Demo of over 10 Brokers

One of the hardest thing to find and settle on in the forex space is a broker. My goal and requirement was to find a broker that had decent spread, no / hardly any slippage, well etablished, software platform / capability, and reputable. I read the various reviews and boards, but I wanted an open mind (I suggest you do the same - beginner or pro) and review things for myself. This review is by no means exhaustive review, but a high-level one. I have spent at least 12 hours per day in the past month just to provide a general feedback. Here's a summary of my current finding so far.

1 - FXCM: bad reviews by various people, and good also. Had the top 3 charting system I found and used. Most newbies start with this platform and learn (good or bad) about currency trading due to the ease of use; I can see why they lead in the space - they make it very easy. Excellent customer service and resources online. I personally did not find any problem in the demo and order entries. UK account is what you want to use if you want to set automated entries for stop loss / limit; specially request for that (great for scalpers). Don't bother with Metatrader unless you have special scripts / plugins you wish to use and stay away from the Flash application of Active Trader. Use the excellent Tradestation platform. Tradestation also works for all their account type including Active Trader; Micro account use the same platform, just different account number. The account number determines your account options and features.

2- Oanda: Reputable and had very good reviews, and slight negative; good far outweighs the bad. This broker is known for one of the lowest spreads around. The issue I had was their trading tool / lack of. Some traders use the platform for trades only and supplement with Ninjatrader as their charting and indicator system.

3 - ATC: ECN connection to FXCM technology. They tout themselves as Metrader provider to ECN technology using different technology from typical ECN bridge. Excellent spread and comission based fee; true ECN model. One of the best platform. They use FXCM feed.

4 - Advanced Markets - uses proprietary technology from Fortex (STP technology / ECN type connection). Very nice platform and lowest PIP spread I saw (lower than Oanda). They are in the states (East Coast), but seems small.

5 - FXDD: MT4, one of the favorites for scalpers, and well established Traders use this platform. The plus is its Currenex connections. Decent spreads. If you like MT4, this is a good broker, but if you don't, move on.

6 - Dukascopy - a highly regarded broker in the community due to their service, and platform. Scalpers and all alike are okay here. Their charting is so so, but spread, technology, and service are among the best reviewed and exprience. Their software interface is JAVA based, and looks close to FXCM in terms of layout (but not as good looking - who cares how it looks if it makes money though). Currently they MT platform in Beta.

7 - MB Trading: one of the highly preferred brokers for scalpers and FX community alike. I did not have any problem on their platform, but I personally do not like MT4 (one of their platform), so I continued on. Highly rated by others. NOTE: Although they do have one of the lowest spread, they are the most expensive in the SWAP rates compared to anyone I have reviewed on this list and off. They also have MBT Desktop platform asides from MT or Metatrader.

8 - Smart Trade FX: One of the better platform in terms of software interface. They also provide MT4, but the SmartTrader application is alot better.

9 - CitiFX: Not too well known and is a market maker but with a twist; see the difference yourself. It has decent pricing, and has an option of being FDIC insured. The interface is very good (.Net and not JAVA or MT4). Chart Interface is hideous at first, but customizable to look better than any of the above - easy for beginners too. I will go live with this for several reasons: spread are decent, charting is awesome to customize, FDIC insured, and backed by a large bank. By the way, their software is custom version of Saxo bank and their technology; derived from that platform. They have MT platform available.

10 - PFG Best- one of the top fx provider. Many different platform to choose from including Currenex. Good execution and reputable. they also have numerous platforms to choose from.

These are just some of my preferred brokers that I have reviewed in the past month - on a demo platform. The views expressed here are just a personal opinion - NOT a commercial recommendation for any. The major factors for me are ease of the software, user interface of the programs and available options, spreads, the financial stability of company / parent company, charting capability, and overall performance during testing. I reviewed all these simply because I want to make sure the platform I use when I go live is what I am comfortable with and not from what someone else recommended; I do take into account what others say, but I was open minded by performing my own due diligence. Good Luck everyone.

Regards,

Pinoyboy


NOTE:

By the way, you will notice I am not too fond of Metatrader - from the charting perspective. I am not opposed to using it; however, with my current style of trading, I trade from the charts. Using Metatrader's charts is not very good compared to the clean interfaces provided by FXCM's charts, CitiFX Pro charts, CMS VTrader charts, and others. Currently, I just want to work with one platform and charts. The professionals and more intermediate/advanced traders typically use MT4 or broker's platform, but rely on either ProRealTime or NinjaTrader as their choice of charting software. ProRealTime is a charting software I would have to choose if I have to use a broker I preferred and had only the option of using MT4. As for now, the current broker I have chosen provides everything in one package / platform. It's all about choices and preference. UPDATE: After extensive use of Metatrader, I actually prefer the charting due to the abundant customizations and resources available for the platform.

Dont forget that many Brokers set their Demo to impress. Some even give you better prices than the actual Bid/Ask. LIVE is a 1000% different creature. (Example: FXCM is one of the worst brokers. LIVE they slip, disconnect and freeze like crazy. Terrible broker.)

Applause for a needed thread.

You missed a few -- FX Solutions, whose chart platform features infinitely compressable tick charts; GFT, who allow freehand drawing and have more-complex info per tick bar than others; and, InstaForex, who, even while a bucket shop, do portray their demo realistically.
InstaForex even shut down my platform with the usual MT4 tricks when, almost a year ago, I got lucky with over a hundred pips in under a couple of minute, wouldn't close my trade for me. (Lost it dozens of times over and haven't been able to perform the feat since then.) Now, that's serious.

CitiFx was interesting to me, also, with their treatment of Gann material and the clean charts. They (not their charts) have been around forever, too. Their opening account deposit is just so high though, like Interactive Broke r's.

You keep saying you don't like MT4, and don't say why. Despite its having lots of built-in trade entry responses that serve bucket shops, its charts are friendly, language that I've read is flexible and simple, and a community with free indicators and other stuff that at least rivals that of Tradestation and the rest.
Then you down MB Trading because they have MT4; admirably, they built from scratch a version of MT4 that works around the trade delay responses. I've read not-so-good stuff about mere bridges, whether a popular Currenex version from FXDD or FXCM's version (FXCM, while a kind of bucket shop, having a very fast (if allow for approximate entries on their form) nonMT4 platform of their own.)
There's lots of other ff members who know more on this subject than I, such as here.

Best of luck finding a broke r. The Tradestation platform is a good choice, you said. I was there on demo five years ago; its content was refreshing.

Finding a good broker is like a position.
You can win or lose.
But for me: demo >>/dev/null
Good luck.

I know I missed a few but as I mentioned, I actually demo'd more, but these are as my top 10 brokers overall at the moment. Another KEY criteria for me was the brokers had to be in US, UK, Australia, Canada, Germany, or Switzerland - not in places like Cyprus or others country - call it a sense of security if you may. I wanted to post a screenshot of all of them because screenshots speaks volumes, but I am now using my real PC for my platform of choice; no longer testing but now focusing on my choice. I am still immersed in my own learning right now. By the way, I did not mention FXOpen simply because it is just a white label of Dukascopy's technology. There are other but they were white label for someone else already listed. The exception was ATC. Although FXCM white label, they do have a different technology for bridging to the ECN network.

If you are a scalper, you may want to add LCG to your list to review. And as ha-pattern above suggested, using tick charts is a tool / method used quite a bit by scalpers. No matter who you choose, ensure that charting is good or supplemented by either Ninjatrader or ProRealTime or similar. From my short-term view and experience thus far, the charting is what provided and enhanced my profitability; it made the difference for my style.

Lastly, if you were to try these various brokers out, I recommend using VirtualBox in order to not "over install" all these broker's software on your real pc. When I go live, I will only install the broker's software of my choice on my real pc - not virtual. The virtual experiment was intended for educating myself on the vendor's various platform without effect on a real pc system. Using VirtualBox, I was able to revert back my clean image of XP and install a new vendors software each time (not that you can't install all of them at once but clean state / baseline was my choice).

NOTE (same from above):

By the way, you will notice I am not too fond of Metatrader - from the charting perspective. I am not opposed to using it; however, with my current style of trading, I trade from the charts. Using Metatrader's charts is not very good compared to the clean interfaces provided by FXCM's charts, CitiFX Pro charts, CMS VTrader charts, and others. Currently, I just want to work with one platform and charts. The professionals and more intermediate/advanced traders typically use MT4 or broker's platform, but rely on either ProRealTime or NinjaTrader as their choice of charting software. ProRealTime is a charting software I would have to choose if I have to use a broker I preferred and had only the option of using MT4. As for now, the current broker I have chosen provides everything in one package / platform. It's all about choices and preference.

After a few more weeks and thoroughly testing out the various brokers, I have to conclude that one should go with the broker/platform they feel comfortable with. Also, I was a bit critical of Metatrader before, but after customizing the chart to my needs (i.e. color scheme, preferred indicators, custom settings, etc), I have to say it is very good. Out of the box, it's not very "appealing" but after various tweaks, I actually prefer it.

As a side note, I only started looking at another broker (which only offerred MT4) because I have been reading alot lately about Citi's (I was originally only using CitiFX) business units - negative about downsizing various business units - nothing about FX side of it, but I wanted to be ready just in case. After testing out the competition and MT4 further, I am glad I did.

Great thread pinoyboy. Finding a good broker, IMHO, is one critical aspect to trading success, and I think some that joined the 95% club failed in that area. However, I'm not saying their failures should be 100% blamed on the broker, I've just seen way too many posts about virtual plug-in's, stop hunting and other shady tactics, etc. by both inexperienced and experienced traders.

Read in this thread that some of the posters recommended staying away from brokers that offer only MT4:

http://www.forexfactory.com/showthread.php?t=215321

Here's another one that's an interesting read:

http://www.forexfactory.com/showthread.php?t=127440

Luckily, I have a trading system which works well for me, but the ongoing search for brokers continues; it seems things are working backwards for me (in a good way) - I found my system (hard part) before the broker (should have been easy part). The search continues for the purpose of optimizing every settings/setups (charting, spreads, commissions, offers, etc) and just recently I've also added the Currenex (STP processing)feeds. Typically it is expensive, but I have found FXDD with good cost / requirement.

So brokers can be broken down to offer the following order entry system:

1 - Metatrader 4/5
2 - Their own custom software (FXCM, Gain/Forex.com, etc)
3 - Currenex (here are the providers - http://www.currenex.com/about_us_white_label.html)
4 - Combination of the above offerrings

It appears that I may use Currenex with a third-party charting. The cost is also very good for my setup with Currenex vs retail (i.e. volume traded, dollar amt, etc).

I have been trying some as well and got to the conclusion that I hate most of these interfaces. MT4 is decent, but was used to better.

I starting demo trading for months in a broker (which I afterwards read was a scammer), named Plus 500, and they're interface is phenomenally simple. The spreads and the bad reviews and rep make it unusable for me though.



So I've been using FXDD lately and I've been having major issues with Stop Losses / Take Profits not being met, even though the graphs show they WERE.

Just now I had a order to go short on Gold at 1240.00 with a Stop Loss at 1241.00. Both the charts and the market watch on the MT4 show that the market went up as much as 1239.80, and my Stop loss got triggered. What the hell? Is this normal?

I mean if it was real money I'd be mad as hell, as it went down 4 points and a whole lot of pips in just a couple of minutes.




It's not the first time that it happens in a couple of days, last night I had a buy order on EURGBP, my price was met by a spike, it went past my buy order and the order didn't get filled.


I'm not sure I can trust my money to FXDD if things like this are an issue live.

anyone care to explain what might have happened?

Follow up to my exhaustive broker testing...

In terms of comfort level and execution of a platform, I split my trading two weeks ago between ATC Brokers and Amifx.com - excellent decision. With ATC, I'm up over 50% and Amifx.com over 105% in two weeks - this is an indicator of my comfort level with these two. ATC is MT4 and Amifx is using its own platform (see below).

NOTE: The Currenex platforms were ok but they are still retail and the spreads were not any better than ATC and Amifx.com. Currenex is a touted technology, but as a technologist myself, I can tell you alot of these brokers just hype it up for their firm - treat it as any other retail broker / platform. Also, make sure you review Rollover cost, etc of brokers you choose. I would of went with MB Trading since they have excellent cost but their Rollover cost is atrocious; not to mention their DEMO is the worst in terms of performance. I'm a scalper overall but some trades may rollover to next business trading day and that cost must be fair. Balance cost, performance, and overall comfort level.

Lastly, I'm not a news trader, but the two I've chosen are fine from my experience.

Here is Amifx screenshot:
http://i55.tinypic.com/20ro1ns.jpg

This is a very good thread especially for a noob like me so thank you. I have been reviewing and looking for countless hours for the best "fit" for me. My Trading style is scalping but what I don't know is how different will the demo be from a live situation. I am currently using TDFX and don't care for the spread but have a new demo account with MB Trading. Will have to check out the rollover cost as mentioned in an earlier thread, had no idea that even existed. I have looked at Dukascopy but also would like a way to withdraw funds with out getting banged up with charges.

I use MT4 and at first found it odd compared to online platforms like fxpro but getting use to it and liking it.

When you look and review a broker against one another, here are some basics to compare and items to keep in mind.

1 - Spread cost

2 - Is it commission based or spread based only?

3 - What is the Rollover cost (i.e. althought MB Trading has good
numbers for first two above, they are the worst among the industry on this cost)?

4 - Review their demo platform and ensure that it is robust with no disconnects and no weird problems with account creation or resets (i.e. MB Trading has this problem; verified). If demo is suspect, why would you trust the live?

5 - Is the broker regulated?

6 - Review their financial strength - http://www.cftc.gov/MarketReports/Fi...FCMs/index.htm

7 - What is the available leverage?

8 - Where are they located?

9 - Do you trust company located is some obcure country; imagine having to resolve issue outside your country?

10-Is the platform offerred to your satisfaction?

11-Did you extensively review this broker's and the platform for at least 2 weeks straight? Do not move on if not, and do not take the word of others.

12-How responsive is support?

13-If there are issues, how long of a response time do you have to wait for; time difference between you and broker can be a factor?

14-If Internet connection is suddenly lost, how can you close a trade immediately, can you call for example?

15-Is there a mobile platform available?

16-Is the broker using certain other brokers feed?

17- If they have MT platform, is it your "typical" MT platform or is it a custom version for ECN access such as ATC Brokers, etc?

18-...more to be added...

IMHO, you are deluding yourself thinking that you can get a good idea of a broker's performance only by trying their demo. I have had a live MT4 account with MB Trading for almost a year, and I can tell you it's a million times better than their demo (and most other MT4 brokers).

Many bucket shop brokers have fantastic demo platforms with lightning fast execution, zero slippage and non-existent re-quotes or disconnects etc. But when you trade live, suddenly you are getting slipped, requoted and disconnected enough to make your head spin.

MB Trading's MT4 demo is a testing environment...it is NOT intended to sell their services to potential clients...at least from what I've read. And I can tell you from experience that the demo environment with almost any broker is NOT what you get when you go live...the difference with MBT was that was a GOOD thing.

Demo is for getting to know the platform/interface to see if you like it and for testing/practicing trading strategies. That's it.

If demo is suspect, why would you trust the live? I am just saying that I did not get good results of their demo functionality, period. Let's leave this discussion of this broker in their broker thread which has numerous / similar complaint of similar finding for their demo. The keyword was demo not live. This thread is about the demo platforms of various brokers.

Don't get me wrong PB...I completely agree with you that MBT's demo sucks. I used MBT as an example, but I was trying to emphasize for noobs out there that the solid connection status and lightning fast execution they get on their broker's demo platform might not be there when live trading. All I'm saying is you won't know 100% until you are live trading with a broker for a little while.