Hedging from the US

Just opened a Forex.com account to start building it up before going live. I now realize I would like to be able to hedge when necessary. Can anyone suggest a good over sea's broker that works well with US customers?

I would suggest Trader's Way. They've been around for many years and seem to always respond to issues traders have on reviews sites.

Hedging is allowed. No FIFO. Scalping and EA's allowed. Large leverage so margin shouldn't be a problem on as long as you are following good risk management principles. "ECN" accounts and micro lots. Etc.

Obviously they are unregulated, but you can start with a small live account and see how you like them.

FXMaster, i am thinking of trying Traders Way too. Can you tell me what has your experience been with them? I'm mostly concerned with withdrawals and if they might just close my account and steal my money. Also how are spreads during news events and cost of withdrawal/deposit?

I was with FXCM before they shut them in the US and they would always hype up the spread for any violent move in the market at any time (news or no news). If price moved very fast for no reason they would not miss to hype up the spread and the spread indicator wouldn't even show it. If price moved even like 10 pips in 3 sec, they wont miss their chance.

Hedging in the purest form of it, is eliminating exposure. And exposure is exactly what's needed to make a profit or loss in any type of trading.

So you could as well just close some of your position instead of adding to it in the other direction.

Unfortunately I don't use them for my main account, but keep a smaller account with them for some higher risk trading.

I haven't really had much problems withdrawing from them and a few of the other people I know using them haven't either. There is a possibility that they could run off with your money, however I don't think it is likely. They are one of the few unregulated brokers who have been around for many years and they have responded to any queries I've had. They also seem to have a fairly good rating so I think they are pretty good bet. Now if something goes wrong with their financials there is nothing stopping them from taking your money and running away, but that's a small risk you must be willing to take. I haven't had any problems with withdrawals since I started my account about 6-7 months ago.

FXCM had spreads increase because you had an ECN account. This means you were supposedly getting "real" market prices where other buyers and sellers were trading, so if there weren't buyers and sellers at certain price levels the spread would increase with FXCM like it would the real Interbank market. The pro's of ECN is supposedly trading "at" market prices and having tighter spreads throughout the day, however the con's include higher spreads + commissions during news times and other volatile times. You can search up ECN vs. STP vs. market makers to learn more if you want to. BTW just because you have an ECN account does not mean it is TRUE ECN where your orders are getting matched against other buyers and sellers, but some brokers would like you to believe this and is why they advertise these ECN accounts saying you are getting real market prices.

I have an ECN account with Trader's Way. Combining commissions and spreads the cost is sort of on the higher side, but with the leverage, hedging, and no FIFO it's understandable. Since it is an ECN, spreads do increase during volatile news time to reflect liquidity in the market. However, I haven't really noticed large spread increases due to random big price moves. You can also opt for their other account types. They have a fixed spread account with no commissions and a variable spread account with no commissions. You'll probably end up paying more in costs during normal liquid times, but when price movements get volatile like during news it'll favor the other account types instead of ECN. I do tend do get slipped 0.2-0.4 pips sometimes on my ECN account, this shouldn't happen with the fixed account as you should get the price they quote to you since it is instant fill.

Another thing to note on my account is spreads do increase during rollover like they did with FXCM.

They charge 3.9% to deposit by card. 1% + $5 to withdraw by card. They do have other payment options as well. You can find more information on their website.

Good luck! And if you are still a little unsure, you can start with a small account and see what you think.

I can recommend lqdfx, accepts US clients and has no restriction on trading strategies

Thank you very much FXMaster. I opened an ECN account with them and will put 100 bucks to try them. Will probably use one of the other methods for deposits/withdrawals since you pay less commision. You can really blow accounts fast with them