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My starting theory

  • #1
  • First Post: Feb 13, 2009 8:29am Feb 13, 2009 8:29am
Hello All,
I have 8 months demo experience. Still feel myself a total dummy(maybe forex is not girls' business???) but I'd like to try live account. I have read a LOT reviews about different brokers(and now think that there are no definitely desired broker for my sum of account) So there is theory that new company try to work better and harder(and in my life this theory helps me).I selected 3 relatively new brokers:
broco.com(good site, spreads 2+)
almaforex.com(fixed 1 pip spread)
investtechfx.com(spreads 1+, created on the bank's base)

I'll appreciate all your comments
Thanks
Alexa
  • #2
  • Feb 13, 2009 8:44am Feb 13, 2009 8:44am
Hi Alexa!

I have recently opened a similar thread:

http://www.forexfactory.com/showthread.php?t=152373

hope it can be a chance to compare, select and choose a few good brokers, there seem to be so many around and so many discordant views....

I was suggested to have a look at this site containing subejctive but useful comments and reviews about all the forex brokers, or at least most of them
  • #3
  • Feb 13, 2009 8:52am Feb 13, 2009 8:52am
Hello Ladyfx,

I'm just gonna go ahead and disagree about the theory that some new broker might be the better way to go. I will stick to my belief that a well known, well tested, and WELL capitalized broker would be the better general choice.
I like Oanda but there are many other well known brokers.
You may want to check out forexpeacearmy dot com. They do a lot of broker reviews. Best of luck to you!!
  • #4
  • Feb 13, 2009 12:41pm Feb 13, 2009 12:41pm
When it comes to Forex brokers I definitely think bigger is better. There's much less temptation to manipulate prices when they have sufficient liquidity to show you a 2 sided market.

Using your theory, a bookie would make an excellent forex broker.
  • #5
  • Feb 13, 2009 4:06pm Feb 13, 2009 4:06pm
Fxdd is the best oanda comes in the second place .
Winners never quit and quitters never win. Vince Lombardi
  • #6
  • Feb 13, 2009 4:22pm Feb 13, 2009 4:22pm
new brokers work harder

they are required by law to make as much profit as legally possible

how do they make profit?

if you think it is spread/commission/swap manipulation, you are only partially right. they win when you lose.

a company like fxsol makes spreads larger to compensate for people beating the house.

just saying, a "best broker" can't be determined in a 5 minute post. you almost have to visit each operation and know each companies capitlization and business model.

that being said, christiano says FXDD is best. but if you do a little looking around, you'll find an FXDD hate thread. So what's the right answer?

Quoting Ladyfx
Hello All,
I have 8 months demo experience. Still feel myself a total dummy(maybe forex is not girls' business???) but I'd like to try live account. I have read a LOT reviews about different brokers(and now think that there are no definitely desired broker for my sum of account) So there is theory that new company try to work better and harder(and in my life this theory helps me).I selected 3 relatively new brokers:
broco.com(good site, spreads 2+)
almaforex.com(fixed 1 pip spread)
investtechfx.com(spreads...
  • #7
  • Feb 13, 2009 4:36pm Feb 13, 2009 4:36pm
Quoting Ladyfx
Hello All,
I have 8 months demo experience. Still feel myself a total dummy(maybe forex is not girls' business???) but I'd like to try live account. I have read a LOT reviews about different brokers(and now think that there are no definitely desired broker for my sum of account) So there is theory that new company try to work better and harder(and in my life this theory helps me).I selected 3 relatively new brokers:
broco.com(good site, spreads 2+)
almaforex.com(fixed 1 pip spread)
investtechfx.com(spreads...
One thing you cannot know from looking at broker websites, others' comments or trading demo, is what live trade execution is like. And in a lot of ways, execution is what it's all about.

For example, MIG Investments is an MT4 broker offering a lot of great features and low spreads. Only problem is, their execution of trades is absolutely horrible. You click buy or sell, and the orders hang there forever. But there is no way to possibly know this first hand without trading a live account; they're certainly not going to tell you they have slow execution on their website. I had a live account there, and closed it in about 2 weeks.

If you want an MT4 broker, I would recommend FXDD. I know you'll be able to find plenty of people that don't like them, but I've had an account there since October 2008, and have not had any problems. I've also found their execution to be superior to IBFX, FXPRO, and of course MIG. I have had live accounts at all of them.

If you want an ECN broker, it's hard to beat MB Trading. You pay a commission, but get the best spreads, and an honest company you don't have to worry about trying to screw you. I have had a live account there too.

Hope that helps and best wishes to you
  • #8
  • Feb 13, 2009 5:16pm Feb 13, 2009 5:16pm
depends what kind of trader you are. execution is only important for scalpers and news traders. for everyone else execution is pretty much a non-issue.
  • #9
  • Feb 13, 2009 6:13pm Feb 13, 2009 6:13pm
Quoting hyperbling
depends what kind of trader you are. execution is only important for scalpers and news traders. for everyone else execution is pretty much a non-issue.
Now here's the world's best advice ... for going broke!

Even when you've have the holy grail of swing trading, if you don't execute it as flawlessly as you can, do you think it will perform as good as it should?

And since, for many of us, the holy grail of trading doesn't even exist, don't you think execution becomes even more important, irrelevant whether you're a scalper or swinger?
  • #10
  • Feb 13, 2009 6:21pm Feb 13, 2009 6:21pm
Quoting Zen
Now here's the world's best advice ... for going broke!

Even when you've have the holy grail of swing trading, if you don't execute it as flawlessly as you can, do you think it will perform as good as it should?

And since, for many of us, the holy grail of trading doesn't even exist, don't you think execution becomes even more important, irrelevant whether you're a scalper or swinger?
the bigger the stop loss and take profit targets, the more irrelevant execution speed is.

if your stop loss is 100 pips and take profit is 400 pips, do you really care if the order gets filled in 1 second or in 20 seconds?
  • #11
  • Edited 8:06pm Feb 13, 2009 7:51pm | Edited 8:06pm
Quoting hyperbling
the bigger the stop loss and take profit targets, the more irrelevant execution speed is.

if your stop loss is 100 pips and take profit is 400 pips, do you really care if the order gets filled in 1 second or in 20 seconds?
Execution a "non-issue"? Are you serious? Yah, your comments don't make any sense to either.

To clarify, the execution problems I had with MIG cost me money plain and simple. It didn't have anything to do with the "type" of trading I was doing. I merely tried to exit a position at the price of my choosing, and with over a minute delay in execution, the price went against me 20 pips. Not news, not scalping; just trying to exit a plain old order. So, execution doesn't matter you say?? Apparently 20 pips either way is of no consequence to you, and if so, congratulations; you must be doing quite well in your trading.

My comment was for the starter of the thread, and I think was relevant. If it doesn't apply to you, and/or you don't mind one of your 400 pip trades turning into a 380 pip trade due to poor execution, then don't worry about it...

Your choice, but as for me, I'll use a different broker and bank the additional 20 pips
  • #12
  • Feb 13, 2009 9:51pm Feb 13, 2009 9:51pm
Quoting TC East
Execution a "non-issue"? Are you serious? Yah, your comments don't make any sense to either.

To clarify, the execution problems I had with MIG cost me money plain and simple. It didn't have anything to do with the "type" of trading I was doing. I merely tried to exit a position at the price of my choosing, and with over a minute delay in execution, the price went against me 20 pips. Not news, not scalping; just trying to exit a plain old order. So, execution doesn't matter you say?? Apparently 20 pips either way is of no consequence to you,...
damn...1 minute? that's not bad execution...that's a scam!
  • #13
  • Feb 14, 2009 4:51am Feb 14, 2009 4:51am
Quoting hyperbling
damn...1 minute? that's not bad execution...that's a scam!
Haha, yah you could say that, although they are known as a legitimate broker, and I had no problems getting my money back. But re. the execution, unfortunately, it's very difficult to know about it until you actually trade live with them...
  • #14
  • Feb 14, 2009 9:16am Feb 14, 2009 9:16am
Quoting TC East
the execution problems I had with MIG cost me money plain and simple.
Now this is EXPERIENCE talking...and you should listen well, hyperbling. Cos if you think his is an isolated event, you should get out more often.

Stop Loss 100 and Take Profit 400? Try that with GBPUSD during normal time. See how many more times you got your SL hit instead of your TP. And with your sloppy execution, not to mention your broker's, those 100 can easily stretch to 120 or even worse.

Like I said, yours is the world's best advice for going broke.
  • #15
  • Feb 15, 2009 1:56am Feb 15, 2009 1:56am
Quoting Zen
Now this is EXPERIENCE talking...and you should listen well, hyperbling. Cos if you think his is an isolated event, you should get out more often.

Stop Loss 100 and Take Profit 400? Try that with GBPUSD during normal time. See how many more times you got your SL hit instead of your TP. And with your sloppy execution, not to mention your broker's, those 100 can easily stretch to 120 or even worse.

Like I said, yours is the world's best advice for going broke.
dude why are you getting all worked up over this?
  • #16
  • Feb 16, 2009 4:47am Feb 16, 2009 4:47am
Because this forum is for helping hands. Despite whatever good intention you had behind your advice, what you gave to newbies is a poisonous dagger inside a deliciously smell lamb chop. God knows there are already enough sharks infesting these forex waters. So please, get some more experience before you put one (or more) of your fellow newbie into their hungry mouths.
  • #17
  • Feb 16, 2009 5:27am Feb 16, 2009 5:27am
Hey folks, I see both sides of this. Sure, a few pip slip doesn't seem as bad for a swing trade as it would for a scalp. A scalper gets slippage and it eats 10% of the trade. But, any delays and slippage is annoying at best. It is hard to maintain a clinical calm when you're getting constant requotes. And those requotes are more aggressive when you're trying to enter a "good" trade.

I've got MT4 demo's which get requoted several times in a row. There is no way I would open a live account with that.

When I click "submit" with my live Oanda account... that trade executes and shows up on my screen way faster than I can blink. Any kind of delay would be annoying at best.

New traders get lured by the hype and false promises of a new broker. Tight spreads, free money, blah, blah.

When choosing a broker, do some objective research, and listen to the guys that have traded with a broker for a long time. There's always going to be personal preference involved, but well established brokers are the way to go.
If you open with a fly-by-night broker, don't come crying when they rob you. Sry, but tough love goes well to those who listen.
  • #18
  • Feb 16, 2009 11:24am Feb 16, 2009 11:24am
Quoting Zen
Because this forum is for helping hands. Despite whatever good intention you had behind your advice, what you gave to newbies is a poisonous dagger inside a deliciously smell lamb chop. God knows there are already enough sharks infesting these forex waters. So please, get some more experience before you put one (or more) of your fellow newbie into their hungry mouths.
i'd say that my advice is dangerous to most newbies because they don't understand the context of what i'm saying. most people are action junkies and trade the 5m, 15m, 1hr etc. obviously, any difference in execution speed between brokers is fatal to any strategies that use those time frames. what if your strategy involves trading daily candles? and you put in stop/limit orders when price breaks the high/low of the previous candle? i would immediately withdrawal all money from any broker who can't process these trades.

i guess what i'm trying to say is, there are lots of different ways to trade forex, and thus, there are many different ways to choose brokers. slippage/requotes are completely unacceptable to scalpers who target profits of 5-10 pips. in comparison, i don't think it means anything for someone who uses daily strategies, or even weekly strategies.

for the record, i trade 15min, and execution speed was one of the main criteria i used for choosing a broker.
  • #19
  • Feb 16, 2009 1:20pm Feb 16, 2009 1:20pm
Quoting hyperbling
i'd say that my advice is dangerous to most newbies because they don't understand the context of what i'm saying.
Exactly!! And if I may remind you about this thread starter, whom claim to be a newbie with only 8 months demo experience, doesn't it make your advice dangerous because of the very reason you said yourself?
  • #20
  • Feb 16, 2009 1:25pm Feb 16, 2009 1:25pm
Quoting Zen
Exactly!! And if I may remind you about this thread starter, whom claim to be a newbie with only 8 months demo experience, doesn't it make your advice dangerous because of the very reason you said yourself?
lol, well if someone blindly listens to all advice i'd say they're doomed to fail. check the facts/reasons before you put real money on the line.
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