How to know if a Forex dealer is taking the other side of your trade?
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I have not traded during news if that is what you mean. But I've not once seen a spread larger than 1 pip on the "Level 2" type screen in MBT Desktop Pro.
As for error messages and such, yes that is for another thread, Desktop Pro 2.0 has been very flaky and lots of annoying pop up messages.
MBTrading pays you to use limit orders. If I were using Oanda or FXCM then I am not sure what I would do in this case.
Mike
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The following user says Thank You to Big Mike for this post:
$0.42 per side, so $0.84 per trade. But this does not count the rebate they give you when doing limit orders, which is a discount of $2.95 per 100,000 lot. So after ten 10,000 lot trades I get a $2.95 rebate, or roughly $0.295 per trade rebate.
Mike
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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The following user says Thank You to Big Mike for this post:
At MBT, $1 a pip would cost you 40 cents in commission each way on Eur/Usd. Of course you also have to pay the spread which is usually from .5 - .9 pips. That's if you do not use limit orders.
Use of a limit order would give you a credit. I don't remember the exact amount of each credit but I think it comes out to just a bit more than the amount you pay in commission each way. So if you enter + exit with a limit then you actually make money.
Other brokers, such as Oanda, do not pay for limits but they don't charge a commission either. Oanda is the only non-ecn broker I trust.
I had several broker at the same time, but using the same robot (on Metatrader) on all my Forex accounts on my server... and there was big differences on filled (or not) orders, slippage and problems closing positions. Now I have only 2 brokers, Alpari UK, which seems to be the best of the worse, and IB of course.
I believe only in profits, not in prophets.
The following user says Thank You to MyTraderAdvisor for this post:
There are only a few forex brokers that seem to have a decent reputation:
Oanda - use them myself, mostly for exchanging currencies for business and long term positions. No problems. Good customer service.
MBtrading
The Collective - supposedly run by traders. You pay a flat monthly fee
Dukascopy - Swiss. Good reputation except they don't allow very short term trading.
Most of the others, especially the popular ones you see advertised everywhere, all have dozens or hundreds of horror stories out there about blatant ripoffs and abuse. Maybe some of these stories are false, but I doubt they all are. You don't hear similar horror stories about futures, equities, and options brokers by and large; you mainly hear them about forex bucket shops.
I guess it depends what you mean by "trading against you".
You probably think that when you place a trade, your broker puts that out onto the market and you get a fill when the order is matched against an opposing trader.
What really happens in forex when you place a trade is - nothing, nada, zip. The broker takes your trade and does nothing. by doing nothing they take on the risk. Hence "trading against you".
They know that most people will lose and therefore they aren't taking on an awful lot of risk.
If they take your trade to the market, they would just capture the spread on your entry & exit.
If they do nothing with your trade, they collect all of your losses. As most people lose, this is a lot more lucrative than capturing the spread.
Unless you are a trader with a large account trading with a true ECN and have completed the credit qualifications, the broker must take the other side of your trade. It is that simple. Without that simple requirement the counter party integrity would not be sufficient in the FX market.
Forex brokers do vary in how they handle the risk. I have no issues with Oanda in this regard.
As a trader, it is your responsibility to evaluate your fills. You should know if you are getting excessive or asymmetric slippage and should take the appropriate action. As for the whiners complaining about broker stop hunting, any responsible trader should understand that the "market" is definitely stop hunting and that the market knows where the common places that have the most stops. There is only one person to blame if you are getting ripped off.
Bad fills are why I left the regulated exchanges back in the 90's. Felt like I was getting mugged with each order. I probably should have tried another broker, but I was done with the idiotic process of being required to call my broker every morning to place/modify my orders. Electronic trading should have fixed those issues. But until the regulated exchanges offer true 24 hour electronic trading with good liquidity or Oanda becomes a problem, I will happily stay with FX.
Oanda has claimed that over 75% of their orders are matched with other customer orders. If you do some digging around you will find that one of the founders has/had a public fund that also provides Oanda with liquidity. Now this is the part that is interesting:
Currently Oanda's spreads are still higher than normal even though the competition has resumed normal spreads. This occurs from time to time. Using DionysusToast's concept seems to apply here. Signs point to Oanda getting caught with some adverse risk exposure during the recent volatile times and now they are recovering it.
This does not bother me since Oanda has proven to be one of the most efficient FX brokers. By assuming some of the price risk they save hedging costs. As a trader, I want good fills at a competitive cost with a well capitalized broker.
P.S. Oanda is FAR from being a perfect broker. This is not the place for a broker technology rant.
The following user says Thank You to GT22 for this post:
I haven't placed a new swing trade in several days as I've been too busy.
