Which is the best ECN broker? I was looking at Hotspotfx,IB and MTB. I prioritze reliability and low transaction cost.
It depends on your requirements, I use IB but another worth considering in the list is EFX
Has anyone tried FuturesBetting? They say they have DMA but are based in Gibraltar which worries me a tad.
If you use this thread it keeps everything in the same place and updates constantly rather than going over the same thing again and again and again……
I looked at the thread you recommended. But I feel I would need some input on hotspot fx. I tried their platform, which left a very good impression, with instantaneous fills, execution, and tight spreads. But as with all brokers, the problems usually appear after a while.
ask on that thread and hopefully it will build up and become a solid resource as its a sticky. I dont have much experience with hotspot Im afraid but there are members who do Im sure.
Gammajammer: here is one specific thing, which concern me most. I sent this email to hotspot fx, but their answer might not be true. You maybe know the answer to the question in the email/ or whether my thinking is right? :
And i know from some friends that hotspot takes the other side of the trade initially before hedging it with a bank or matching the order against another customers position. When i read the paperwork it says that if Hot Spot has its own positions on the other side they dont need to hedge it at all. So there is a desk although it is not like most other non ECN brokers that dont offset your position and just trade against you directly all the time. And since the price you see is the price all other gets, i know that hotspot fx dont manipulate quotes or stop hunt.
So if I scalp, you might not have the time to take the other side(like many other brokers with dealing desks), and therefore hotspot fx maybe lose money. Though you cant manipulate quotes or stophund, i would guess that the only choice would be to kick me out if Im trading scalping too fast?
Wasp: I will post in the sticky thread after this discussion between me and gammajammer has ended.
while i use a european broker and an american ECN for trading, its for completely different reasons and what they can offer me.
for a while I have enjoyed EFX and use them muchly, but point out that Hotspots entry fee is $7500 and EFX with the same spreads and speed of execution, is only $250.
with ANY ECN, you cannot hedge as you can with a MT4 broker, but by opening TWO accounts with EFX or MB, you can do that.
so it comes down to account size in basic reality — if you have the entry fee for Hotspot, go ahead although EFX and MBs level 2 is miles ahead of what Hotspot offers !
On the issue of scalping, which is actually a mis-used term in this day and age, as it went the way of the SOES Bandits back in the late 90s, any ECN allows (and because they receive a commission on each trade) and encourages short term flipping and daytrading.
EFX and MB definitely DO NOT engage in any way in your trade — its you vs the market, and thats the whole enchilada !
Leverage is fixed at 100:1. Anyone have issues with this?
At an ecn broker they charge commission… Why are you going to start to trade with a bot. they all lose on a live feed. Very few are good. Do your self a favor and just keep your money. And if you are really serious about making money in the forex: the right way, find someone to trade it for you(that is good). They say 95% of self traders lose; its more like 98% lose and 2% consistantly make money every month.
At an ecn broker they charge commission… Why are you going to start to trade with a bot. they all lose on a live feed. Very few are good. Do your self a favor and just keep your money. And if you are really serious about making money in the forex: the right way, find someone to trade it for you(thank is good). They say 95% of self traders lose; its more like 98% lose and 2% consistantly make money every month.
while what you say about self traders is almost true, the original question was essentially, which one is best ?
the almost part is the use of the word traders, because by the time you can actually call yourself a trader you will usually have enough experience and information to actually trade profitably — the level of profit being up to you and who you are. What ACTUALLY happens is that
fall by the wayside, having blown their accounts, BEFORE they become good enough to trade competently and survive !
presently, by a smidge, IB is to be considered best of the ECNs available, with the lowest commissions, BUT
(some call it pathetic) and a rather unusual form of accounting and settling trades that one must get used to (3 day settlement) — not to say they are a problem, but they differ slightly from the other ECNs (direct access brokers) as well as differ from spread betters by a whole lot !
I will put forward, as i have posted before, that with all the things said about spread betters, and especially considering the tax angles, free charts and trading platform, what you pay in the spread is more competitive with direct access than you can really imagine —-
i would venture to say, in the macro examination, you are actually WAY AHEAD with a spread better !
this may bring forth some conversation or not, but I would not be so quick to jump into direct access (if youre a daytrader like me, you can easily pay 3 – 400 pounds a day in commissions — with a spread better, since the spread is built in, you never actually see or feel the charges.
AND of late, the spread is getting wider and the commissions higher on direct access, which is bringing the playing fields closer together.
another thing to remember about direct access is that it is UP TO THE OTHER TRADERS as to whether or not to close your trade at YOUR PRICE — they can pass right by you if they down like the price or have NO SHARES to buy or sell to you at that price !
, and there are some very nice spread betters out there (here in the USA what you call spread betters, we call brokers, and brokers handle the overwhelming majority of the forex market to this day ! (unfortunately for us here, we are taxed on winnings, although allowed to write off our losses against winnings, at least !)
once you know how your broker behaves, you simply trade around what they may throw up in your face. Ive been doing it rather well for many years, and have no problems with them at all !
i had a previous post on page one — it describes more of the differences between sbs and ECNs.
DONT ALWAYS BE SO READY TO LEAVE THE NEST — sometimes its warmer and more comfortable than you think !
MB definitely moving in that direction with coders to help you translate from metatrader language to their platform language !
Bots work until they dont — with the bots available to us normal folk, there are inherent limitations to what they can do — some of the really expensive ones approach artificial intelligence (but at this point in technology, only APPROACH it !) and can adjust to market conditions somewhat, but most are simply moving average crossover alerts that automatically place a trade when that happens.
the biggest problem with auto trading presently is that, while moving average crossovers DO WORK, they enter late and exit late, leaving an awful lot of money on the table —- its always a problem because if you use very fast moving averages, they tend to get whipped around by the market, and if to slow, theyre useless.
there are other types of signals from auto traders that tend to work also, but this is not the site devoted to them and i dislike them all — so if interested in bots, go over to forex factory or forex-TSD, both of which are mostly devoted to auto trading.
i have no attachment to either of those sites, and being a manual trader, do not even go there much anymore, but they are the biggest for auto trading ![/