What brokers do Professional traders use? Do they have any problems? | Forex Factory

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What brokers do Professional traders use? Do they have any problems?

  • #1
  • First Post: Edited 3:17pm Nov 18, 2012 6:43am | Edited 3:17pm
Hello Friends,

I am exploring to know what brokers do professional use.
However, i think ECN and DMA FX Brokers are highly important.
What brokers do professional traders use?
Do not they have any problems ?
I know many many people trade for living in Forex market, and other markets (futures, options, equities).
Do they have problems too, with like platform freezing, re-quotes, etc. etc. what a small trader happens to occur with?

Also any professional trader here, which broker you use, and pros and cons please. This will be an assistance for myself and others. Appreciated for your detail reply in advance.

Thanking and Regards,
Classical chart patterns of currencies from 15+ Year Pro Trader
  • #2
  • Nov 18, 2012 7:50am Nov 18, 2012 7:50am
This could be a useful thread.

I would be interested if there are any responses to the following concerns:

1) Non ECN brokers. Do they segment clients into successful and unsuccessful, for their own benefit?

2) Do they trade against the client until they find the client is successful? (is it just a myth that they wait until the customer blows the account and for not having passed the trades into the wider market they win for themselves)?

3) Why, with non ECN brokers, when I have seemingly had a good string of winners, am I noticing I get my orders rejected (invalid prices etc) when I put in a big leeway?

4) What protection does the client have eg in a UK FSA regulated brokerage, against the broker going bust?
Is the money segregated into a client account for safety?
  • #3
  • Nov 19, 2012 6:56am Nov 19, 2012 6:56am
Been using Trader's Way, FXCM and Alpari..and satisfied with the lot so far. On ecn/non ecn brokers, the waters a tad muddy with many brokers claiming to be ecn when they are not..and of course, a market maker will prob trade against you so if your broker is one, well your orders will get rejected.
  • #4
  • Nov 19, 2012 7:37am Nov 19, 2012 7:37am
In my opinion the best forex broker is Dukascopy, I work with them for over 5 years - very good. I work with SaxoBank, Alpari, ForexCOM, FXCM, Brocompany, Forexite, Forex4you, Fxclub... etc and from all of these I choose Alpari - the second place in my priority list.
  • #5
  • Nov 19, 2012 4:23pm Nov 19, 2012 4:23pm
Quoting 5556085
In my opinion the best forex broker is Dukascopy, I work with them for over 5 years - very good. I work with SaxoBank, Alpari, ForexCOM, FXCM, Brocompany, Forexite, Forex4you, Fxclub... etc and from all of these I choose Alpari - the second place in my priority list.
Have not tried out brocompany..any specs? what sort of accounts to they offer and regulated or not? Hope you can get back to me on this and thanks in adv.
  • #6
  • Nov 19, 2012 4:29pm Nov 19, 2012 4:29pm
Quoting Forexnuts
Have not tried out brocompany..any specs? what sort of accounts to they offer and regulated or not? Hope you can get back to me on this and thanks in adv.
You're kidding, right? :/
http://www.forexpeacearmy.com/forex-...wont-back.html
http://forexmagnates.com/broco-officially-blows-up/
Fuck Forex Factory.Wake up people.
  • #7
  • Nov 19, 2012 10:47pm Nov 19, 2012 10:47pm
Cant really go wrong with IB
  • #8
  • Nov 21, 2012 12:09pm Nov 21, 2012 12:09pm
Quoting ramy3
You're kidding, right? :/
http://www.forexpeacearmy.com/forex-...wont-back.html
http://forexmagnates.com/broco-officially-blows-up/
Damn, too obvious, huh?
Wonder if these so called one-in-a million donuts ever make it big..
  • #9
  • Nov 23, 2012 11:45am Nov 23, 2012 11:45am
Any one using Currenex for there trading ?
How is the platform in live conditions, Does it gets stuck..

Any professional trader, would like to hear from you, about your experiences please. Thx.
Classical chart patterns of currencies from 15+ Year Pro Trader
  • #10
  • Nov 23, 2012 11:57am Nov 23, 2012 11:57am
Quoting wiseambition
This could be a useful thread.

I would be interested if there are any responses to the following concerns:

blablabla
quick answer > non-ECN ,they got money from losing trades (ur trade),so practically they will touch ur SL to get ur money , ECN they got money from commission , still dont understand? rip
  • #11
  • Edited 2:13pm Nov 23, 2012 1:57pm | Edited 2:13pm
Quoting SEDR Corp.
quick answer > non-ECN ,they got money from losing trades (ur trade),so practically they will touch ur SL to get ur money , ECN they got money from commission , still dont understand? rip
Your Logic is Wrong..
Ofcourse a company would need to make money through some way.
Some are greedy companies, they want to make money through Spread, and Offsetting position in there book..
And some they just give the same spreads from various banks, they pay commission in Wholesale to the Bank.. and charge a retail commission to clients depending on volume. Which i think is Fair.

Again any professionals here, would appreciate if someone can answer my prior question please.
Classical chart patterns of currencies from 15+ Year Pro Trader
  • #12
  • Nov 23, 2012 2:09pm Nov 23, 2012 2:09pm
Quoting SEDR Corp.
quick answer > non-ECN ,they got money from losing trades (ur trade),so practically they will touch ur SL to get ur money , ECN they got money from commission , still dont understand? rip
No.

Execution model doesn't dictate how the broker makes revenue.

Non-ECN, STP, MM, etc... aim to make revenue from a spread markup: ie) they pad the spread they get from their liquidity providers. Look at FXCM's NDD STP as an example, they pad on a 1 pip markup to the underlying quote they get from the banks. When you place a trade, they execute a trade with the banks at the same time and pass the risk of the position onto you, keeping the 1 pip difference in quote for themselves.

Other brokers take it a step further, and try to internalize as many orders as possible, that way they don't have an a cost basis for the trade. Say two traders both place a 1 lot order on EURUSD at the same time, one long, and one going short. The broker will match these two off, and in doing so get to capture the full spread without having to execute an order with a liquidity provider. (This is a basic example, what often happens is the net positions across all traders is calculated and offsetting orders are sent to LPs to manage any market risk an imbalance in orders would create.)

ECN / DMA / etc... they just take the raw quote spreads from their LPs/Banks and pass it on to the client. Instead opting to charge a commission for the trade on the side. Often, the spread plus commission isn't far from what the more competitive STP/Non-ECN brokers in terms of total cost. It's just a different way of presenting the quotes, and in some cases a different way of executing them.

Hope that helps you understand.
FXGears.com
  • #13
  • Jun 23, 2013 8:37am Jun 23, 2013 8:37am
The minimum amount is about 500K USD to open an account with a bank and proper prices
most FX brokers are just there to take your money... and no service.
  • #14
  • Jun 23, 2013 9:29pm Jun 23, 2013 9:29pm
Quoting systematicfx
The minimum amount is about 500K USD to open an account with a bank and proper prices most FX brokers are just there to take your money... and no service.
What exactly are proper prices ?

Brokers get bank prices and aggregate.. why would you rely on one liquidity provider when you can have 15 ?

Banks use brokers to execute...

Brokers are giving access to institutional clients via prime brokers or placed margin.
  • #15
  • Jun 25, 2013 2:42pm Jun 25, 2013 2:42pm
Brokers get bank price but the price is not the same as their own platform.
With 10/15 banks providing some kind of liquidity they are getting around choice to 0.4 pips spread...
Is it passed to the retail trader... not really....
What is now the best spread from the like of FXCM (as mentioned on the previous conversation)...
1.0 to 1.8 pips.

Don't you think it s far too much?
when I get about choice to 0.3 tics spread most of the day ( EUR/USD we are talking about as an example).

If you go via prime broker it s still more interesting to deal with a bank.

The most disturbing thing about Brokers is the way they are executing the orders or deals.
You get filled at level not being seen in the market, you get spreads increasing drastically when the volatility increase etc....
you get margin increase on a Friday evening for no reason which stop you out... etc......
  • #16
  • Jun 25, 2013 8:04pm Jun 25, 2013 8:04pm
Quoting systematicfx
Brokers get bank price but the price is not the same as their own platform. With 10/15 banks providing some kind of liquidity they are getting around choice to 0.4 pips spread... Is it passed to the retail trader... not really.... What is now the best spread from the like of FXCM (as mentioned on the previous conversation)... 1.0 to 1.8 pips. Don't you think it s far too much? when I get about choice to 0.3 tics spread most of the day ( EUR/USD we are talking about as an example). If you go via prime broker it s still more interesting to deal with...
We are talking about institutional clients here so 0.5 isnt uncommon for them via brokers.

Prime brokers will charge you a fee per trade and limit your leverage. probably 5% = 20:1

What do banks offer on leverage compared to brokers ? A lot less hence thats why brokers are in business

Quality brokers just have an STP model or DMA directly through to the liquidity providers so the pricing reflects the market conditions.

Friday evening obviously the market liquidity is thinning as banks try and scale down their risk they widen prices.

Margin increase on friday? Is that stated in the PDS ? If not i would give that broker a wide berth.

Relying on one bank for prices is suicide at the professional level.

The banks themselves have multiple outs - you should too.
  • #17
  • Jun 26, 2013 12:53am Jun 26, 2013 12:53am
Am sure the professional traders would give more attention to the regulational aspects of the broker.
  • #18
  • Jun 26, 2013 8:56am Jun 26, 2013 8:56am
i find ATC and Interactive have been very popular with big time traders. i'm not a big time trader or anything so don't take my word for it, but i'm seeing traders with managed accounts and trading with great capital generally referring to these two. O.o
  • #19
  • Jun 26, 2013 9:58am Jun 26, 2013 9:58am
Quoting aviz12
Hello Friends, I am exploring to know what brokers do professional use. However, i think ECN and DMA FX Brokers are highly important. What brokers do professional traders use? Do not they have any problems ?
Do you consider this group of traders as "professionals"? Looking at the size of accounts they managed. They use InteractiveBrokers.
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No longer trading forex. Looking for full time job.
  • #20
  • Jun 28, 2013 6:43am Jun 28, 2013 6:43am
Quoting mmaker
{quote} Do you consider this group of traders as "professionals"? Looking at the size of accounts they managed. They use InteractiveBrokers. {image}
I've seen hundreds of hedge fund offering documents and not one hedge fund trades with InteractiveBrokers.
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