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Low Spread ECN/STP Broker

  • #41
  • Jan 26, 2012 12:40pm Jan 26, 2012 12:40pm
Quoting systray
And what is the difference between LMAX and an ECN platform like Currenex? Both aggregate liquidity from the same banks and prime brokers.
Many ECN-s are not regulated, ECN-s have a last-look-policy meaning that even if a trade has been made they are allowed to bust the trade without any reason. Also, ECN-s capitalization is a joke, they do not have any kind of capital should anything happen. LMAX has 150 mln pounds of equity plus the backing of Goldman Sachs. Most ECN-s trade against their clients. That's a fact and everybody knows that.
  • #42
  • Jan 26, 2012 1:45pm Jan 26, 2012 1:45pm
ECN capitalization is not really an issue since they dont take any risk. They only facilitate bilateral trades, settlement and credit risks rest on the respective prime brokers. Firms like Hotspot or currenex dont hold any client money neither.
  • #43
  • Jan 26, 2012 2:48pm Jan 26, 2012 2:48pm
Quoting shrike
ECN capitalization is not really an issue since they dont take any risk. They only facilitate bilateral trades, settlement and credit risks rest on the respective prime brokers. Firms like Hotspot or currenex dont hold any client money neither.
On planet Earth most medium and smaller ECN-s absorb risk. Maybe it's a different story on Mars or one the Moon, who knows. I will let you all know when I get there. Keep up the good work.
  • #44
  • Jan 26, 2012 2:53pm Jan 26, 2012 2:53pm
And what kind of risk would that be on your planet?
  • #45
  • Jan 26, 2012 3:45pm Jan 26, 2012 3:45pm
Shrike, I think we as traders all deserve little bit more transparency. 30 years ago there was no such thing as a regulated commodities market. Today there is. Markets always move towards regulated and transparent venues. 50% of Russian FX traders moved to trade futures when a convenient instrument was introduced. Do you know that some Russian forex brokers sent hitmen to meet clients who made a lot of money and then wanted to check out?

But coming back to ECN-s I think ECN-s were just one step on the path to exhange-based FX trading. I could be wrong, time will tell. Made a few bucks today, gonna hit the sleep button now. Peace.
  • #46
  • Jan 27, 2012 8:14am Jan 27, 2012 8:14am
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...
A ECN publishes unfilled orders to the network's subscribers (which you call Liquidity Providers) for the subscribers to send matching orders which will then make both the unfilled order and the new order filled later. This is different to routing unfilled order to LPs for a fill which is what STP brokers do. A traditional stock exchange has the public rulebook bound by law but does LMAX really have that? I just cannot see how LMAX is substantially different to a ECN marketplace.

LMAX is a multi-asset exchange. But it specialises in FX. I think the trendy thing is the multi-asset part not how orders get filled which is similar to ECN.
  • #47
  • Jan 28, 2012 11:19pm Jan 28, 2012 11:19pm
Quoting alstural
one should count total cost(spread+commission)

before proclaiming"the best........"

(lmax is not a charity)

and not to forget about margins

(index cfd margins are out of touch with reality)

for "budget" british traders forex looks ok'ish

but pepperstone and finfx look better
They are the best even if their spreads are not the best BECAUSE they CAN'T srew around with your orders, no fu..... games
  • #48
  • Jan 29, 2012 12:28am Jan 29, 2012 12:28am
Quoting Cocoflanel
They are the best even if their spreads are not the best BECAUSE they CAN'T srew around with your orders, no fu..... games
The Pepperstone Razor account and FinFX's ECN accounts get their price feed directly from Integal and route orders there as well. There's no dealing desk.

Integal services so many different types of entities within the market they can't just adjust their price feed to mess with one trader (or a group for that matter.)

But all that aside... I also do quite a bit of business through a market maker (Oanda) and I'm 100% confident they aren't messing around with individual traders either.

The point is, a broker is going to screw with you if they are a bad broker. It's easier to do that if they are a market maker model, but being a market maker doesn't mean they are automatically evil (using Oanda as the example here.) Not all brokers are bad apples, but the execution model alone isn't going to save you if they happen to be rotten.
FXGears.com
  • #49
  • Jan 30, 2012 6:19am Jan 30, 2012 6:19am
Hi,

I'm searching for a new broker too! More threads/reviews I read, more finding a good broker become a dream...

What I'm searching for :

Low spread (+commission) for majors!!
Leverage : around 100/200.
min deposit : max. 5000€.
good for scalping and news trading
With MT4, but I use just some indicators on it...

Waiting for answers/advices!
Thanks
  • #50
  • Jan 30, 2012 6:34am Jan 30, 2012 6:34am
Quoting ADAMdeneige
Hi,

I'm searching for a new broker too! More threads/reviews I read, more finding a good broker become a dream...

What I'm searching for :

Low spread (+commission) for majors!!
Leverage : around 100/200.
min deposit : max. 5000€.
good for scalping and news trading
With MT4, but I use just some indicators on it...

Waiting for answers/advices!
Thanks
Have you looked at universal fx?
  • #51
  • Jan 30, 2012 7:30am Jan 30, 2012 7:30am
I do not know if it has been mentioned before , but we should not only think about lower spreads and taxes. There are a lot of others parameters to be taken into account: Orders full filling %, network delay, client support etc...
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  • #52
  • Jan 30, 2012 10:52am Jan 30, 2012 10:52am
Universal FX seems good, I read some good reviews about them, but did you (or someone) trade with them?
  • #53
  • Feb 1, 2012 7:09am Feb 1, 2012 7:09am
Useful thread:

http://www.forexfactory.com/showthread.php?t=263863
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  • #54
  • Feb 1, 2012 10:14am Feb 1, 2012 10:14am
Hi,

I'm searching for a new broker too. I was using IBFX (AU) for almost 2 years but im not happy with it due the High Spread.

I read a lot of threads/reviews of dif Brokers (Dukascopy-MB Trading-universal fx-FinFX-pepperstone), choosing one Broker becomes difficult</SPAN>

What I'm searching for:

Low spread (+commission) for majors!! With Hedging
Leverage: Min 1:100 prefer 1:400
deposit: 5000$

mostly im trading with Pending order but also I need it good in news trading.
With MT4 but not necessary. As I can use DEMO MT4 account of diff brokers to put some indicators on it...

Waiting for advices!
Thanks
  • #55
  • Feb 1, 2012 4:03pm Feb 1, 2012 4:03pm
Hello.

Average of between 0.1 and 0.5 pip spreads good enough for you???

Only one place to look: Deltastock (deltstock.co.za) (true ECN/STP with Level II Market Depth, a choice of five different Liquidty Providers to choose from, through the same platform, to obtain the best price quote, no requotes via Level II, and no slippage possible).

Any questions??? Anyone??? 'Top that'!!! LOL!!!

Oh and DO remember to check broker reviews and ratings on, say, Forex Peace Army (as but one example) before making any decisions.

Regards,

Dale.
  • #56
  • Feb 1, 2012 4:09pm Feb 1, 2012 4:09pm
Quoting fintrans
Hello.

Average of between 0.1 and 0.5 pip spreads good enough for you???

Only one place to look: Deltastock (deltstock.co.za) (true ECN/STP with Level II Market Depth, a choice of five different Liquidty Providers to choose from, through the same platform, to obtain the best price quote, no requotes via Level II, and no slippage possible).

Any questions??? Anyone??? 'Top that'!!! LOL!!!

Oh and DO remember to check broker reviews and ratings on, say, Forex Peace Army (as but one example) before making any decisions.

Regards,...
I has a question!


How does having level 2 (market depth) mean no re-quotes?

Slippage can always be minimal with a good executing broker, but when it comes to ECN or STP access to the markets there is always the chance of slippage (on market orders at least.)
FXGears.com
  • #57
  • Feb 1, 2012 4:19pm Feb 1, 2012 4:19pm
Quoting Za3eeM
Hi,

I'm searching for a new broker too. I was using IBFX (AU) for almost 2 years but im not happy with it due the High Spread.
Try armadamarkets.com if you want to trade with MT4 and raw exchange spreads, otherwise take LMAX but they have higher commissions than Armada Markets. Spreads are the same.

Or if you trade multiple asset classes then my favorite is Interactive Brokers.

I guess it all depends.
  • #58
  • Feb 1, 2012 4:27pm Feb 1, 2012 4:27pm
Quoting Jack_Larkin
I has a question!


How does having level 2 (market depth) mean no re-quotes?

Slippage can always be minimal with a good executing broker, but when it comes to ECN or STP access to the markets there is always the chance of slippage (on market orders at least.)
Geez. That was quick!!! LOL!!! I was just off to bed and an 'Instant Email Notification' arrived.

Well having Level II in on of itself doesn't mean no re-quotes. Deltastock guarantees no re-quotes through the Level II module is all. Same thing with Market Orders through the Level II Module. Note: NO broker can guarantee no slippage when it comes to stop orders though (alright that's not STRICTLY true i.e. there are one or two brokers where you pay a premium on the trade for guaranteed stops but I'm afraid you'll have to look them up using something like Google as their names escape me at this time but I've seen them advertise on Bloomberg TV for example. That being said I've never really 'done the 'math' i.e. how much of an impact on your profits, or losses, will the cost of such guarantees have so if you do go that route then just make sure to 'do the math').

Regards,

Dale.
  • #59
  • Feb 3, 2012 10:49am Feb 3, 2012 10:49am
So i will try Pepperstone and Universal FX, today I tested Pepperstone and after NFP, there were a disconnection...
If you have other suggestions I would be happy!
  • #60
  • Feb 9, 2012 9:10am Feb 9, 2012 9:10am
Keep in mind that the servers used on demo account are not the same for REAL accounts...

Quoting ADAMdeneige
So i will try Pepperstone and Universal FX, today I tested Pepperstone and after NFP, there were a disconnection...
If you have other suggestions I would be happy!
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