Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk | Page 2 | Forex Factory

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Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk

  • #21
  • Feb 27, 2011 1:03pm Feb 27, 2011 1:03pm
Quoting Trader KGB
...the ECN category should really be broken into two sub-categories:

ECN-STP (IB, MBT, Duka, Delta, FXCM AT, all Currenex brokers, etc)
Real ECNs (CME, Hotspot, etc)
TraderKGB:

...are you sure that Hotspot does not fall under the 'ECN-STP' category as well?

To my humble knowledge it's only FXall and EBS who fall under the RFQ category whereby printed BIDS and OFFERS are binding and are not Indicative as is the case with your listed 'ECN-STP' Broker's list above.
  • #22
  • Feb 27, 2011 6:53pm Feb 27, 2011 6:53pm
Quoting Trader613
TraderKGB:

...are you sure that Hotspot does not fall under the 'ECN-STP' category as well?

To my humble knowledge it's only FXall and EBS who fall under the RFQ category whereby printed BIDS and OFFERS are binding and are not Indicative as is the case with your listed 'ECN-STP' Broker's list above.
Almost 100% certain. That was their big selling point when they first launched, that and being one of the first inst. platforms to quote in sub-pip increments.
  • #23
  • Feb 28, 2011 11:08am Feb 28, 2011 11:08am
Quoting Trader KGB
Good point, however the only real liquidity on the typical ECN is that which is posted by clients....
ECN-STP (IB, MBT, Duka, Delta, FXCM AT, all Currenex brokers, etc)
Real ECNs (CME, Hotspot, etc)

In the first category, the ECN is primarily an aggregator of external LP quotes, client orders are STP'd to the LPs, giving the LPs the right to accept/deny ('last look'). The liquidity displayed in each of these ECNs is therefore somewhat of a mirage, the LPs aren't on the hook for execution.

The second category are marketplaces with real live...
I agree but i am not su sure about the second category is alwyas wysiwyg
for my understanding there is not REAL MARKET in FX as the liquidity is disagregated and there is no central exchange.

ebs hotspot fxall and currenex integral have ECN type of systems ( i mean the sofware) but to my knowledge the liquidity you can get is directly proportional to the credit line that the institutions has.
  • #24
  • Feb 28, 2011 11:29am Feb 28, 2011 11:29am
Quoting Forexia
Thanks for your research and explanation about NDD. They are really good.

I absolutely agree with you that NDD is totally redundant when you have STP and not only that but also very inefficient. Why have the broker go back and forth manually "present" your order to the counter-party and then transmit the counterparty's order back to you when they can just transmit your order directly to the counterparty and vice versa through STP and just collect the commission when the trades take place? Why still step in between? What are they doing when...
Hello!
Any experience with PFG FX trader? Good, bad, ugly???
  • #25
  • Edited 12:57pm Feb 28, 2011 12:42pm | Edited 12:57pm
Quoting Jaro
Hello!
Any experience with PFG FX trader? Good, bad, ugly???
I know PFG (with PFGBest platform) which is not same as PFGFX (which is Russian owned suspicious broker).
Something in between, better than most of popular bucket shops, but still closer to typical retail broker than real institutional FX IMHO.
In all fairness, have no direct experience, only what I've heard from others.
It might be quite good intermediate step up from flagrant MM manipulators toward pro FX trading.

More opinions welcome.
  • #26
  • Edited 1:08pm Feb 28, 2011 1:00pm | Edited 1:08pm
I thought they were based in England??? They have address in UK, Russia and USA??
  • #27
  • Feb 28, 2011 3:21pm Feb 28, 2011 3:21pm
I am new in forex market.
Less than a year.
Already loose $5000.00.

I am learning so many thing everyday.

So how we like me small investor and new to forex market gonna survive ????

Any idea or trick ??

Or just leave the forex market and find any other market?
  • #28
  • Feb 28, 2011 8:45pm Feb 28, 2011 8:45pm
Quoting Trader KGB
Almost 100% certain. That was their big selling point when they first launched, that and being one of the first inst. platforms to quote in sub-pip increments.
Well one way they make sure they "distinguish" themselves is that they only cater to institutional clients and if you are an individual investor, the min. account balance is $1,000,000.

They used to cater to retail invesotrs like us and their min. balance requirement was $5K but then they changed.
Make your losses in demo. Earn your profits live.
  • #29
  • Mar 1, 2011 11:48am Mar 1, 2011 11:48am
Quoting Jaro
Hello!
Any experience with PFG FX trader? Good, bad, ugly???
No. Never heard of this broker so no comments can be given. You can find out more about brokers by going to broker review websites on the Internet.
Make your losses in demo. Earn your profits live.
  • #30
  • Mar 1, 2011 11:50am Mar 1, 2011 11:50am
Quoting abd_smd
I am new in forex market.
Less than a year.
Already loose $5000.00.

I am learning so many thing everyday.

So how we like me small investor and new to forex market gonna survive ????

Any idea or trick ??

Or just leave the forex market and find any other market?
1. DON'T quit your day job.

2. Create a demo account and try to develope trading strategies that are profitable.

3. DON'T trade with real money UNTIL your demo account is profitable for at least 6 months.
Make your losses in demo. Earn your profits live.
  • #31
  • Mar 1, 2011 12:00pm Mar 1, 2011 12:00pm
Thanks, will do!
  • #32
  • Mar 1, 2011 12:44pm Mar 1, 2011 12:44pm
Quoting Forexia
Well one way they make sure they "distinguish" themselves is that they only cater to institutional clients and if you are an individual investor, the min. account balance is $1,000,000.
True. Their prime offering was $100k as-of 2008, but it did indeed increase to $1M. I think you can still get thru to them via a 2nd/3rd tier prime like ADM or FC Stone for a reasonable amount (~$250k).

Quote
They used to cater to retail invesotrs like us and their min. balance requirement was $5K but then they changed.
Right, but that was only on their now-defunct retail platform, with different/less liquidity.
  • #33
  • Mar 1, 2011 1:39pm Mar 1, 2011 1:39pm
Quoting Trader KGB
True. Their prime offering was $100k as-of 2008, but it did indeed increase to $1M. I think you can still get thru to them via a 2nd/3rd tier prime like ADM or FC Stone for a reasonable amount (~$250k).


Right, but that was only on their now-defunct retail platform, with different/less liquidity.

Hi so do you know the current spread on HOTSPOT directly vs using a prime as you pointed out?
thanks
  • #34
  • Mar 1, 2011 2:52pm Mar 1, 2011 2:52pm
Quoting Forexia
1. DON'T quit your day job.

2. Create a demo account and try to develope trading strategies that are profitable.

3. DON'T trade with real money UNTIL your demo account is profitable for at least 6 months.
Thanks for ur advice. is there any effective strategy to learn ?
  • #35
  • Edited 8:08pm Mar 1, 2011 4:06pm | Edited 8:08pm
Quoting Rfbfx
Hi so do you know the current spread on HOTSPOT directly vs using a prime as you pointed out?
thanks
Can't help you there. I don't believe the spread/liquidity at Hotspot varies based upon the credit of your prime as you mentioned (I know it can differ on other institutional platforms, but not sure about Hotspot). Your best bet is to call Hotspot directly and confirm.
  • #36
  • Mar 1, 2011 4:59pm Mar 1, 2011 4:59pm
Quoting Creator
I know PFG (with PFGBest platform) which is not same as PFGFX (which is Russian owned suspicious broker).
Something in between, better than most of popular bucket shops, but still closer to typical retail broker than real institutional FX IMHO.
In all fairness, have no direct experience, only what I've heard from others.
It might be quite good intermediate step up from flagrant MM manipulators toward pro FX trading.

More opinions welcome.
I thought they were based in England??? They have address in UK, Russia and USA??
  • #37
  • Mar 1, 2011 9:23pm Mar 1, 2011 9:23pm
Quoting Trader KGB
Right, but that was only on their now-defunct retail platform, with different/less liquidity.
Which is really a shame. I really liked their retail platform. It was pretty user-friendly and customizable. Their spread is not the most competitive sometimes but they were the few that allowed stop-limit orders back then AND allowed hedging.

Too bad they decided to cater to the "BIG BOYS".
Make your losses in demo. Earn your profits live.
  • #38
  • Mar 1, 2011 9:33pm Mar 1, 2011 9:33pm
Quoting Forexia
Which is really a shame. I really liked their retail platform. It was pretty user-friendly and customizable. Their spread is not the most competitive sometimes but they were the few that allowed stop-limit orders back then AND allowed hedging.
True, FXr was a great platform. The retail world didn't need the loss of a reputable ECN.

Quote
Too bad they decided to cater to the "BIG BOYS".
I believe the CFTC decided for them. HS likely felt selling their clients to FXCM and concentrating solely on institutional was a better route than the $20M net cap and all the other hoops to jump thru for the CFTC/NFA.
  • #39
  • Mar 1, 2011 9:33pm Mar 1, 2011 9:33pm
Quoting abd_smd
Thanks for ur advice. is there any effective strategy to learn ?
Well, you have to develope your own "effective" strategy that is tailored to your trading style, your trading timeframe and objectives. Everybody's different. There is no strategies that's "one size fits all".

I would suggest you to first get a demo account and start by watching the FX market and then do some research on some of the basic technical indicators like moving averages, MACD, Bollinger Bands, RSI, Fibonacci and etc. And also learn the Economic indicators that gets published on news everyday that can move the market. Start with these, once you gain more experience in demo trading, then you can start to build strategies that fit your trading.

This Forex Factory forum has really good threads on strategies that you can do some reading on and there are other good websites as well such as www.babypips.com and www.investopedia.com that you can start your research on.

Good Luck!
Make your losses in demo. Earn your profits live.
  • #40
  • Mar 1, 2011 9:41pm Mar 1, 2011 9:41pm
Quoting Trader KGB

I believe the CFTC decided for them. HS likely felt selling their clients to FXCM and concentrating solely on institutional was a better route than the $20M net cap and all the other hoops to jump thru for the CFTC/NFA.
Really? You think it's the $20M net cap that made them jump ship? They were making it fine though before they decided to go institutional and I hardly doubt that they would have trouble making that requirement every year. They offered good and, like you said, reputable service. I was thinking it was a profitability issue. They just wanted to make more money and they were't happy with the amount that they were making with us retail traders.
Make your losses in demo. Earn your profits live.
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