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This applys to the popular pairs; EURUSD, GBPUSD, AUDUSD and assumes normal market conditions
liquidity is probably the big one. Unless your trading lots of 1 million+ in size your order will get a good fill even on a market order.
adjustable lot size range from 1000 to 1,000,000 plus with increments of 1000, 10,000, 100,000. Depending on the broker you can adjust size from 1000 to whatever by increments of 1000. This allows live trading with limited risk: 1000 = .10 a tick 10,000 = 1.00 a tick and so on.
Lower commissions. Most brokers do not have commission. They make their money off the spread which on the euro for example, is a couple of ticks. The better brokers charge commissions and have lower spreads. MB trading has a spread of 1 to 1.5 ticks on the euro where FXCM has a spread of 3 ticks. You get what you pay for.
24 hour trading with better liquidity. Even after 5 pm the pairs are liquid enough to get out even with a large size position.
Those are the big ones from my perspective.
nosce te ipsum
Trade what the market is doing; NOT what you think its going to do.
Last edited by Silver Dragon; December 5th, 2011 at 11:19 PM.
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The big difference and the reason I will never scalp again with FOREX is because you typically are not all sharing a central order book. It is all dependent upon what the Market Maker (your broker) will do for you and/or how quickly they can hedge your trade.
It all depends on your broker and they vary greatly! I like Dukascopy, IBFX, OANDA to name a few...
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Hmmm, I would say the costs of placing a trade (commission) are less in futures. A spread of 1 to 1.5 pips in forex equates to $10.00 to $15.00 "commission" for a standard lot in Forex. I pay about $5.00 commission for a round turn in the 6E . And each tick on the 6E is worth $12.50.
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