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Which MM or ECN brokers can beat Oanda Spread?

  • #101
  • Apr 17, 2010 3:54am Apr 17, 2010 3:54am
For the most part of the week Oanda had a 1,4 spread on Eur/Jpy. Which is quite ok, and can beat (most of the time) for example the ATC brookers spread in this pair.

On Eur/Usd the spread stayed 0,9 except on the news and on a period of high volatility that made the spread go to 1,2. The same happened in Eur/Gbp and Usd/Jpy. I start to find this very recurrent in Oanda, they have a easy finger on periods of high volatility.

Note: 0,9 when the Euro is at 1,35 is not the same when it was at 1,5.
  • #102
  • Apr 17, 2010 11:33am Apr 17, 2010 11:33am
Quoting Tradertuga
On Eur/Usd the spread stayed 0,9 except on the news and on a period of high volatility that made the spread go to 1,2. The same happened in Eur/Gbp and Usd/Jpy. I start to find this very recurrent in Oanda, they have a easy finger on periods of high volatility.
My robot won't take a trade if the eur/usd spread is higher than 0,9 and I've had no problem taking trades this week.

Quoting Tradertuga
Note: 0,9 when the Euro is at 1,35 is not the same when it was at 1,5.
And it's even worse for the fixed spread brokers who still have a 3 pip spread on that pair...
  • #103
  • Apr 17, 2010 11:44am Apr 17, 2010 11:44am
Advanced Markets or www.amifx.com can beat Oanda in spreads...
  • #104
  • Apr 17, 2010 11:52am Apr 17, 2010 11:52am
Quoting LEXngton
Advanced Markets or www.amifx.com can beat Oanda in spreads...
1st red flag :
Quote
How tight can I expect to see spreads?...
Due to the fact Advanced Markets posts the best bid/offer that comes in from our multiple banks, there are times our spreads may be 0 or less(inverted). Although these times are not frequent, it does show our desire to show complete transparency and not interfere with what the real "Market" is. Other companies may use this method, but will put a minimum price on all pairs, not really posting to the clients the true benefits of what the best bid/offer can deliver.
2. They do charge commissions but the formula is complicated.
3. The 1% margin makes them look like a bucket shop.
4. A google search on a broker rating website told me that they have a 2 pip spread ( link ).
5. On forex army you can learn that they were fined $150,000 for defrauding forex investors, according to the NFA website. (The NFA ID number is the same as the one published on their website)

That's 5 red flags. And one is more than enough to know what you're dealing with.
  • #105
  • Edited 4:12am Apr 18, 2010 4:11am | Edited 4:12am
Quoting Intensity
1st red flag :...
You deserve your opinion. But I have a live account with them and I can assure you that eur/usd spread is not 2 pips, not even close. As for 100:1 leverage, many TRUE non dealing desk brokers use it, at least in USA. The commission formula is not complicated at all. And yes they were fined $150K for violations that occured 3 years ago but it was for misleading advertisement on their website and other record and bookeeping violations and that has been corrected. http://www.nfa.futures.org/basicnet/...px?seqnum=1475 They remain a member of NFA in good standing.

Bottom line is you won't find a better executing, TRUE non-dealing desk, NFA regulated broker. I've used many, many brokers and none have the speed of execution, both entry and exits, that these guys do. Also deposits and withdrawls are done within 1-2 days MAX.

Download their demo and see just what your missing. By the way, their live account execution is the same speed as their demo!
  • #106
  • Apr 18, 2010 4:19am Apr 18, 2010 4:19am
Quoting LEXngton
You deserve your opinion. But I have a live account with them and I can assure you that eur/usd spread is not 2 pips, not even close.
So what's your usual EURUSD spread like ?
  • #107
  • Apr 18, 2010 1:02pm Apr 18, 2010 1:02pm
Go to the NFA website and read the Advanced Markets record. Then click on Brocco (one of their principals) and click through all firms he was registered with and read the case documentations. Then do the same for Mr. Gooch (another AM principal).

Then decide if you still want to go with them.
  • #108
  • Edited 1:20am Apr 19, 2010 1:11am | Edited 1:20am
Quoting Intensity
So what's your usual EURUSD spread like ?
0.2 to 0.7 usual spread of eur/usd on my live account...

I really, really like them... Like I said earlier the $150K fine that the NFA gave them 3 years ago was not trader related. In other words they did'nt cheat anyone trading with them. Was all to do with NFA regulations and amifx not living up to them, such as misleading on website and failure to keep required net capital. However these were corrected immediately 3 years ago and they have remained in good standing with NFA since. I don't represent them at all, just letting you know how good their execution, spreads, and customer service are, and their excellent...

Also a major Korean Securities broker announced they were going to use Advance Markets for their 23,000 futures trading clients. http://www.advancedmarketsfx.com/New...nFXTrading.pdf
  • #109
  • Apr 19, 2010 8:05am Apr 19, 2010 8:05am
Just FYI, Oanda USD/CHF spread has been 0.9 for me all morning since ~2AM EDT. I'd usually seen it sticking tight above 1.
Hindsight is 20/20
  • #110
  • Apr 19, 2010 10:41am Apr 19, 2010 10:41am
Quoting cosgrove
Just FYI, Oanda USD/CHF spread has been 0.9 for me all morning since ~2AM EDT. I'd usually seen it sticking tight above 1.
Yes. And the Eur/Chf has been at 1 for quite a long time now.

They are doing 1,6 on Eur/Jpy. Last week it was 1,4 for most of the week.
  • #111
  • Apr 19, 2010 2:15pm Apr 19, 2010 2:15pm
What are the largest market orders anyone here is doing with Oanda? Would really like to hear some reviews of those trading >1M positions, what the slippage is at these levels.

Oanda's spreads have certainly tightened up beyond ECN + commissions levels in some cases, but if slippage is an issue on large orders, then the great spreads are all for naught.
  • #112
  • Apr 20, 2010 1:29pm Apr 20, 2010 1:29pm
Quoting Trader KGB
What are the largest market orders anyone here is doing with Oanda? Would really like to hear some reviews of those trading >1M positions, what the slippage is at these levels.

Oanda's spreads have certainly tightened up beyond ECN + commissions levels in some cases, but if slippage is an issue on large orders, then the great spreads are all for naught.
>1M with Oanda?
Is There Anybody Alive Out There?



http://digilander.libero.it/lagunari...o/Kamikaze.JPG
  • #113
  • Apr 20, 2010 1:36pm Apr 20, 2010 1:36pm
Quoting futures
>1M with Oanda?
Is There Anybody Alive Out There?


Point well taken, but with $166M in net capital, they've got to have at least a few traders at that size..
  • #114
  • Apr 20, 2010 1:52pm Apr 20, 2010 1:52pm
No troubles with 500K to 1M orders, i dont see why >1M should be much different. Its not like a 2-3 mil order will get anyone excited in FX.
  • #115
  • Apr 20, 2010 3:43pm Apr 20, 2010 3:43pm
Quoting LEXngton
You deserve your opinion. But I have a live account with them and I can assure you that eur/usd spread is not 2 pips, not even close. As for 100:1 leverage, many TRUE non dealing desk brokers use it, at least in USA. The commission formula is not complicated at all. And yes they were fined $150K for violations that occured 3 years ago but it was for misleading advertisement on their website and other record and bookeeping violations and that has been corrected. http://www.nfa.futures.org/basicnet/...px?seqnum=1475 They remain...
I agree. I've been live with them for 3 months now and I haven't had one problem with execution and I jump into some extremely fast moving trades. I was with MB trading before that, and I had problems virtually every few days. If you trade slow moving markets MB is fine, but anything with momentum and you get get huge delays. Advanced Markets gets me in immediately. Very happy with them so far.
  • #116
  • Apr 21, 2010 2:46pm Apr 21, 2010 2:46pm
What an incredible thread,

I also wanted to comment on one thing. and the fact is that spread is not everything.

One of a market maker practice is that they provide their own quotes and their own volumes. which many of the times doesn't have to reflect an exact what prices are they receiving on the other end from the counter party. Let me explain.

Please bare with me here, and i know the explanation for this might be a bit long but its worth it.

Risk departments and dealing desks have a very quick method of how they can track the market movement and the reaction of the total client exposure on their trading books.

In which for example If on EUR/USD the market is trading in a trend and the majority of their books are going for buy positions Market Makers or any Broker that has the power to move the price they do that against their cleint. I will explain in detail the example below from a dealing desk point of view

I see that on my Reuters or my feed provider that the price quote for EUR/USD is 1.3400/1.3402 with a 2 pip spread. and at the same time as i see that the market is trending upwards and majority or 75% of my clients on my dealing room books are going for a long positions.

as a dealing room I raise the quote but lower the spread and by this i mean that me as a market maker i provide the quote to my clients 1.34025/1.34030 with an offering of 0.5 pips spread.

Knowing that there is a 8 out of 10 clients will go in the trade in buy, and they will be executed with no issues what so ever, in the event that i would cover these clients I would make already a 3 pips profit on each trade, but in the event my clients go for sell, and i am looking to cover them, i will slip them over 1 pip.

Please do understand even though the spread might be very tight, you are still not trading the current or the market prices that are trading in the underlying market.

Have you ever heard of the Happy Hour trading offered by a couple of brokers before?

They used to provide 0 pips for at least 1 - 2 hours every day for a certain period of weeks as an offer. and how did they do the 0 pips offer, exactly the same method I explained above.

I am not pointing out that OANDA does the same, probably they do, maybe they do not.

Just do not be fooled with low spreads from a market maker. Low spreads isn't everything.
  • #117
  • Apr 22, 2010 7:30am Apr 22, 2010 7:30am
Quoting quantum007
What an incredible thread,

I also wanted to comment on one thing. and the fact is that spread is not everything.

One of a market maker practice is that they provide their own quotes and their own volumes. which many of the times doesn't have to reflect an exact what prices are they receiving on the other end from the counter party. Let me explain.

Please bare with me here, and i know the explanation for this might be a bit long but its worth it.

Risk departments and dealing desks have a very quick method of how they can track the market movement...
Thanks for the explanations quantum007 !
Seems to me that these M Maker can get money easier from clients who trade intraday, in very quick positions .
Seems that this doesnt work so well to Brokers when the clients go for a trade in a large period, with bigger stops, and trade for hours, or even a day.
Of course must be a losing points, but that will be probably a minor part of your profit, when you go for long periods.
Am i wrong ?
And Which is your Broker?

(sorry for the limited english, it is not my primnary language !)
  • #118
  • Apr 22, 2010 9:44am Apr 22, 2010 9:44am
Quoting Acic
Thanks for the explanations quantum007 !
Seems to me that these M Maker can get money easier from clients who trade intraday, in very quick positions .
Seems that this doesnt work so well to Brokers when the clients go for a trade in a large period, with bigger stops, and trade for hours, or even a day.
Of course must be a losing points, but that will be probably a minor part of your profit, when you go for long periods.
Am i wrong ?
And Which is your Broker?

(sorry for the limited english, it is not my primnary language !)
Hello, Sorry its me quantum007, but The admins decided to block my second ID. Apologies.

So yeah what you say is kinda right but kinda wrong.

Remember succesful traders, are traders taht follow very strict set of guidelines and modes of trading. Although emotions come into play. it is very easy to scalp either using manual method of EA. EA/ client will always exit on a minimum of 2 - 3 pips, and then will be hesitant to exit if the market goes against him hoping that the market will reverse in the next 5 minutes.

and before he realise his losses the market has moved against him another 20 - 30 pips every 15 mins. and no the client goes again with a 100 pips loss which wipes out his minor profits in the short term.

the same also applies for long term traders. where long term trades sometimes get too attached to their positions, and would close looking for the market to retrace in their favour. Believe me i have seen many accounts taht fell for the same mistake. and its not just the fact these are beginners. These are market professionals as well.

The most important how not to lose money is Forex is MONEY MANAGEMENT. if you know how to manage your risk, you will never be exposed to huge losses whatever broker cannot do anything for you. and Do not change your strategy when you lose. plan your strategy before market entry and exit. and you will be fine just by following it. with the right money management setup.

I trade with a couple of brokers, although i would strongly recommend FXCBS. I know some people may oppose me here, but after trying most of the brokers and working for many of them.. i think this is it!!
  • #119
  • Apr 23, 2010 12:21am Apr 23, 2010 12:21am
Quoting witsnpips
Yeah, FX Open does have decent spreads actually, check this comparison table out:

http://www.mataf.net/en/tools/forex-spread

Check out their demo account as well.
With quantum's post in mind, I checked out that mataf.net tool. According to it, over the past day or so, Oanda has had higher rates than FXCM (I don't mean to pit one against the other here, just working with the data at hand). However, when you include the spread, Oanda looks like a slightly better value, with differences measured in pipettes. (Oanda price + Oanda spread) < (FXCM price + FXCM spread)
Hindsight is 20/20
  • #120
  • Apr 23, 2010 5:01am Apr 23, 2010 5:01am
fxopen have low spreads, AND they're an ECN.

Seriously, give em a shot.
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