I have recently started news trading, and i'm looking for the best broker out there for this. They will probably need to be ECN or STP. Preferably in the NY area for lowest possible latency (i currently rent a VPS there, so i will have 1-3 ms to most brokers on the east coast). But maybe a broker abroad will work too, i still don't know exactly how fast you need to be.
Today i use FXCM and MT4 with an EA that bypass the graphical interface, but seldom gets filled due to high slippage (i send the order within 5 ms or so after the news been released). So i don't think they are fast enough, at least not with MT4.
Is anyone doing this successfully and can help me out with one or more brokers to use? I've been looking at Dukascopy (no MT4 yet and abroad), Alpari UK (abroad, and no ECN MT4?), FXDD (abroad? ECN?).
I greatly appreciate any help since it seems extremely hard to find a really fast and reliable broker for news trading (and i can't create a live account with all of them to try them out). People are doing this with good profits so there must be a few out there!
I believe you can use MT4 with MB Trading, which I have heard good things about. I use Interactive Brokers, which I recommend for currency trading because they have deep liquidity and relatively low commissions, but no MT4 on IB. I think your results will improve with a true ECN. That said, I don't trade news, but if you are placing limit orders, then I believe you will have difficulty filling and market orders will also almost always result in good slippage regardless of the ECN.
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Kami, thanks for your input. Have you tried all those brokers in live news trading situations yourself? Dukascopy is way over in Switzerland so the latency will be a factor, but maybe still worth it?
And you don't believe in FXDD at all?
MT4 seems useless anyway, another day without getting filled due to high spread. If it doesn't work with FXCM, the only MT4-ECN broker as far as i know, i doubt it works at all.
Or actually, i have a question here:
The ECN part just enables faster fills, but the spread still can be high, right? So no matter how fast they fill, if the spread is too high, i will never get to the point of actually making the trade? So you need both a low spread and a fast execution, have i understood it correct then?
MT4 gets a bad rap largely because of the way brokers choose to abuse it.
I currently trade in the Citibank liquidity pool through a private/membership MT4 implementation and it is pretty much a flawless implementation. Citibank remains in the top 5 LPs. Their CitiFX-Pro retail offering should be as good, although I think they may have a 5-figure deposit starting point. Spreads do widen on news and I have been filled 5-10 pips away, but that is the 5-seconds before and after the news; after that, it's usually very precise and instantaneous fills.
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