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Which MM or ECN brokers can beat Oanda Spread?

  • #21
  • Mar 23, 2010 1:32pm Mar 23, 2010 1:32pm
Quoting cosgrove
Can you give an example of the ECN spread when Oanda goes to 10 and 30?
Not directly, no. Your best bet is to monitor the platforms at news time. If you look at Oanda's historical spreads, you'll see that the spikes go off the charts. As shrike pointed out, it is possible to manage a position around these spikes since they're relatively known in advance. The other issue is unplanned market-impacting news releases, though that's a bit more rare.

Quote
Also, what happens if you're trading on Oanda, you had a 20p stop, your position was already against you 19p, and spreads went to 30? Would your order be closed at -49p loss?
Well 30 wide = +/- 15 pips from the bid/ask midpoint. So if your position is -19p, and the spread jumps from 1 to 30, hypothetically your trade will be executed somewhere around -33p.

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Can you go into more detail about your currenex experience? I'm more worried about orders being triggered/filled than a few pips slippage. If you have a TP/SL order at a price level and the respective bid/ask touches that level, are you always filled, sometimes slipped? sometimes filled, always slipped? or what?
Though the question wasn't addressed to me, I've traded with Currenex before and it operates precisely the same as the ECNs I'm on now. 9 times out of 10, you'll be executed at your exact TP/SL price the moment it touches. Unless you're trading larger liquidity than what the LPs are offering, and/or trading into a news-driven or rapid market, you shouldn't have any slippage.
  • #22
  • Edited 4:18am Mar 24, 2010 2:43am | Edited 4:18am
Few big /good players trade with MM, because of the interest conflict. Never rely on the justice of MM brokers.
MM platform is only suitable for beginners.
If you are a scalper or high frequency traders, stay far away from MM !!
As for the spread compare, check http://www.fxintel.com/live.
You can see ATC currenex is very competitive. IB is almost the same with ATC.
  • #23
  • Mar 24, 2010 3:35am Mar 24, 2010 3:35am
HI Guys.
I dont care how the marketmaker manages risk as long as they give me the best execution and tightest spreads.

Stop all this speculation about broker conflict of interest....just for your interest i know of a trader who places far larger trades than any of us ever will and has been profitable for over a decade......taking many hundreds of thousands of dollars out of the market every year.
Know what....he trades with a market maker broker who has rewarded his high volume with tigter spreads than the regular offering......tighter than spreads offered to all the 95% of loosers !
go figure

The whole ECN thing has become a bit of a marketing angle with brokers jumping on the bandwagon to gain an edge in attracting customers........!

Just look at the fxcm Micro debacle....they are now changing their market made offering over to no dealing desk (at the cost of wider spreads) and all their traders are up in arms wanting them to stay as a dealing desk...... traders who are very happy with the execution and tight spreads !
  • #24
  • Mar 24, 2010 4:03am Mar 24, 2010 4:03am
I think the Oanda news time pump and dump spreads are bad enough to make their general spead +3 pips more. I have seen spreads of up to 80 pips on gbp/usd during news time.

NO other broker i have seen has such bad news time spreads.

Congrats on the advertisement though.
  • #25
  • Mar 24, 2010 4:06am Mar 24, 2010 4:06am
Yeah the news pump is a bit of a pain, you have to be nimble if the price is close to stops/limits

No broker is perfect but i hit my targets and avoid being stopped before the other traders i trade alongside..........thats gotta count for something eh !

how about 60 pips slippage on Currenex from time to time.....how would that effect average spread/commish ?
  • #26
  • Mar 24, 2010 9:57am Mar 24, 2010 9:57am
Quoting ForexQuant
Nowaday the average Oanda spread is much lower than a year ago. Is this happen to all brokers or just Oanda only?

I just wonder nowaday which brokers can beat Oanda in term of transaction cost? Do cost of transaction for ECN brokers still lower than Oanda?

The attached is the Oanda spread one hour after London open.
I think you guys never heard about FXOpen if you think Oanda can give you the best service in ecn.
  • #27
  • Edited 11:21am Mar 24, 2010 10:43am | Edited 11:21am
Quoting Rise
how about 60 pips slippage on Currenex from time to time.....how would that effect average spread/commish ?
can you further define "time to time"?
Hindsight is 20/20
  • #28
  • Mar 24, 2010 10:49am Mar 24, 2010 10:49am
"can you further define "time to time"? "

Yeah...whenever you have an open position and news shoots the price through your stoploss...... or when stoploss is hit during asian session sometimes !

and regarding FXopen....sure....i love to send my money to a broker from Mauritius
  • #29
  • Mar 24, 2010 11:22am Mar 24, 2010 11:22am
Quoting Rise
"can you further define "time to time"? "

Yeah...whenever you have an open position and news shoots the price through your stoploss...... or when stoploss is hit during asian session sometimes !
thanks!

Quoting Rise
and regarding FXopen....sure....i love to send my money to a broker from Mauritius
LOL you beat me to it.
Hindsight is 20/20
  • #30
  • Mar 24, 2010 2:40pm Mar 24, 2010 2:40pm
Cant you guys just stop promoting fxopen? I got tons of scam warning when i search fxopen in most forums.

As you know there are no perfect brokers out there. My intention to start this thread is to compare the transaction cost among the brokers.

I believe those who stay with oanda already know about their pros & cons. I do understand that their got connection problem and wide spread during news period but i accept it as part of the business deal. I do hate connection problem but it does not happen everyday. Wide spread during news time is also not a main concern to me because it usually last for a few minutes only.

I just wanted to emphasize again that the purpose of this thread is to discuss the transaction cost among brokers. So pls be a mature trader and dont keep attack the weakness part of the brokers!

Thank you!
  • #31
  • Mar 30, 2010 8:35am Mar 30, 2010 8:35am
From time to time Oanda does 0,8 on USD/JPY and on EUR/GBP.

In my opinion as the biggest broker they don't seem to have sufficient motivation to lower their spreads. Unless people start migrating to other brokers just because of the spreads.

Knowing their business model they could probably do 0,7 on EUR/USD without assuming any risk at all.
  • #32
  • Mar 31, 2010 1:27am Mar 31, 2010 1:27am
Oanda has the best spreads out there...soooooo whataya think ?
  • #33
  • Mar 31, 2010 11:04am Mar 31, 2010 11:04am
Quoting Rise
Oanda has the best spreads out there...soooooo whataya think ?
The best spreads are on ECN. And some brokers actually have lower spreds than Oanda. Like ATC.
  • #34
  • Apr 1, 2010 7:53am Apr 1, 2010 7:53am
ATC is just an IB for FXCM UK (and "adding future liquidity providers in the future"). Does that change your opinion of them? Not trying to be funny, just asking.
Hindsight is 20/20
  • #35
  • Apr 1, 2010 2:18pm Apr 1, 2010 2:18pm
Quoting Tradertuga
The best spreads are on ECN. And some brokers actually have lower spreds than Oanda. Like ATC.
What if the commission included?
  • #36
  • Apr 2, 2010 5:32am Apr 2, 2010 5:32am
^^ I think that after a 5.000~6.000 USD order a ECN is worth it.

I use Oanda for 3 years now but I'm going to open a ECN account soon.

I would like to know more about rollover comparasion.
  • #37
  • Apr 2, 2010 2:00pm Apr 2, 2010 2:00pm
MB Trading is near same cost... their spread is 0.9 pips most of the time as well, perhaps sometimes a fraction less. They are also an ECN, you can have your order represented on the bid/offer among their pool of traders. You also have a level 2 depth of market, but it moves very fast in forex. Unfortunately, they also charge a commission, recently lowered to $2.95 per $100,000 USD.

Essentially, that raises the costs to 0.9 +.295 about 1.2 pip effective spread, a touch more than Oanda, BUT they aren't trading against you.
They've recently added MT4 platform, before that it was a bit "clunky" to scalp on their MB Navigator software. They are currently my very close number 2 choice to trade with, I have accounts at both.

Oanda's one touch trade entry with easy changes to Profit targets and Stop loss orders is still faster for scalping.
  • #38
  • Apr 2, 2010 3:00pm Apr 2, 2010 3:00pm
Quoting Intu

Essentially, that raises the costs to 0.9 +.295 about 1.2 pip effective spread, a touch more than Oanda, BUT they aren't trading against you.

Brother,

Let me correct you :

2.95 * 2(in and out) * 1.35(present value of EUR/USD) = 0.79 pips commission + 0.9 = 1.69 pips effective spread .....almost DOUBLE of Oanda..
  • #39
  • Edited 3:31pm Apr 2, 2010 3:10pm | Edited 3:31pm
You are right, thank you...I am so used to thinking in units (because of Oanda's trade size settings)


Deleted Post
Cocoflanel's math is correct.
  • #40
  • Apr 2, 2010 3:21pm Apr 2, 2010 3:21pm
No, you shouldn't calculate the spread 2 times...I will explain : suppose the market is at

1.3500 - 1.3501


You buy > long at 1.3501 now you exit immediately without the market moving > sell at 1.3500 loss = 1 pip , not 2 pips.

The market has to move to 1.3501 - 1.3502 for you to break-even when you sell > the cost to overcome is the spread of 1 pip
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