Broker's Feed Manipulation???

Quoting pips

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Well I've just closed my accounts with ACM and just opened accounts with Saxo Bank and CBFX .No particular reason other than I don't trust any brokers anymore and feel better going through a bank that display the interbank spread as they receive it.Stop hunting ,brokers trading against you and price manipulation are hopefully things I do not have to worry about anymore .I just want to trade on an as level playing field as possible.

Regards

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Quoting Hayek

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Anybody consider Hotspot Fx or Coesfx? They have ECNs and do not trade against their clients. At least two 'big' dealers trading in either of their platforms. They do not promise to give 'best price', but under such mechanism (2 dealers compete to quote) I think their platforms can give 'better price' than those platforms in which only one dealer quotes you.

When there are only one dealer quoting you, I don't think it will always give you a fair price you want, no matter it is a retail fx dealer or a bank. It may give you 'best price' for some time when you are a new comer. After you earn some money, I believe things will change.

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Quoting jambotrader

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Hotspot: You get to put in your own bid/offers (that can be filled by other clients at hotspot) or you can do regular double click dealing on bid/offer. Trades are done instantaneously and only occasionally do prices move so fast that a bid/offer is created in the market. For euro spreads tend to be 2 pips sometimes 1 but never more than 3 for long. Commission is $3 per 100k deal.

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Quoting jambotrader

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I have an account with them so my views are based on the real thing. Like I said, it's very rare to get a double click order thrown to a bid/offer. A good feature is that you can put your own orders inside the spread so even if on the odd occasion when there is a problem you can deal with the other clients. I had to do this myself once and it's just a question of checking other providers quotes and adding a small discount/premium of a pip or two if you want to get filled immediately. So even if spreads are large (which they rarely are) there's no problem really.
I use an options system for trading news and don't use normal fx for the immediate after news reaction so I don't know about saying double clicking on nfp, but even then there's normally going to be a gap of 50 points or so which nobody can get at so it might be unrealistic to expect to get those points.

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Quoting Hayek

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Yes. I know you trade news by spread bet. Do you trade spread bet in IG? I have not deeply investigated IG's website, but I suppose IG only accepts orders by phone instead of providing on-line trading platform to their clients. Is it possible to successfully get in touch with IG by phone right before news release to make a bet?

I mainly trade news. After almost all retail fx dealers cancel stop-guaranteed ads, I seldom trade such big US news like monthly nfp. Dealers' new policy makes those big US news trades less profitable and much riskier than before. I turn to focus on some small news. However, dealers don't give me a chance to trade small news. My dealer CMS, even always turns down their server before 8:30GMT in order not to let traders trade UK news.

So I am considering Hotspot Fx and Coesfx. Since Hotspot doesn't have 'stop entry order', I really would like to test placing market order in its platform in the first second after I see what the news is. Whether or not a market order will be accepted by Hotspot in a fast makert is the key factor if I choose this method, you may easily understand that.

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Quoting jambotrader

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IG has an online platform which I prefer to use to the phone as its much faster. I need to be able to get out quickly as by the time you hand over your details over the phone and tell them what you want to do the market might have moved a lot.
I suggest you do what I did with Hotspot. Because the demo is exactly as live just slightly delayed, with for some news that moves the market a lot and then double click on the hotspot demo as may times as you can "through" the fast market. I remember I did it about 8 times in total, that's 8 double click as fast as I could and it came through that I got all but one of them.
One way of guaranteeing a fill is by putting a bid in well above the offer or an offer in well below the bid and you will get the best price whatever happens, but you have to be sure to check the orders and make sure nobody has a sneaky order matching yours. I usually have a few order boxes ready and waiting just in case I need/want to do this.
But your problem won't be getting filled only getting the news fast enough as these are interbank prices with no fiddling and they are the fastest I have seen in reacting to news.

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Quoting Hayek

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If I place a bid above the 'offer price', I think it will be executed exactly at the 'offer price' immediately. Because Hotspot doen't embed order system in its demo platform, the above is just my guess. What is your opinion?

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Quoting jambotrader

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That's the point. It means you get the best price available at the time which means market price. All you have to check is the orders screen to make sure nobody else has a matched order. Usually there's no one outside the banks but always check. I only use this for dead cert moves when I expect 100 points or more and just want to get in as fast and as low/high as I can.

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Quoting Hayek

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Thank you, jambotrader. If I didn't get wrong information, Hotspot only has three kinds of orders, they are stop loss order, take profit order and OCO. So, can I place a bid above the 'offer price' or place an offer below the 'bid price'? I think I need 'stop entry order' to do that, but Hotspot doesn't provide that kind of order. If I place a bid above the 'offer price', I think it will be executed exactly at the 'offer price' immediately. Because Hotspot doen't embed order system in its demo platform, the above is just my guess. What is your opinion?

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Quoting blueshirt

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Hello Hayek,.

I also have an account at Hotspot and you ARE able to enter a 'stop entry order' as you call it on the live platform. The issue is that they call all sell orders below the market and buy orders placed above the market 'stop loss' orders. They don't have a different input for stop entry orders, you just enter them as stop loss orders, even though you are initiating a position. The only order you can't enter with them are contingency (if done) orders.

Cheers

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Quoting mehtabkk

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To all the seniors/experts Is trading stock indices (Dax, Dow, S&P) a better option than trading currencies? Because brokers don't trade against their clients there? Enlighten us please.

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Quoting leebsurag

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{quote} Well based on my experience stocks are less volatile than currencies, as there is higher chance to face liquidity problems especially on small-cap stocks brokers offer no more than 1:50 leverage. Capital requirement is also higher there. So its up to you what markets to choose - OTC or real exchange with additional information available like volume, etc. Regarding market making with retail forex brokers - yes in some cases it may be real issue especially when expert traders racks up good profit which market maker has to pay for their own...

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Quoting Dkam

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{quote} There is more than enough liquidity in the major stock indexes. Individual stocks is a different thing, but indexes are no problem at all. Depending on the size you want to trade of course. Then there is also the possibility to trade indexes via options or etfs.

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