Who is the best ECN Broker for large deposits & volumes | Forex Factory

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Who is the best ECN Broker for large deposits & volumes

  • #1
  • First Post: Edited Feb 14, 2014 2:57pm May 12, 2013 11:51am | Edited Feb 14, 2014 2:57pm
Hi,

I am looking for any recommendations on who are the best ECN brokers. I would like to avoid the brokers that appear to have the usual problems with slippages, trading against my positions, etc. I have also been told the larger the deposit of the client, the closer the broker will be to a true ECN model.

Any recommendations?
  • #2
  • May 12, 2013 2:58pm May 12, 2013 2:58pm
Hi NJR,

I have had accounts with about 15 brokers in past 7 years, brand names for most.
Also, I worked in dealing desks of 3 of them so I will give you which input I can.
ECN is not a real network where YOUR money would go through, it is a price feed that your broker would quote you at.

NOW, that does not mean you will get the same levels of executions with each ECN broker, let's run this further down to align with your reality of actual trading.

Let's say that 3 major brokers will give you ECN trading environment, great, but when you will open a $800,000+ size trade, any not suicidal broker will adjust his exposure.. what if you hit a 40K profit move in few days? and your broker was not protected? THAT IS WHY YOUR BROKER NEEDS A GOOD TRADING ENVIRONMENT OF HIS OWN. You understand me? Your ability to open up a trade effortlessly relies on your broker's ability to allow you so, in accordance to his own exposure-protection mechanism. There is a safe way to work with grande account which I can guide you, it is not about choosing a broker as much as about finalizing with your terms (with chief dealer), most brokers, to win a large account and your business, would allow you to consult with their Chief dealer who should know best what he can deliver with confidence and what he can deliver with less confidence, you can set with the desk that every time you set a LIMIT/STOP orders (not market), trading desk would be ready to execute you (and themselves) with say a 10 minutes notice. For your trading impulses on fast moving market rates, trading big money is likely to result in very disappointing executions either way, but why would you want to shoot from your heaps?


Regardless I know which broker you should hit up give me a shot if interested.

David
Redeeming my life one trade at a time
  • #3
  • May 12, 2013 3:32pm May 12, 2013 3:32pm
Why not go with Dukas at least they would give you a bank guarantee but you would need another 50K.
  • #4
  • May 12, 2013 3:35pm May 12, 2013 3:35pm
Quoting davital
Regardless I know which broker you should hit up give me a shot if interested. David
Is it a secret which broker to hit up? Maybe care to share on the forum.
  • #5
  • May 12, 2013 8:50pm May 12, 2013 8:50pm
Quoting davital
Hi NJR, I have had accounts with about 15 brokers in past 7 years, brand names for most. Also, I worked in dealing desks of 3 of them so I will give you which input I can. ECN is not a real network where YOUR money would go through, it is a price feed that your broker would quote you at. NOW, that does not mean you will get the same levels of executions with each ECN broker, let's run this further down to align with your reality of actual trading. Let's say that 3 major brokers will give you ECN trading environment, great, but when you will open...
hi david,when u mentioned that "most brokers, to win a large account and your business",does that means that they will trade against u or simply that they want u to open a acct with them? also,which broker will recommend,since u had previous dealing desk's experiences? what criterias should we be looking out for? thanks!
  • #6
  • May 13, 2013 7:14pm May 13, 2013 7:14pm
Each broker manages his exposure differently, normally they would develop 'Client Attributes' for each client after a while, for example.. trades under 50K in size . would stay uncovered.. so you can be in n out easy, a broker wont cover himself per each trade for each client, WHY? number one it is both costly and would slow client's trading environment, number two it would limit broker's profit, have no mistake, the only way brokers make any considerable money are off your losses, not your spreads.
When a client proves himself to take good trades consistently they would add his trades to the pool of 'covered trades'.. so if a broker has ~30 designated traders of which the broker acknowledge them (from their results) that these clients KNOW what they are doing, these ~30 clients total/overall exposure would be off-set by one another, and if these 'profitable' clients are for example biased LONG EURO (their total holdings are 2.5 Mil long euro and 1 Mil short euro), the broker will cover himself for 1.5 long Euros with shorts.. you get the idea?
I would talk to Gain Capital (Forex.com), they offer tight spreads, they have lots of in-house liquidity, but you will be looking at ~1:10 to ~1:20 leverage because they are NFA approved.. also I recommend FXPro cause they are real pros about their trading environment/executions, they can give you the crazy 1:100 leverage but their spreads are bigger on exotic crosses
Also, I would look at NZDCHF going short from levels now, risking a tight ~100 ticks SL
Also, I would look for currencies to continue being choppy till early June where they will re-align.. there are pressures building up, a strategy that can work these days would be ~0.4 price moves (40 ticks on 1.000 pairs, 60 ticks on 1.5000 pairs) where you do modest risk:rewards of 1:1.3 (e.g risk 30, profit 40) on days where you anticipate some action (hint: after few slow days).. for example, say GBPCAD is performing <0.8% changes for few days.. you 'Know' there will come a day of +1.2% so you can bet on that by placing STOP orders on the edges highs n lows etc.. i would not take a strategic approach now because the currency market is yet to decide who will be the coming winners n losers this summer.. if anything i will put 'seed' trades where prices are oversold/bought with hopes that they will prove good few weeks onward, where i would build additional margins on these seeds
Redeeming my life one trade at a time
  • #7
  • May 13, 2013 11:29pm May 13, 2013 11:29pm
Quoting davital
Each broker manages his exposure differently, normally they would develop 'Client Attributes' for each client after a while, for example.. trades under 50K in size . would stay uncovered.. so you can be in n out easy, a broker wont cover himself per each trade for each client, WHY? number one it is both costly and would slow client's trading environment, number two it would limit broker's profit, have no mistake, the only way brokers make any considerable money are off your losses, not your spreads. When a client proves himself to take good trades...
what abt in a ECN broker scenario? are our trades really passed on to the markets/banks,as those ECN-based brokers claimed? thanks!
  • #8
  • May 13, 2013 11:33pm May 13, 2013 11:33pm
Quoting davital
Each broker manages his exposure differently, normally they would develop 'Client Attributes' for each client after a while, for example.. trades under 50K in size . would stay uncovered.. so you can be in n out easy, a broker wont cover himself per each trade for each client, WHY? number one it is both costly and would slow client's trading environment, number two it would limit broker's profit, have no mistake, the only way brokers make any considerable money are off your losses, not your spreads. When a client proves himself to take good trades...
Thanks for these absolute gems, mate!
The road to pipland is arduous and fraught with challenge.
  • #9
  • May 14, 2013 6:10am May 14, 2013 6:10am
Quoting davital
Each broker manages his exposure differently, normally they would develop 'Client Attributes' for each client after a while, for example.. trades under 50K in size . would stay uncovered.. so you can be in n out easy, a broker wont cover himself per each trade for each client, WHY? number one it is both costly and would slow client's trading environment, number two it would limit broker's profit, have no mistake, the only way brokers make any considerable money are off your losses, not your spreads. When a client proves himself to take good trades...
You have been with 15 different brokers within 7 years and you recommend FXPro and Gain Capital, interesting to say the least. I have had the same broker for the past 4 years with no complaints thus far.
  • #10
  • May 14, 2013 11:40am May 14, 2013 11:40am
As rule of thumb, if I get to have an account size over 20,000 i go to the CBOE market (through broker such as AMP futures I worked with in the past). This would be as 'pure' market conditions as you can get, price is never guarenteed but the execution is quicker in normal conditions.. and with some minimal slippage in fast conditions (and still fast). Just mentioning it is also an option, plus.. you get more interesting assets to trades from the family of bonds/tbills/more commodities and the spreads are usually HALF ..the road is looong
Redeeming my life one trade at a time
  • #11
  • May 14, 2013 12:14pm May 14, 2013 12:14pm
Hi,

Thanks for the replies.

Mitch77 - I have actually checked out Dukascopy and am I leaning towards using them as my broker. I have read reasonable things about them and how their liquidity model works and that they are 'supposedly' as close as a pure ECN that there is. Before signing with them I was keen on doing a little more research and finding out any issues / items of concern (excessive slippage, etc, etc) that I should know before signing their documentation. If you don't mind me asking, who is your broker?

@ Davital - thanks for the information on how the various brokers hedge their risk on small and large trades. Good to know their strategy here. I'll have a look at the others but do they offer an ECN service. My rational for going with an ECN is that I've read / been told that they are less inclined to play against the small independent traders given that their liquidity model is set up differently. Any other pointers would be greatly appreciated...
  • #12
  • May 14, 2013 1:09pm May 14, 2013 1:09pm
@njr- I have 2 brokers that I use, ATC and Lmax. I have had an account with ATC for over 4 years now and I have n't had any issues that I can think of. If you look at FPA broker reviews they have by far the best reviews of any major broker but I guess don't read to much into reviews. Only had an account with Lmax a few months but like ATC no complaints thus far, good spreads and minimal slippage.
  • #13
  • May 15, 2013 12:39am May 15, 2013 12:39am
Thanks Mitch77 - I appreciate your advice and will certainly check them out....
  • #14
  • May 15, 2013 1:06am May 15, 2013 1:06am
Last time I checked, Dukas had horrible swap rates.

http://www.dukascopy.com/swiss/engli...nts/overnight/

I am currently trading sums as yours and using MB Trading

http://i.imgur.com/peUXEYj.png

FX Pro? What? They have been a bucket shop before introducing ECN, would never trust this kind of institution. As for AMP Futures, I don't even see their contact info. What are you guys recommending? I am blown away.
"Everyone gets what they want out of the market." -- Ed Seykota
  • #15
  • May 15, 2013 1:03pm May 15, 2013 1:03pm
Thanks V4X. Can I ask who your broker is given that you are trading the similar volumes to myself? PM me if you prefer....
  • #16
  • May 15, 2013 11:30pm May 15, 2013 11:30pm
ducascopy is good, but you can also consider some liquidity provider such as CFH Markets, Boston Prime
I have a good experiences on CFH for more than 2 years.

Quoting njr
Thanks V4X. Can I ask who your broker is given that you are trading the similar volumes to myself? PM me if you prefer....
Money never sleeps
  • #17
  • May 23, 2013 8:39am May 23, 2013 8:39am
Quoting njr
Thanks V4X. Can I ask who your broker is given that you are trading the similar volumes to myself? PM me if you prefer....
He said MB Trading, and I would agree especially compared to some of the crazy other options being floated on this thread.
  • #18
  • May 24, 2013 9:15am May 24, 2013 9:15am
Well the best ECN broker i have come across so far is fxopen-ECN which is good according to me. The others which i used was hotforex with good tight spreads.
  • #19
  • May 24, 2013 2:43pm May 24, 2013 2:43pm
Hi all,

Many thanks for the responses. Good to get the different views and recommendations. I have decided to go with dukas. I like their liquidity model and they seem to be offering the best spreads for the ENC players. There interface is also pretty good although one point is that you can't see the full P/L of the open positions as it doesn't include the commission. It is possible to see the commission on a trade but only after executed. The other option is to fully calculate the commission which is dependent on a number of factors...

Overall I found they were the pick of the lot...
  • #20
  • May 29, 2013 5:40am May 29, 2013 5:40am
Quoting njr
Hi, I am looking for any recommendations on who are the best ECN brokers to use for large deposits and large volume trading. I have around 200,000 USD and general trade in large volumes (greater than 1 million on the majors). I would like to avoid the brokers that appear to have the usual problems with slippages, trading against my positions, etc. I have also been told the larger the deposit of the client, the closer the broker will be to a true ECN model. Any recommendations?
I'm sure many brokers have a lot to offer. My broker FXPRIMUS for example offers ECN accounts for large account holders (not me but I do know some of the traders with FXPRIMUS here in my country are large account holders. The most important thing is you could utilize the FXPRIMUS Trust account option to ensure your deposit is 100% safe and secure from any of the broker's liabilities. You can check the link her for more info: http://www.fxprimus.com/fund-safety/...Account_option

I'm pretty sure FXPRIMUS can support large trade volume. You can basically just contact them via email at [email protected] if you're interested in placing trade larger than 50.00 lots per click (I think). Just check with them.
FXPRIMUS trader
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