ECN with and without commissions.

philipsimmions posted:
The hard work you are talking about James, is for your own good. You only will get benefits from it. And since you are in trading, you need to manage time to trade. And if still you have enough money to pay to any broker, you can think of lending me some. Lol.

My friend also suggested me to go for low deposits but I had already chosen some other broker. I wish I had waited for a little more time.

I can never compromise with services a broker gives. And why should I? I have put my money there and I should be getting everything whether it is about low spreads or high leverages.

Before going with a broker that is offering low spreads, you should know the average rates for a currency pair you want to trade. This will save you a lot of hassle later.

Most low spread brokers have the same spread value and it kind of depends on the pair as well. Anyway, you can go to different platforms and check the spreads they are offering.

PercymcDonnell54 posted:

philipsimmions posted:
The hard work you are talking about James, is for your own good. You only will get benefits from it. And since you are in trading, you need to manage time to trade. And if still you have enough money to pay to any broker, you can think of lending me some. Lol.

My friend also suggested me to go for low deposits but I had already chosen some other broker. I wish I had waited for a little more time.

That’s right and for major currency pairs, it is likely to be 0.1 to 1 pips. This is just an average spread with many tight spread brokers.

Numeromatt posted:
Before going with a broker that is offering low spreads, you should know the average rates for a currency pair you want to trade. This will save you a lot of hassle later.

But I read somewhere that the spreads also widen at the close of the market due to any news update or something. Is that right?

Marshshaun posted:

Numeromatt posted:
Before going with a broker that is offering low spreads, you should know the average rates for a currency pair you want to trade. This will save you a lot of hassle later.

But I read somewhere that the spreads also widen at the close of the market due to any news update or something. Is that right?

Yes, spreads do widen when there is low liquidity or high volatility in the market. release of major economic events and news cause panic in the market which increase volatility. And during opening and closing time there is hardly any trading volume thus the liquidity is very low which leads to widening of the spreads.

philipsimmions posted:
The hard work you are talking about James, is for your own good. You only will get benefits from it. And since you are in trading, you need to manage time to trade. And if still you have enough money to pay to any broker, you can think of lending me some. Lol.

Now that’s something I never heard of before. I mean I knew there were those mentors or gurus but account managers is something new to me. I’ll look it up, thanks.

philipsimmions posted:
Most low spread brokers have the same spread value and it kind of depends on the pair as well. Anyway, you can go to different platforms and check the spreads they are offering.

That doesn’t always happen and about 95% of the times your spread is likely to remain low so don’t worry about it.

Indeed, there are very rare cases when the spread rises very sharply, so I don't need to worry about this.

I think it is better to go with ECN brokers that charge lower commissions and provide tighter spreads to their clients.

friedjohan posted:
I think it is better to go with ECN brokers that charge lower commissions and provide tighter spreads to their clients.

You should pick a good broker to survive in this market.

Some offer this. CedarFX have a 0% commission option. This natually will mean spreads might be higher than say a broker like IC Markets for example. You'd need to look into both and weigh it up. I use both brokers and the lack of commission is good for longer term trading where spreads maybe aren't as important as they are when scalping let's say. As always DYOR.

No commission would mean wider spreads. As said by @seb king, you got to weigh your options. I would always go for broker with low spreads over no commission. Finprotrading, lmfx, fxchoice are some brokers I found good in this regard. One just has to ensure that the commissions are not too high.

I have been using a broker from Amarkets for quite a long time, and so far this option seems to me excellent.

I don’t believe in such things. No matter how much these brokers say that they offer transparent pricing, I don’t think they actually do because they are there to make money from their traders and if they start keeping pricing transparent, they will hardly make anything.

I also prefer ECN brokers over other types as I get the best prices for all trades I execute with them. The good part is that most brokers offer ECN accounts making it easier for traders to find a good one for them.

Be it an ECN broker or an STP, if I am getting fast order execution and tight spreads, I am staying with the broker. It also depends on what you want from your broker and that can be anything in accordance with your trading needs.

As far as I am aware, most ECN brokers do have commission costs, and I trade with FP Markets because their commission costs are lower when compared to most ECN brokers.

They charge $6 per round lot with faster execution speed, and the customer service is also quick in responding to client queries.