I do not understand why CME created new FX instruments, instead allow to trade mini and micro on the same conventional instruments, i think in this way they can catch many more traders and the liquidity would became even more high.
It's a good question. You can email Craig LeVeille, Director FX Products at CME Group, he will respond. He gave me a great welcome email and answered some questions for me last year in my brief venture at that time.
It may be because the quality of institutional hedgers is quite high and they didn't want to upset their premier clientele. Of course institutions can match their futures trades through the interdealer brokers as well. But it is interesting to see the volumes on CME increasing dramatically this year as many institutions do not trust their OTC counterparties and are putting more of their business on the exchange.
If you watch the Gartman video on the products he says he likes the creation as it allows for precise hedging and trading strategies so certainly there are some big players who wouldn't mind seeing the liquidity combined. It certainly would be cool. Perhaps it is just a marketing idea as well to encourage retail traders to come to the exchange. I'm happy it is available but look forward to building my account to a level where I can trade with two big cars...
Sorry, u are right, I expressed myself badly, I would mean that there's no a minimun fees for low volume trading like on IB, that on FX futures u will have may little small commission than spot, and regulated exchange and broker, so if u trade 1 or more unit pre open position imho is better trade futures.
Todd: I use Ninja with free Gain demo for data feed for charting. Use Metatrader for order entry. They are not exactly the same tick for tick, but close enough and if I need an exact tick price I can look at the MT chart.
I use the Forex division of PFGBest for the Forex. The biggest reason I use them is that they are NOT a dealing desk so they are not taking the other side of each of your trades. You do pay a fee (just as in trading futures) since they have to make money some way but their fees are reasonable - not much different than trading futures.