug 26, 2008 11:20am
Hello All!

I am currently using two trading platforms. The first is the MetaTrader and other is the ExpressFX. See my screen below:

On MT platform there is a 3 pip spread charge on USDJPY and on expressfx the charge is 0 in spreads and $0.6/1000 units of currency in commissions which applies to profitable trades only. Someone mentioned that there is no difference but if you look at the screen you will see that this is not correct. Let me know what you think about this.
Attached Image (click to enlarge)
Click to Enlarge Name: mtexpr.JPG Size: 240 KB
  • #2
  • Aug 26, 2008 12:34pm Aug 26, 2008 12:34pm
I think they call it arbitrage. You can make money but as soon as the brokers find out, they'll shut you down, so it's pointless.
The market reveals who we really are...
  • #3
  • Aug 26, 2008 1:04pm Aug 26, 2008 1:04pm
Quoting shadowninja
I think they call it arbitrage. You can make money but as soon as the brokers find out, they'll shut you down, so it's pointless.

Sorry, I did not get it. Expressfx has 0 spread and I can use it! It's not gonna hurt any of these brokers!
  • #4
  • Aug 26, 2008 1:31pm Aug 26, 2008 1:31pm
There are a few issues that need to be pointed out here, first off each broker will have differences in their pricing on their data feed so you cannot rely on this unless you are seeing one move before the other etc. Secondly I highly recommend against the use of ExpressFx they are a joke the last time I looked at them, if you were short they had a smily face on the bottom right of the chart and a frown face at the top right of the chart????? You have to be kidding me!! lol Also if you really want to use ExpressFx you better read their terms very carefully as .6 commission is VERY steep, I don't remember if the .6 per 1000 is roundturn or not but either way you are looking between 6-12 pips in commission! They also have requirements for your stoploss and profit targets to be a minimum of 12 pips away (if I remember correctly, it was something absurd). Anyway, the point is read the fine detail in their terms and the commissions are exuberant!
  • #5
  • Aug 26, 2008 1:48pm Aug 26, 2008 1:48pm
Quoting fxRichard
There are a few issues that need to be pointed out here, first off each broker will have differences in their pricing on their data feed so you cannot rely on this unless you are seeing one move before the other etc. Secondly I highly recommend against the use of ExpressFx they are a joke the last time I looked at them, if you were short they had a smily face on the bottom right of the chart and a frown face at the top right of the chart????? You have to be kidding me!! lol Also if you really want to use ExpressFx you better read their terms very carefully as .6 commission is VERY steep, I don't remember if the .6 per 1000 is roundturn or not but either way you are looking between 6-12 pips in commission! They also have requirements for your stoploss and profit targets to be a minimum of 12 pips away (if I remember correctly, it was something absurd). Anyway, the point is read the fine detail in their terms and the commissions are exuberant!
lol..very creative of them. I know for many members of this forum they may appear as a joke broker, but I think they have their own special place in the industry. They provide an easy simplified way to trade at the entry level for traders new to forex.
  • #6
  • Aug 26, 2008 2:19pm Aug 26, 2008 2:19pm
Quoting good
lol..very creative of them. I know for many members of this forum they may appear as a joke broker, but I think they have their own special place in the industry. They provide an easy simplified way to trade at the entry level for traders new to forex.
The problem is trading is not necessarily so easy, what's funny is to make a trade you have to go through like a 10 page wizard lol....anyway
  • #7
  • Aug 26, 2008 2:31pm Aug 26, 2008 2:31pm
Quoting fxRichard
There are a few issues that need to be pointed out here, first off each broker will have differences in their pricing on their data feed so you cannot rely on this unless you are seeing one move before the other etc. Secondly I highly recommend against the use of ExpressFx they are a joke the last time I looked at them, if you were short they had a smily face on the bottom right of the chart and a frown face at the top right of the chart????? You have to be kidding me!! lol Also if you really want to use ExpressFx you better read their terms very carefully as .6 commission is VERY steep, I don't remember if the .6 per 1000 is roundturn or not but either way you are looking between 6-12 pips in commission! They also have requirements for your stoploss and profit targets to be a minimum of 12 pips away (if I remember correctly, it was something absurd). Anyway, the point is read the fine detail in their terms and the commissions are exuberant!
Quoting fxRichard
The problem is trading is not necessarily so easy, what's funny is to make a trade you have to go through like a 10 page wizard lol....anyway
I got you!
They charge $0.6 per 1000 lot (round turn) and they do an instant commission refund if you close your trade in red! But still, I agree that $0.6 sounds too much.
So, if I do an arbitrage and close red positions in Express but green on other broker I really make money! Anyway, this zero spread feature is great.
  • #8
  • Aug 26, 2008 2:40pm Aug 26, 2008 2:40pm
Look at it this way, you don't have a 0 spread, technically you have a 12 pip spread but only on profitable trades.
  • #9
  • Aug 26, 2008 2:49pm Aug 26, 2008 2:49pm
Quoting fxRichard
Look at it this way, you don't have a 0 spread, technically you have a 12 pip spread but only on profitable trades.
Yeap, but not 12 -pip. Only 6pip.
Richard look, let's assume I open short position on Express and long on Metatrader with positive spread. Later on I close my position on Expressfx with a loss and with a profit on MT. Theoretically I am making money !
  • #10
  • Aug 26, 2008 2:51pm Aug 26, 2008 2:51pm
Actually it is 6 pip round trip spread/commission. I asked the customer care as there was another discussion on this topic in a different thread.
  • #11
  • Aug 26, 2008 2:51pm Aug 26, 2008 2:51pm
Wouldn't it be easier to just learn to trade?
  • #12
  • Aug 26, 2008 2:56pm Aug 26, 2008 2:56pm
Quoting traderjai_inhi
Wouldn't it be easier to just learn to trade?
You are absolutely right! if you can trade market you make money anyway and you do not care how big spreads are.
But here I'm just trying to guess if I can make on the differences of terms on other brokers.
  • #13
  • Aug 26, 2008 3:08pm Aug 26, 2008 3:08pm
Your right it's .6 roundturn, I checked....my point is read the fine print so you don't miss things like this...

"The minimum stop-loss and take-profit limits are is $1.20 for every 1000 units of the base currency. For example, if your position size is $3000, the minimum limit for stop-loss and take-profit is 3 x $1.20 = $3.60. The Company retains the right to reject any trade with limit orders that violate this rule.

When you are changing your take-profit order on an open position that is currently making a profit, the new take-profit level should be set at not less than $1.20 for every 1000 units of the base currency from the current P/L.

When you are changing your stop-loss order on an open position that is currently making a loss, the new stop-loss level should be set at not less than $1.20 for every 1000 units of the base currency from the current P/L."
  • #14
  • Aug 26, 2008 3:13pm Aug 26, 2008 3:13pm
Quoting lavatrader
Yeap, but not 12 -pip. Only 6pip.
Richard look, let's assume I open short position on Express and long on Metatrader with positive spread. Later on I close my position on Expressfx with a loss and with a profit on MT. Theoretically I am making money !
How would you do that? If you take profit on Metatrader, you take loss on express. You don't pay spread or commission, but loss is still there. If price moves 5 pips in your favor in metatrader, there will be 5 pip loss on express. Surely expressfx guys would have thought about this in detail before they launched their platform, don't you think?
  • #15
  • Aug 26, 2008 3:16pm Aug 26, 2008 3:16pm
Quoting fxRichard
Your right it's .6 roundturn, I checked....my point is read the fine print so you don't miss things like this...

"The minimum stop-loss and take-profit limits are is $1.20 for every 1000 units of the base currency. For example, if your position size is $3000, the minimum limit for stop-loss and take-profit is 3 x $1.20 = $3.60. The Company retains the right to reject any trade with limit orders that violate this rule.

When you are changing your take-profit order on an open position that is currently making a profit, the new take-profit level should be set at not less than $1.20 for every 1000 units of the base currency from the current P/L.

When you are changing your stop-loss order on an open position that is currently making a loss, the new stop-loss level should be set at not less than $1.20 for every 1000 units of the base currency from the current P/L."
good point too! Minimum loss would have to be 12 pips...no scalping!
  • #16
  • Aug 26, 2008 3:26pm Aug 26, 2008 3:26pm
Quoting good
How would you do that? If you take profit on Metatrader, you take loss on express. You don't pay spread or commission, but loss is still there. If price moves 5 pips in your favor in metatrader, there will be 5 pip loss on express. Surely expressfx guys would have thought about this in detail before they launched their platform, don't you think?
Look at my screen:

I bought 100,000 EURUSD on MT at 1.4649 and sold at 1.4649 on ExpressFX. NO Spread. Now, I have to close my position on express with a loss (1 pip) and that's going to be the whole loss for that trade and close my position on MT at 1.4651. ONE pip guaranteed

Sounds like a plan!
Attached Image (click to enlarge)
Click to Enlarge Name: 1.JPG Size: 90 KB
  • #17
  • Aug 26, 2008 3:29pm Aug 26, 2008 3:29pm
Sorry guys! I'll be in a little bit.
  • #18
  • Aug 26, 2008 4:03pm Aug 26, 2008 4:03pm
Quoting lavatrader
Look at my screen:

I bought 100,000 EURUSD on MT at 1.4649 and sold at 1.4649 on ExpressFX. NO Spread. Now, I have to close my position on express with a loss (1 pip) and that's going to be the whole loss for that trade and close my position on MT at 1.4651. ONE pip guaranteed

Sounds like a plan!
Although I am surprised to see the bid price on express same as ask price on metatrader, but still it does not make it possible to make any guaranteed pip.

If you buy and sell at that price on two brokers at same time and then say price moves 1 pip, it would be 1 pip loss on express and 1 pip profit on metatrader (actually still a loss on metatrader as well due to spread). If after closing express for 1 pip loss, you are waiting for metatrader to become 2 pips in profit, then thats just speculating or normal trading, no guarantees there! Nevertheless, express does not allow 1 pip profit so lets just let it go.

Edit: note that express don't have bid or ask price....just one price....lol
  • #19
  • Aug 26, 2008 4:07pm Aug 26, 2008 4:07pm
Quoting lavatrader

Sounds like a plan!
Then start using it!
  • #20
  • Last Post: Aug 26, 2008 9:28pm Aug 26, 2008 9:28pm
Quoting good
Although I am surprised to see the bid price on express same as ask price on metatrader, but still it does not make it possible to make any guaranteed pip.

If you buy and sell at that price on two brokers at same time and then say price moves 1 pip, it would be 1 pip loss on express and 1 pip profit on metatrader (actually still a loss on metatrader as well due to spread). If after closing express for 1 pip loss, you are waiting for metatrader to become 2 pips in profit, then thats just speculating or normal trading, no guarantees there! Nevertheless, express does not allow 1 pip profit so lets just let it go.

Edit: note that express don't have bid or ask price....just one price....lol

Hmm, I just came up with the same idea. Thanks a lot pal, it is always pleasure to talk with expirienced traders
0 traders viewing now