All futures contracts have a bid and offer spread of one tick, tick value on micro euro/usd is $1.25, volume on this contract only 6000 a day! So very illiquid, full size euro contract volume 196,000, emini s&p volume 1,300,000. Micros will have a lot of spikes at such low volume.
Hi people,
I'm wondering, why do brokers forbid arbitrage trading?
Supposing a broker engages in 1-leg arbitrage, who is there to make sure they do not; who supervises broker activities?
Thank you
Hi people, I'm wondering, why do brokers forbid arbitrage trading? Supposing a broker engages in 1-leg arbitrage, who is there to make sure they do not; who supervises broker activities? Thank you
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Some brokers are B- Book brokers which means they internalise the trades.
if you are arbitraging that means they are handing out free cash .
other brokers who are true STP dont have an issue because the LP's handle that.
{quote} Some brokers are B- Book brokers which means they internalise the trades. if you are arbitraging that means they are handing out free cash . other brokers who are true STP dont have an issue because the LP's handle that.
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Hey mates,
Indeed, the STP Broker itself has no issues with whatever type of strategy you can come up with. However please make no mistake, because at the end of the chain there is always a Market Maker sitting in the form of LP who is profiting from your losses and vice versa. And I wont be surprised if those end LPs are pushing the brokers to minimize the toxic flow coming from arbitrage traders. At least, that is my understanding of the matter.
Here's a broker with Zero spread. Of course, they make it up with a large commission. http://www.atlaseforex.com/live-acco...h-zero-spreads I have no idea how reputable this broker is, but it fit the no spread, commission only criteria you have.
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Same here https://www.hfeu.com/eu/en/account-t...d-account.html although they offer raw spread which sometimes can be zero but its not always.
I doubt the broker you mentioned also offers a spread which is always zero.
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Lower spreads means lower trading costs and hence high earning revenue . This is what many scalpers also prefers and many brokers are offering zero accounts which i guess is specifically designed to meet the requirements of these scalpers IMO.
Spreads suck, both side of your trade, then add commission and slippage in FX and you have instant loss and a combo for continued losses. If you want zero spread, where you enter the market direct with an open position at neither a loss or a profit, but unfortunately still pay $7 round trip, well you have to use someone like Infinity Futures. IMO the only fair and profitable way to trade.
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Brokers which offer market execution can not offer zero spread because they put themselves under great risk where they have to pay for you in case of slippage. Market makers can offer you zero spreads all time but I'm sure they will have spread 30-40 cents on your eurusd.
I have been trading with FXCM for over a year with no spread, $6 round turn for full lots. However, Forex.com bought their retail business and my trading cost have gone through the roof. This is an old thread but Im wondering if anyone has found what I had with FXCM?
You can hand some traders tomorrows Wall Street Journal and they would lose
I have been trading with FXCM for over a year with no spread, $6 round turn for full lots. However, Forex.com bought their retail business and my trading cost have gone through the roof. This is an old thread but Im wondering if anyone has found what I had with FXCM?
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I had FXCM , they had very tight spreads and commissions(depending on your account type).Forex.com doesnt have commission but big spreads.
Hi Guys, Appreciate if anyone have any idea on forex broker with NO SPREAD and ONLY COMMISSION charged. Thanks. Regards, Michael
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Basically fixed spread account should fit the bill. I used one from Hotforex but found that their raw spread account has same low spread risks but much cheaper.
For example fixed spread on EURUSD is 1.8 pips while on raw spread account it is 0.1 pip in average + $8 round turn.
