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Getting Around your broker

  • #1
  • First Post: Aug 24, 2006 11:49am Aug 24, 2006 11:49am
Some brokers are great for News Trading, some are not.

News trading requires:
1. Fast execution of order - which means no slippage
2. No widenning of spreads - which means no stop hunting

It has come to our attention that ECN is becoming the norm for news trader who wants NO SLIPPAGE. But ECNs are notorious for enlarged spreads. On a simple/minor news, you could experience 20 pips spread! So thats the price for paying for no slippage - its slippage in the disguise of widened spread.

I have been trading with FXCM for 2 months now. I know it is not the best broker for news trading. However I find something that I can take advantage of them.

On other brokers (like ECNs and OANDA), you'd probably be pissed with the enlarged spreads which makes you unable to play the minor news.

Here is where our most hated broker FXCM shines. FXCM does not monitor minor news like CAD CPI, or GBP Rate Hike, or US Durable Goods. I can freely place any orders I like without fear of widen spreads. And to be a winner, I have to place the Entry orders really close to the last second price...

What are your stories with your brokers? Please share your experience on how to take their advantage.
  • #2
  • Aug 24, 2006 11:56am Aug 24, 2006 11:56am
Quoting BurgerKing
Some brokers are great for News Trading, some are not.

News trading requires:
1. Fast execution of order - which means no slippage
2. No widenning of spreads - which means no stop hunting

It has come to our attention that ECN is becoming the norm for news trader who wants NO SLIPPAGE. But ECNs are notorious for enlarged spreads. On a simple/minor news, you could experience 20 pips spread! So thats the price for paying for no slippage - its slippage in the disguise of widened spread.

I have been trading with FXCM for 2 months now. I know it is not the best broker for news trading. However I find something that I can take advantage of them.

On other brokers (like ECNs and OANDA), you'd probably be pissed with the enlarged spreads which makes you unable to play the minor news.

Here is where our most hated broker FXCM shines. FXCM does not monitor minor news like CAD CPI, or GBP Rate Hike, or US Durable Goods. I can freely place any orders I like without fear of widen spreads. And to be a winner, I have to place the Entry orders really close to the last second price...

What are your stories with your brokers? Please share your experience on how to take their advantage.
There are plenty of reasons to go with an ECN...one of the being (and I think probably THE most important thing) is being able to trade inside the spread.

So what if the spread widens? Just place your order inside the spread and be your own market maker. You may not get a fill, but in all honesty...you probably will...so why harp about the spread widening?

If your "ECN" doesn't let you trade inside the spread, then they are obviously not an ECN...
  • #3
  • Aug 24, 2006 9:44pm Aug 24, 2006 9:44pm
Good thing you pointed that you can trade within the spreads. Tell that to those traders with ECN accounts bitching about the large spreads. I wonder if people trading with OANDA can do the same???

This thread is supposed for tips getting around broker's rules. Not bitching against each other's tips.
  • #4
  • Aug 24, 2006 9:57pm Aug 24, 2006 9:57pm
I was under the impression that an ECN would have fixed spreads as well as very little slippage. Is there any ECN that fits that bill?
  • #5
  • Aug 24, 2006 10:00pm Aug 24, 2006 10:00pm
Quoting forexplayer
I was under the impression that an ECN would have fixed spreads as well as very little slippage. Is there any ECN that fits that bill?
Why would an ECN have fixed spreads? It's getting quotes directly from their bank... unlike a bucket shop that filters out the prices and quotes you what it feels like...
Mr. Trend
  • #6
  • Aug 24, 2006 10:16pm Aug 24, 2006 10:16pm
ECNs can have huge spreads and slip a lot. ECNs are brokers that you can actually work with though. You pay them a commission and they are happy. They are not going to be chasing your limits, stops etc.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #7
  • Aug 24, 2006 10:48pm Aug 24, 2006 10:48pm
Quoting BurgerKing
Good thing you pointed that you can trade within the spreads. Tell that to those traders with ECN accounts bitching about the large spreads. I wonder if people trading with OANDA can do the same???

This thread is supposed for tips getting around broker's rules. Not bitching against each other's tips.
Oanda is not an ECN. I don't think there are very many ECN's that are truly ECN's. I hear alot about them and did some reading, but I have been so satisfied with Oanda that I am not currently remotely interested in changing.
  • #8
  • Aug 24, 2006 10:58pm Aug 24, 2006 10:58pm
Quoting BurgerKing
Good thing you pointed that you can trade within the spreads. Tell that to those traders with ECN accounts bitching about the large spreads. I wonder if people trading with OANDA can do the same???

This thread is supposed for tips getting around broker's rules. Not bitching against each other's tips.
:-) I kind of like bitching about your tip...

I'm totally kidding...I see what you're doing and kudos...don't spend too much time on this, though.
  • #9
  • Aug 24, 2006 11:38pm Aug 24, 2006 11:38pm
Quoting squat1962
Oanda is not an ECN. I don't think there are very many ECN's that are truly ECN's. I hear alot about them and did some reading, but I have been so satisfied with Oanda that I am not currently remotely interested in changing.
Good to hear that you are not bitching against OANDA when they enlarge spreads during news time.

Care to share your tips with other OANDA traders?
  • #10
  • Aug 24, 2006 11:46pm Aug 24, 2006 11:46pm
Quoting BurgerKing
Good to hear that you are not bitching against OANDA when they enlarge spreads during news time.

Care to share your tips with other OANDA traders?
I actually have an Oanda account...but I definitely don't use it for news trades primarily because the only way to get into a news trade is to get in it a while before the news comes out...we're talking 5-10 minutes. Even then, exiting during the volatility without slippage is impossible.

The best thing you can do is to hedge (either 2 negatively correlated currencies on the same account or the same currency in 2 linked accounts). Then drop the loser when the news trade comes out and let the other pair ride).
  • #11
  • Aug 25, 2006 3:48am Aug 25, 2006 3:48am
Here is where our most hated broker FXCM shines. FXCM does not monitor minor news like CAD CPI, or GBP Rate Hike, or US Durable Goods. I can freely place any orders I like without fear of widen spreads. And to be a winner, I have to place the Entry orders really close to the last second price...



I traded with fxcm for two months and it worked well, the only problem is that after two months they have set me to manual status and every order that I entered was to be approved and it was impossible to have executed any order during news so I closed my account.
So FXCM is good for the first months then you have to change.
  • #12
  • Aug 25, 2006 3:56am Aug 25, 2006 3:56am
Quoting alpignolo
I traded with fxcm for two months and it worked well, the only problem is that after two months they have set me to manual status and every order that I entered was to be approved and it was impossible to have executed any order during news so I closed my account.
So FXCM is good for the first months then you have to change.
Same here bro. Same here. I am soon to close my FXCM account with a last salvo on US NFP news. After that, it is bye bye FXCM. I currently opened an account with GFT; will be funding it come monday in time also for NFP...
  • #13
  • Aug 25, 2006 5:40am Aug 25, 2006 5:40am
Can someone tell me how to trade inside the spread?
  • #14
  • Aug 25, 2006 4:05pm Aug 25, 2006 4:05pm
No use at news times Miss Forex, but ....


If say there is a 4pip spead on GBP, with a real ECN the bid and ask are actually someones orders, so Bid 1.9000 Ask 1.9004, so if you place a order to buy at 1.9002 say the Ask will drop to 1.9002 and if someone sells at 1.9002 then your in.


Easy, worth the hassle ?? not for me.

( not that I'm with a ECN, prefer FXCM big time )
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #15
  • Aug 25, 2006 4:40pm Aug 25, 2006 4:40pm
Quoting MissForex
Can someone tell me how to trade inside the spread?
place a limit order
Relax and be happy.
  • #16
  • Aug 26, 2006 7:41am Aug 26, 2006 7:41am
Quoting alpignolo


I traded with fxcm for two months and it worked well, the only problem is that after two months they have set me to manual status and every order that I entered was to be approved and it was impossible to have executed any order during news so I closed my account.
So FXCM is good for the first months then you have to change.

alpignolo

Why did they set you to manual status ?? What were their reasons ??

Jacko
  • #17
  • Aug 27, 2006 3:12pm Aug 27, 2006 3:12pm
alpignolo

Question, where you taking advantage of the FXCM Delay at news time ?? on the News ??

Cause I'm making a killing there, bet they'll put me to Manual to some day soon

Seems to confirm FXCM make money from us losing, so not good long term if your profitable then, so all this hassle and finally profitable ish might be broker less
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #18
  • Aug 27, 2006 4:12pm Aug 27, 2006 4:12pm
I can tell you what to do when you are in the spread!!



Quoting MissForex
Can someone tell me how to trade inside the spread?
Trade what you see - Not what you think
  • #19
  • Aug 27, 2006 4:26pm Aug 27, 2006 4:26pm
I use fxsolutions thru an IB called proedgefx I have no problem trading anytime.. My backup is with a clearing firm here in florida called afxi they charge a commission and have a low spread but I can trade anytime without a shut-out or dynamic spread shock..
"Look Left Think Right"
  • #20
  • Aug 27, 2006 4:51pm Aug 27, 2006 4:51pm
Here is something to laugh at:
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