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forex spreads are a joke....read this

  • #1
  • First Post: Jan 19, 2009 1:31am Jan 19, 2009 1:31am
I was looking for a broker with low forex spreads. At first i thought www.MBtrading.com forex spreads were pretty good since they claim that their spread is as low as 0.

Fact is, 0 is hard to hit with a market order. I dont have a live account but from my experience with a demo the only good consistant LOW SPREAD fill is eur/usd. The spread on GbP/usd is 4 for the most part....IOW the 0 spread is a bunch of BS.

PLUS on top of that MB trading charges a commision of $15 per 100,000. Cost per trade on Gbp/usd...about $150.

MY solution to ripoff forex brokers....

GET A FUTURES ACCOUNT! (if you want low cost and trade only majors)

www.mirusfutures.com is a good place to start. I dont have a real account with them yet but i can trade GBP futures (same as Gbp/usd) for
$4 commission per 100,000.

puke


Edit: sorry please move to broker section.
  • #2
  • Jan 19, 2009 9:50am Jan 19, 2009 9:50am
Quoting pipmac
PLUS on top of that MB trading charges a commision of $15 per 100,000. Cost per trade on Gbp/usd...about $150.

MY solution to ripoff forex brokers....

GET A FUTURES ACCOUNT! (if you want low cost and trade only majors)

www.mirusfutures.com is a good place to start. I dont have a real account with them yet but i can trade GBP futures (same as Gbp/usd) for
$4 commission per 100,000.
Pound futures are worth 62.5K ($6.25 per pip) per contract not 100K. You can trade futures with MB too, by the way.

And how exactly do you get to $150 per trade?
  • #3
  • Jan 19, 2009 10:44am Jan 19, 2009 10:44am
Quoting shrike
Pound futures are worth 62.5K ($6.25 per pip) per contract not 100K. You can trade futures with MB too, by the way.

And how exactly do you get to $150 per trade?

My bad.

Gbp/usd

cost of trading 3 lots 300,000 at mb trading is almost always $150 plus commission of $15 per contract.

Gbp
Cost at mirusfutures. Is $4 (62.5K ($6.25 per pip)

Eur/usd
Cost at mirusfutures is $4 (120,500 ($12.50 per pip)

Plus you can trade the Yen and swiss franc for cheap. NOt to mention dow and oil and many others at a low cost. And the movement in those markets is about the same as forex. Don't get scammed by forex brokers. My 2 pips.

Something to think about. You dont need a forex broker. Especially if your scalping or making 1-20 trades a day.

REally, the only advantage of forex is that you can trade 24 hours a day.
Peace.
  • #4
  • Jan 19, 2009 10:57am Jan 19, 2009 10:57am
EuroFX contract is 125K ($12.5 per pip). But yes, the CME is a very good alternative if you don't need crosses like eur/jpy etc.

I still dont get your $150 - are you saying you get a 5 pip spread on a regular basis?
  • #5
  • Jan 19, 2009 11:01am Jan 19, 2009 11:01am
Quoting pipmac
My bad.

blalabablabala...

REally, the only advantage of forex is that you can trade 24 hours a day.
Peace.
You can trade currency futures almost 24 hours a day too on Globex.

You've got a point but not for any of the reasons you have mentioned. Like a lawyer who's argument that his client could not be guilty because he was off commiting another crime, the jury are likely to convict just out of spite anyway.

Regulation and security of funds would be my number 1 reasons for turning to currency futures. The FX markets offer perhaps slightly higher costs, but the barriers to entry to trade currency futures are higher, which may or may not be an issue depending on your financial situation and even geographic location.
  • #6
  • Jan 19, 2009 11:06am Jan 19, 2009 11:06am
Quoting shrike
EuroFX contract is 125K ($12.5 per pip). But yes, the CME is a very good alternative if you don't need crosses like eur/jpy etc.

I still dont get your $150 - are you saying you get a 5 pip spread on a regular basis?
On their demo yes. And it was during normal trading hours. I was using the mb demo and ninja trader. I called them up and the rep said it could be a ninja glitch. So i watched the quotes for GbP/usd on their platform. They bounce around to much to get a low spread fill consistantly. They go to 1 and 0 but only for milliseconds.

It's possible to get lucky once in awhile. But with futures you know what you get EVERYTIME. And its cheap.

good luck to all

Ps. Shrike---thanks for the corrections. I edited it before your post...anyway
  • #7
  • Last Post: Jan 19, 2009 11:18am Jan 19, 2009 11:18am
Quoting birdt
The FX markets offer perhaps slightly higher costs, but the barriers to entry to trade currency futures are higher.
True. Minimum requirements are a little higher. Margins are high depending on the broker. Some brokers offer intraday margins of $500 per contract. Not bad.
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