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Brokers and slippages

  • #1
  • First Post: Oct 14, 2015 6:40am Oct 14, 2015 6:40am
Hi all,

I have a scalping system that trades the EURUSD but I am suffering from slippages because I try to capture fast movements AND I trade big sizes.

I am with an ECN broker (IC Markets), and when trading 10+ lots, I get slipped on average -0.9 pips PER TRADE which is simply unacceptable. It is already set up with one of the fastest VPS.

Anyone has any ideas how to solve this issue?

1. Trade with a market maker? Would fast execution and slippages be an issue here?
2. Diversify funds with other ECN brokers in hopes that they use different liquidity providers?
3. Any other ideas please?
  • #2
  • Oct 14, 2015 7:03pm Oct 14, 2015 7:03pm
There are certain ways to avoid slippage.

1. Use limit orders
2. Use CTrader instead of MT4 (i saw icmarkets have it available)
3. Use different broker if you use ECN or Marketmaker makes a difference, i dont know, i heard good about Oanda. They have good liquidity for orders >10 Lots.
  • #3
  • Oct 15, 2015 3:45am Oct 15, 2015 3:45am
My experience I see brokers either give you slippage or slow execution. IG Mt4 is quick but give you a bit of slippage, Activtrades has high spread up to 2 pips on EUR USD but very quick and low slippage, PhillipCapital UK has up to 0.8 but goes down to 0.4 as well and low slippage but execution not too quick. I would try all them and see which one is best for your trading
  • #4
  • Oct 15, 2015 10:40am Oct 15, 2015 10:40am
I don't have much experience with cTrader, but from what I'm seeing so far it's better than MT4, as the broker can't change things around so much. I've seen less slippage in the last couple of months since I started using it.
  • #5
  • Oct 15, 2015 11:15am Oct 15, 2015 11:15am
Quoting genie
1. Trade with a market maker?

That's something you need to avoid, for scalping.

A genuine broker has no problem with your scalping the market, because it doesn't cost them anything; but if you try to use a counterparty market-maker, you'll be scalping them, not the market. How long will they tolerate that for, if you're profitable?
  • #6
  • Oct 15, 2015 11:44am Oct 15, 2015 11:44am
1. What Xela said.

Quoting genie
It is already set up with one of the fastest VPS.
2. How do you define fast? Get a VPS in the same datacenter as your brokers server, everything else is wasted potential.

Edit: do you trade manually? A VPS will only help you if you're trading automatically (EA) otherwise it'll probably make your problem worse.
  • #7
  • Oct 16, 2015 9:23am Oct 16, 2015 9:23am
Quoting Xela
{quote} That's something you need to avoid, for scalping. A genuine broker has no problem with your scalping the market, because it doesn't cost them anything; but if you try to use a counterparty market-maker, you'll be scalping them, not the market. How long will they tolerate that for, if you're profitable?
I use IG Index for spreadbetting. Would you consider them to be a genuine broker or not?
  • #8
  • Edited 10:33am Oct 16, 2015 10:13am | Edited 10:33am
Quoting bobbles
I use IG Index for spreadbetting. Would you consider them to be a genuine broker or not?

They're not a "broker" at all, and they don't claim to be.

They're certainly a genuine and well regulated spreadbetting firm, though.

I see that there are widespread differing opinions of them to be found online, as is inevitably the case with spreadbetting firms. I find most of the "information" online about spreadbetting is a mixture of out-of-date, ill-informed and downright prejudiced, and personally I give none of it much credence.

I've never used IG, myself. Personally, I wouldn't be worried about their honesty or about the security of my funds there, but I do know a couple of people who have had accounts closed down for no perceived/disclosed reason other than "winning too much, too regularly".

I use CapitalSpreads for some of my own trading, and I believe they're probably better over that hugely important issue than the other London spreadbetting firms, and perhaps especially with customers they know pretty well. They trust me not to scalp them and I trust them not to close my account: so far, at least, neither of us has been disappointed. I believe that they're probably particularly efficient at offsetting their own net liabilities in the underlying market and therefore they "oughtn't" to care how much and how regularly any individual client wins (though real scalping would presumably be an exception to that, for obvious reasons).

But I can't comment from my own experience on how good/bad IG are, about that.
  • #9
  • Oct 16, 2015 10:43am Oct 16, 2015 10:43am
genie, can i know are you using EA to trade or manually trade?
  • #10
  • Oct 16, 2015 11:00am Oct 16, 2015 11:00am
Quoting Xela
{quote} They're not a "broker" at all, and they don't claim to be. They're certainly a genuine and well regulated spreadbetting firm, though. I see that there are widespread differing opinions of them to be found online, as is inevitably the case with spreadbetting firms. I find most of the "information" online about spreadbetting is a mixture of out-of-date, ill-informed and downright prejudiced, and personally I give none of it much credence. I've never used IG, myself. Personally, I wouldn't be worried about their honesty or about the security...
Thank you for your answer, Xela.
  • #11
  • Oct 16, 2015 3:59pm Oct 16, 2015 3:59pm
Quoting warbee
genie, can i know are you using EA to trade or manually trade?
EA
  • #12
  • Oct 16, 2015 9:36pm Oct 16, 2015 9:36pm
Quoting genie
Hi all, I have a scalping system that trades the EURUSD but I am suffering from slippages because I try to capture fast movements AND I trade big sizes. I am with an ECN broker (IC Markets), and when trading 10+ lots, I get slipped on average -0.9 pips PER TRADE which is simply unacceptable. It is already set up with one of the fastest VPS. Anyone has any ideas how to solve this issue? 1. Trade with a market maker? Would fast execution and slippages be an issue here? 2. Diversify funds with other ECN brokers in hopes that they use different liquidity...
Quoting h96
Use CTrader instead of MT4 (i saw icmarkets have it available).
Agreed. I use cTrader as well. Here's a thread that might interest the OP: Exposing MT4 Scams - Brokers Plugin!
  • #13
  • Oct 17, 2015 3:57pm Oct 17, 2015 3:57pm
Honestly i feel cTrader is one of best option to get rid of all these issues since at least by that we know that the slippage will be removed but the sad part is not all brokers offer this.
  • #14
  • Oct 22, 2015 2:53am Oct 22, 2015 2:53am
Quoting Xela
{quote} They're not a "broker" at all, and they don't claim to be. They're certainly a genuine and well regulated spreadbetting firm, though. I see that there are widespread differing opinions of them to be found online, as is inevitably the case with spreadbetting firms. I find most of the "information" online about spreadbetting is a mixture of out-of-date, ill-informed and downright prejudiced, and personally I give none of it much credence. I've never used IG, myself. Personally, I wouldn't be worried about their honesty or about the security...
Do you use them for trading Dax with EA? or for FX as i currently see on their website that they have high soreads on fx, 1 point on EURUSD and 2 points on GBPUSD
  • #15
  • Last Post: Oct 22, 2015 9:06am Oct 22, 2015 9:06am
Can anyone dig up a list of brokers using cTrader, can't seem to find it..
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