I have a question on US or UK brokers for FX trading and would be grateful for feedback:.
I currently papertrade FX with ThinkOrSwim (ToS), which I used when trading options. To go live, I want to open an account with a different US broker, as ToS seems to be too expensive for FX trading. I do like their platform, though.
For FX, does anyone have good experiences with MBtrading or another broker, for small/modest account sizes? The forum posts on MBtrading (that I could find) are a bit dated. Does anyone have recent experience that they could share?
My wishlist for an FX broker is:
Regulated, ECN if possible, reasonably tight spreads, LOW fees and minimal round turn fees (which is why I want to leave ToS) very stable fast platform, good customer service and security of funds. I would use Interactive Brokers but donít have the minimum account size, plus their customer support is lousy. There are no Ďmustsí on platform, other than reasonably easy to use - Metatrader or any other is ok.
On security of Funds:
A few Australian FX brokers offer customer funds held in separate AAA rated well known Australian banks. Does MBtrading or another broker offer the equivalent in the US.
Does anyone have a well founded advice on security of funds when trading with a US broker in FX?
How important is it? I hear that Market makers will sometimes stop hunt you. Is that a nasty rumour, by traders who blame the market for their woes? Would ECN broker eliminate this problem?
thanks very much for taking time to consider the above
I use MB Trading. There are pros and cons. Their systems were a bit unstable but I think that has been fixed because haven't had any outages over the last couple of months. Another good one to look at is LMAX. It is regulated under UK law and has been getting positive reviews.
On the question of stop hunting, I don't think it will be happening on ECN or if it is even possible. The price for currency pair is published from the blended price feeds of the Interbank market. So if you have a stop loss order sitting 20pips away, how are they going to move the price in an ECN environment? Everybody and their uncle would cash in the arbitrage opportunity for some free money.
I have never dealt with a bucket shop or a Metatrader (LOL) broker so I am not sure if it happens there or even how they do it on their own platforms. Must be widening the spreads and then hedging on the open market.
The following user says Thank You to Traderji for this post:
Look on LMAX its in UK they are DMA offer web platform ,Multicharts and MT4 minmum for deposit is 10000 but through some IBs you can open account with 1000 min trade size is 0,1 for FX kontrakt comissions for 0,1 kontrakt 0,03 per side By webplatform are orders held on their servers by Multicharts I dont know and by MT4 are held on your pc