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What are we all looking for from a Broker

  • #21
  • Sep 18, 2013 1:45pm Sep 18, 2013 1:45pm
Also tradethefx, what do you mean by "STP/ECN execution for everyone. I don't like the Market Making model and especially the dealing desk"? I am so confused by this statement because my understanding is that STP/ECN execution is just my broker passing my trades to a 3rd party dealing desk? Am I incorrect about that? Please explain if you could. Thanks.
  • #22
  • Sep 19, 2013 7:40am Sep 19, 2013 7:40am
Hi mchen,

In general lines your confusion is understandable. The difference is that STP Brokers act as agents between Prime Brokers (for example Morgan and Stanley) and their traders. I personally believe that the most explanatory example is provided by FxPro (http://www.fxpro.co.uk/trading).
Now I have to admit that I am doing the same thing as you. My investment is divided between five different brokers because I wish to diversify my risks but because I couldn't find any Broker that offers the conditions that we all mentioned in this thread.
  • #23
  • Sep 20, 2013 2:11am Sep 20, 2013 2:11am
yup i guess dividing a big investment among a couple of good brokers is not such a bad idea, looking for what we call IDEAL can be a bit difficult given that there is always cons and pros in each and every broker, some are worst/better that others, but i guess bottom line is we keep on searching and make the best of what we have infornt of us, I only use one broker and my investment is not that big anyway. best of luck
  • #24
  • Sep 24, 2013 9:39am Sep 24, 2013 9:39am
I keep on searching around the internet but none seems to offer our conditions. I cannot even find a Broker that meets 2/3 of what we ask for. The FX industry is too competitive and brokers should pay attention on traders' needs. I didn't see a Broker replying back to this thread either.
  • #25
  • Sep 24, 2013 9:50am Sep 24, 2013 9:50am
I think fxopen meets most of the conditions stated above.
  • #26
  • Sep 25, 2013 3:42am Sep 25, 2013 3:42am
Quoting tradethefx
Hello fellow traders. The time has come to open our thoughts and send a clear message to all Brokers on what we are really looking for. Through this thread I shall point out the things that I am looking from a Broker and you are all welcome to add additional points on my list. Regulated Broker Tight spreads without any deposit or volume requirements STP/ECN execution for everyone. I don't like the Market Making model and especially the dealing desk Fast execution for all the trades. Any delay will be considered that there is a dealing desk intervention...

My lists go like this:

1. Trading restrictions/ Broker model
2. strategy restriction- base on no1
3. trading conditions
4. regulation/secutity
5. bonus/reward

fisrt 4 should be on list of any trader. I agree that there is no one "perfect broker" you must match your trading to broker
  • #27
  • Sep 25, 2013 4:13am Sep 25, 2013 4:13am
hi web8701,

Fully agree with your post. However, I will keep on searching. I have a list of 140 regulated brokers that I go through and when i come to a conclusion I shall post it on this thread.
  • #28
  • Sep 25, 2013 4:16am Sep 25, 2013 4:16am
tradethefx - maybe we will get your answer in 4 year
  • #29
  • Sep 25, 2013 12:17pm Sep 25, 2013 12:17pm
OK, then the STP broker is a middle man, passing the trades to a PB to fill them on their dealing desk. Right? Why not go direct with the PB then? I guarantee they are not doing that pass through for free! Thanks for your feedback tradethefx.
  • #30
  • Sep 26, 2013 1:32am Sep 26, 2013 1:32am
Quoting mchen
Why not go direct with the PB then?
I guess coz PB works with only big deposits.
  • #31
  • Edited Sep 29, 2013 12:52pm Sep 28, 2013 3:03pm | Edited Sep 29, 2013 12:52pm
http://www.smh.com.au/business/forex...927-2ujo8.html
http://forexmagnates.com/gtl-tradeup...up-down-under/
http://gtltradedown.wordpress.com/20...ion-announced/

This ASIC-regulated broker just announced they are bankrupt, and supposedly all client monies are lost. I don't see anything in the broker selection criteria that can prevent this.

"The Australian Securities and Investments Commission on Friday said it was aware of the matter but no official document had been lodged. An ASIC spokesman said it was ''still waiting on confirmation of an appointed liquidator''."

Quoting pemully
{quote} lets see whether the ASIC is as efficient as the FSA in reimbursing clients lost money. Seems UK is the safest place for spot fx
Those interested to know if the clients got back their money or not, can follow along the WordPress blog (set up by affected clients) and in a way assess ASIC's involvement or ability to assist the recovery of funds.
Attached Image (click to enlarge)
Click to Enlarge Name: 6.png Size: 21 KB
No longer trading forex. Looking for full time job.
  • #32
  • Sep 29, 2013 3:12am Sep 29, 2013 3:12am
Quoting mmaker
http://www.smh.com.au/business/forex...927-2ujo8.html http://forexmagnates.com/gtl-tradeup...up-down-under/ http://gtltradedown.wordpress.com/20...ion-announced/ This ASIC-regulated broker just announced they are bankrupt, and supposedly all client monies are lost. I don't see anything in the broker selection criteria that can prevent this. "The Australian Securities and Investments Commission on Friday said it was aware of the matter...

lets see whether the ASIC is as efficient as the FSA in reimbursing clients lost money. Seems UK is the safest place for spot fx
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!
  • #33
  • Sep 30, 2013 2:52am Sep 30, 2013 2:52am
I would like to add one more point to your point list .I would also look out whether my broker is providing me continues connectivity or not.It would be worst thing if I command any thing and the "Provider is busy" message comes.I am mentioning this from my personal experience.Imagine,you have found your profit,you want to close the transaction,you command for it and....Sheeaat....message comes that "server is busy!!!!. Luckily...I got my connectivity very soon other wise my profit may have been resulted in a loss,doesn't matter the loss was small or big!
  • #34
  • Oct 9, 2013 2:11am Oct 9, 2013 2:11am
Quoting mehulsoni
I would like to add one more point to your point list .I would also look out whether my broker is providing me continues connectivity or not.It would be worst thing if I command any thing and the "Provider is busy" message comes.I am mentioning this from my personal experience.Imagine,you have found your profit,you want to close the transaction,you command for it and....Sheeaat....message comes that "server is busy!!!!. Luckily...I got my connectivity very soon other wise my profit may have been resulted in a loss,doesn't matter the loss was...
If you receive such a message then you are dealing with a Market Maker. Remember, Market Makers profit from their losses or from hedging the positions between their clients. For example if you went short EUR/USD 1 lot and another client at the same time went long 1 lot EUR/USD then they profit the spread only. However, if there was no any matching with another client then your position remained is not covered and as such, your profit is your Broker's loss. The dealing room of your broker will try its best to avoid the loss from your trade.
  • #35
  • Oct 10, 2013 3:11am Oct 10, 2013 3:11am
Quoting tradethefx
{quote} If you receive such a message then you are dealing with a Market Maker. Remember, Market Makers profit from their losses or from hedging the positions between their clients. For example if you went short EUR/USD 1 lot and another client at the same time went long 1 lot EUR/USD then they profit the spread only. However, if there was no any matching with another client then your position remained is not covered and as such, your profit is your Broker's loss. The dealing room of your broker will try its best to avoid the loss from your trade....


Hi,tradethefx.
Very Thanks for your quote....It is really very useful.
  • #36
  • Oct 11, 2013 11:04am Oct 11, 2013 11:04am
Quoting tradethefx
Fast execution for all the trades. Any delay will be considered that there is a dealing desk intervention
I'll have my cake and eat it too
  • #37
  • Nov 29, 2013 4:17am Nov 29, 2013 4:17am
Trust me I want the cake and to eat too

I did a small research for STP/ECN accounts to see who offers the conditions we look for and I have attached the findings.

Unfortunately, i did not find a broker that covers all required points/requests.
Nevertheless, I found 25 Forex Brokers that they have a true STP/ECN model and I believe that there conditions are pretty much close to what we look for.
Surprisingly, the lowest advertised spread they have is close to 0.8 pip or $8-$7 per $100k. This means that they all copy each other or they all use the same liquidity provider.

From the list I believe you can find many of those Brokers that have a relatively small deposit requirement.
Please guys, for anyone who wishes to edit the excel sheet, please feel free to upload it in this forum so we can have a look too.
Attached File(s)
File Type: xlsx Forex Broker Comparison M - Copy.xlsx   10 KB | 447 downloads
  • #38
  • Nov 29, 2013 3:05pm Nov 29, 2013 3:05pm
Quoting tradethefx
{quote} I wouldn't say that. Let's use an example. Let's assume that your Broker is making close to 100 billion in USD volume trading per month. This means that with a half a pip mark up or $5 commission per round turn the trading profit is close to 5 million USD per month rounded. Look at all those brokers who work with cashbackforex. I believe that all of them are having trading profits from the clients who were referred to them by cashback. I believe that my thread also answers Kanzler's reply.
Liquidity isn't free. So whilst in a perfect world your math is correct. Most brokers are paying 10$+ per million on liquidity.
  • #39
  • Dec 4, 2013 1:47am Dec 4, 2013 1:47am
Hi Takisd,

I agree that most of the brokers pay a certain fee for liquidity however, I don't believe that they pay pay $10+ per million.
For example, FXTM offers an account that charges only $20 to $5 per million. If they pay for the liquidity $10 per million then they do not profit from the clients on those accounts.
You can argue of course that they can manipulate the spreads and they don't show to their clients the true spreads they received from their liquidity providers. Or, you can say that they probably don't cover their clients trades.

For tradingboy, I believe that you have provided us only with the companies that offer ECN/STP conditions in a relatively small deposit requirement.
Maybe we need to contact those brokers and ask them if they can offer those conditions to all their clients.
  • #40
  • Dec 4, 2013 3:35am Dec 4, 2013 3:35am
A good broker is what everyone is looking for which will help us find the right home, help us by negotiating the best possible price and terms for us, and help us with the inspections and paperwork to and through settlement.
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