What are the spreads for the majors on a very large position?

Hi all, I've been using spreadsheet to determine a 1% return every week and compounded every week, on paper I'll make good enough return to feed myself and my family and by the same time add to my trading account balance.

Now, please don't talk about the 1% return every week but rather at the compounding.

I've realized that if I had a 1% risk on each trade I make, then when my account size reached $1 mio, and if the stop size is 50 pips, then I'll be trading $200 per pip which is 20 Standard Lots worth 2,000,000 EUR on every trade I open then.

and when the account size reached $2 mio, the position size will then double that.

My question is, If I'm ever disciplined, consistent, and lucky enough to make that amount of account balance, what will be my expected spread for the pairs I am trading? because I've heard that it's quite hard for a retail broker to provide those amounts of leverage loan with small enough spreads (lets just say 2-3 pips spread on EURUSD)

Thank You.

IF you are lucky enough to build up to the large accounts, you should think about using brokers that suit your needs for each account size. Under $20k should be alright with a fixed spread market maker. Above that, you should be looking into ECN brokers with decent commissions on round turn trades. As you progress you will need liquidity to be able to handle your account so your choice of ECN broker is very important. By the way, ECN spreads are usually 0.5-1.5 pips during normal conditions on eur/usd. You can even get negative spread if you are lucky.

Thanks for the reply, anyone else?

You can have 0.5 - 1 during busy hours include commission provided that your trade size is fairly large. Eurusd is usually low spread anyway with small amount related to other pair.

So the answer to large accounts are ECNs.

Now comes the question on when is the right position size one has to have to start thinking of moving to ECNs.

5-10 Standard lots? 20?

with my account size and MM style right now I can open a maximum of 200.000 units , please lets not talk about trading styles and profit consistency because it is beyond the scope of this topic...

Thank You for your attention.

Marcel.

There are a few threads about broker's liquidity in FF. Try the search function.
This is the most recent one : http://www.forexfactory.com/showthre...93#post2587893

The term "lots" differs among brokers, for some brokers 1 lot = 10k other brokers 1 lot = 100k, etc.

When you are going to move to large brokers you need to know what are the minimum contract size and see if they can fit to your MM plan.

"FXCM Trading Station allows for order sizes up to 50 million per trade. Traders have the ability to trade incremental sizes (multiple orders of 50 million for the same pair)."

i trade 10 lots ( $1 million) with no problem

While you could trade in 50 million per click, I would recommend using the active trader platform if you start to trade larger size. That way you can see the liquidity available.

Thanks, you all have been a great help, now I know what to expect, at least for now.