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Low Spread ECN/STP Broker

  • #21
  • Jan 22, 2012 8:43pm Jan 22, 2012 8:43pm
so are short term scalpers better off paying commish or spreads?

I've been paying commish with finfx and its 7 bucks rt so if your doing dollar lots your -7 as soon as you enter a trade. Kind of sucks.
  • #22
  • Jan 22, 2012 11:36pm Jan 22, 2012 11:36pm
Quoting tommbstone
so are short term scalpers better off paying commish or spreads?

I've been paying commish with finfx and its 7 bucks rt so if your doing dollar lots your -7 as soon as you enter a trade. Kind of sucks.
Thats if you focus on the $ rather than the levels..

Here is a Hint -Tight spreads plus commission is what the pro's use.

You are trying to get dealt your t/p ?

You are trying not to get stopped out?

Look at the bottom line and do an assessment of what would have happened with commish or spreads.

Its a no brainer
  • #23
  • Jan 22, 2012 11:42pm Jan 22, 2012 11:42pm
Here is another tip.

Those trying to use true ECN's whereby you become the market ie dealing inside the spread have to be mindful.
If the broker doesnt have active clients its a waste of time. ie you wont get hit especially in the non major ccy pairs.

You are better off with tight streaming spreads from reliable liquidity suppliers.
  • #24
  • Jan 23, 2012 1:10am Jan 23, 2012 1:10am
there is always a spread difference between bid and ask.
I was just woundering if its better to just pay spread or the comish.

I must do some more work and research. Thx Lasty
  • #25
  • Jan 23, 2012 2:45am Jan 23, 2012 2:45am
Quoting tommbstone
there is always a spread difference between bid and ask.
I was just woundering if its better to just pay spread or the comish.

I must do some more work and research. Thx Lasty
It really doesn't make a scrap of difference whether you have a 0.3 pip spread and a 0.7 pip commission or just a 1 pip spread, either way the total cost is 1 pip. About getting your TP/SL hit, well with a larger spread with no commission you just put your TP 0.7 pips closer and your SL 0.7 pips further and then it amounts to exactly the same thing.
  • #26
  • Jan 23, 2012 2:32pm Jan 23, 2012 2:32pm
most of the spreads I see are 1.2 to 2.0 anyway so it does come out about the same if not higher on the spreads.
  • #27
  • Jan 25, 2012 3:37pm Jan 25, 2012 3:37pm
Guys ECN-s will soon be written in the history books. The new way is Armada Markets and LMAX in London. Everything goes through the exchange, official, no hidden fees or scams. Out of all the ECN-s only currenex has any real value. All others are just scams. Everybody knows that. During normal market conditions real interbank spread on EURUSD is most of the time lower or at 0.5 pips. Most ECN brokers provide EURUSD at 1.0 pip or more. Don't you get it? You are being fooled for the second time.

In Russia most forex traders started to trade mini fRTS index when the exchange put up better liquidity and transparency. The same will happen elsewhere. People are sick and tired of scam brokers.
  • #28
  • Jan 25, 2012 3:52pm Jan 25, 2012 3:52pm
So whats Armada Markets. Some sort of lmax IB? Google doesnt appear to know about it.
  • #29
  • Jan 25, 2012 5:14pm Jan 25, 2012 5:14pm
^what he said.

and is there one taking us poor usa shumcks.
  • #30
  • Jan 25, 2012 5:25pm Jan 25, 2012 5:25pm
armadamarkets.com

Apparently an estonian firm offering MT4 for LMax. They have lower fees than lmax themselfs. Still wont use MT tho.

Will be interesting if their bridge works ok. Looks like Oanda and MBT have nothing but trouble ducttaping MT on to their exisiting infrastructure.
  • #31
  • Jan 26, 2012 1:12am Jan 26, 2012 1:12am
Armada Markets is a new broker having a totally different business model. They are basically operating as a futures broker, meaning they send all orders to LMAX as this is the only way clients want to trade now. I believe ECN will soon be history as those who do not want to trade futures will go to the brokers that clear at LMAX which is the only FX exchange in the world. If you compare Armada's spreads then spreads are identical to LMAX. The only thing is that due to large volumes they are able to charge a commission of 2.0 USD per 100,000 USD traded. LMAX charges 2.5 USD. My father works for Nordea Bank in Sweden and he visited Armada as they use Nordea as their primary deposit bank.
  • #32
  • Jan 26, 2012 1:26am Jan 26, 2012 1:26am
Quoting Middleton
Armada Markets is a new broker having a totally different business model. They are basically operating as a futures broker, meaning they send all orders to LMAX as this is the only way clients want to trade now. I believe ECN will soon be history as those who do not want to trade futures will go to the brokers that clear at LMAX which is the only FX exchange in the world. If you compare Armada's spreads then spreads are identical to LMAX. The only thing is that due to large volumes they are able to charge a commission of 2.0 USD per 100,000 USD...
Ok.... I bite, what's with all the sub 50 post accounts on this forum preaching about LMAX?

Also, futures are completely different from the spot market. Are you sure you mean "futures broker" when you're talking about Armada? I think you mean STP or something, since from what you've described they are using LMAX as a liquidity provider and passing order through to them for a commission.

Again, also, are you sure you know what ECN stands for?

Inserted Video





Just wanting clarification in case your terminology is mixed up.
FXGears.com
  • #33
  • Jan 26, 2012 4:48am Jan 26, 2012 4:48am
A lot of people talk about ECN brokers. I personally believe that ECN will be history in some years. The future will be with the exchange connected FX brokers. Whether it is LMAX, Armada Markets or somebody else, but somebody will break the ECN market model, for good.
  • #34
  • Jan 26, 2012 5:16am Jan 26, 2012 5:16am
Spreads on the Armada Demo are tighter than on the lmax live platform most of the time. Doesnt look like pure STP to lmax. They either "prettify" the quotefeed or do something else. I dont like it (saying one thing, and then doing something else).
  • #35
  • Jan 26, 2012 5:40am Jan 26, 2012 5:40am
Quoting shrike
Spreads on the Armada Demo are tighter than on the lmax live platform most of the time. Doesnt look like pure STP to lmax. They either "prettify" the quotefeed or do something else. I dont like it (saying one thing, and then doing something else).
Hey, I took a look at their website armadamarkets.com where on the Demo account page they say the following:
"Important notice: Please be advised that demo account terms and conditions are not 100% identical to real account trading terms. Prices on demo accounts are indicative and may not reflect the real executable prices on the LMAX Exchange in London where we clear all our clients trades."

Fair enough I think. I will begin my testing today.
  • #36
  • Jan 26, 2012 5:45am Jan 26, 2012 5:45am
They should not display tighter quotes on demo than on live. I would find that deceiving.
  • #37
  • Jan 26, 2012 7:18am Jan 26, 2012 7:18am
Quoting shrike
They should not display tighter quotes on demo than on live. I would find that deceiving.
well.........if you see this do not even consider such a "broker"
  • #38
  • Jan 26, 2012 10:27am Jan 26, 2012 10:27am
Quoting milani
A lot of people talk about ECN brokers. I personally believe that ECN will be history in some years. The future will be with the exchange connected FX brokers. Whether it is LMAX, Armada Markets or somebody else, but somebody will break the ECN market model, for good.
And what is the difference between LMAX and an ECN platform like Currenex? Both aggregate liquidity from the same banks and prime brokers.
  • #39
  • Jan 26, 2012 11:35am Jan 26, 2012 11:35am
I would say the difference between a FX Ecn and an exchange is that the actual order-matching is done by the exchange itself, wheres the typical fx ecn routes orders to LPs and sees if a fill comes back or not(i.e. no last look privileges on an exchange). An exchange has a public rulebook where it describes the exact order matching algorithm (i.e. price-time priority) and other rules. Also, there are set rules by govts that an exchange needs to comply with.

On another note, i would find it more convincing if the ArmadaMarkets-person from above would register an 'official' account here and not post under an alias (like the FXCM and MBT reps do).
  • #40
  • Jan 26, 2012 11:46am Jan 26, 2012 11:46am
Quoting shrike
I would say the difference between a FX Ecn and an exchange is that the actual order-matching is done by the exchange itself, wheres the typical fx ecn routes orders to LPs and sees if a fill comes back or not(i.e. no last look privileges on an exchange). An exchange has a public rulebook where it describes the exact order matching algorithm (i.e. price-time priority) and other rules. Also, there are set rules by govts that an exchange needs to comply with.

On another note, i would find it more convincing if the ArmadaMarkets-person from above...
Good point. Thank you Shrike!
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