S T P Brokers equal to ECNS for retail traders

STP (straight through processing) brokers are the best brokers for forex.STP brokers keep a spread between interbank rates and and traders bid /offer .Honest STP brokers do not trade against clients and use bucketshop tactics to steal from against clients.

Your orders are processed straight through to the interbank maket, after adding a broker's spread.There should be no delays in execution and all orders will be filled without any execution delays.

Honest STP brokers do not use dealer plugins to inflict deliberate slippage to your account.They will honour stop losses set at the exact price set by trader.

According to my knowledge,the only honest broker offering STP processing is ODL Securities .This is not the same ODL of the past ,the one which used a dealing desk..ODL have made many improvements and do not trade against their clients .Only recently did they go STP.

Execution delays are non existent as all your orders are processed in the interbank market

Those offering ECNS are offering no better deal than STP, after comissions and spreads.There are no true ECNS operating according to my knowledge.

Check out Dukascopy. Pretty nice execution.

You kids need to bear in mind the fact that what you think of as the 'interbank' market, isn't. It's physically not possible to route your sorts of orders through to the 'interbank market' as the minimum trade size to execute on the main true interbank ecns (EBS / Reuters D3) is one million in base currency.

The simple fact is 99% of retail traders have little or no understanding of how the price they trade on is derived, and where their money flow goes after they press the buttons.

Pa

My understanding is the price for most metatrader brokers is derived from the liquidity providers like Deutsche Bank,Barclays ,Ubs and other liquidity sources.It is via these banks . the orders are placed in the interbank market.

There is broker spread and a bank/liquidity provider spread added.Most orders get filled in the liquidity providers liquidity engine, balance the bank /liquidity provider will put in interbank market .

Our Advantages - Prime Brokerage Model - Alpari (UK)

All our liquidity providers submit trade data and the necessary funding requirements to Deutsche Bank for clearance and settlement.

Correct me if I am wrong.

One thing I do not understand is, we are warned of market fixing by MetaTrader 4 (MT4) but ODL Securities offer just that MT4!

How can we tell which brokers use MT4 in a fair as opposed to unfair way?

insight2 said:

One thing I do not understand is, we are warned of market fixing by MetaTrader 4 (MT4) but ODL Securities offer just that MT4!

How can we tell which brokers use MT4 in a fair as opposed to unfair way?

Click to expand...

I use ODL and I have had an account over 2 years with them.I was trading oil on live account.I never noticed any dishonesty from the broker.

Recently their execution has improved with lower spreads on MT4.

Testing broker's honesty
Operate live accounts with same expert advisors, simultaenously on two separate brokers.Then monitor the fills and spot the dishonest broker screwing your account.

You will know which account to close fast.

Live trades at ODL

O D T

This attached thumbnail, what is the software depicted by the image? Is that MT4 user interface?

Can you please explain what Expert Advisers are? I can see a button for Expert Advisers on this attached thumbnail, but is that a person or some software feature?

insight2 said:

This attached thumbnail, what is the software depicted by the image? Is that MT4 user interface?

Can you please explain what Expert Advisers are? I can see a button for Expert Advisers on this attached thumbnail, but is that a person or some software feature?

Click to expand...

Yes .That is Metarader4 interface.

Expert advisor is an automated trading system software.

Expert Advisor Sample - MQL4 Articles

What is an Expert Advisor

Look at the words that you are using 'Interbank'. INTER.....BANK

i.e. between two banks.

Retail orders do not constitute orders between two banks. Doesn't mean A bank isn't the ultimate upstream liquidity provider, but that's a completely different thing. Hence my explanation about minimum order amounts in EBS and D3

It might seem as though I'm splitting hairs, but I'm trying to make people a little more aware of how their liquidity is sourced.

oildaytrader said:

Pa

My understanding is the price for most metatrader brokers is derived from the liquidity providers like Deutsche Bank,Barclays ,Ubs and other liquidity sources.It is via these banks . the orders are placed in the interbank market.

There is broker spread and a bank/liquidity provider spread added.Most orders get filled in the liquidity providers liquidity engine, balance the bank /liquidity provider will put in interbank market .

Our Advantages - Prime Brokerage Model - Alpari (UK)

All our liquidity providers submit trade data and the necessary funding requirements to Deutsche Bank for clearance and settlement.

Correct me if I am wrong.

Click to expand...

ODT - am I understanding you correctly - are you saying you work for Alpari?

Just curious.

GJ

By the way I just had a look at the Alpari website - there seems to be some oddness going on. They have a section on 'minimum spreads', so basically that says to me all this guff about routing through directly to the market is really only of limited use as terms of cost saving, as the end user can never really take full advantage of the tighter markets.

If they really are aggregating the 5 larger providers' streams, and streaming in 5m base ccy (which is what it looks like), then they're making a fortune trading on those fied spreads if they can keep the volumes up. Trust me on this.....

GammaJammer said:

ODT - am I understanding you correctly - are you saying you work for Alpari?

Just curious.

If they really are aggregating the 5 larger providers' streams, and streaming in 5m base ccy (which is what it looks like), then they're making a fortune trading on those fied spreads if they can keep the volumes up.

GJ

Click to expand...

Sorry , my mistake .I should have stated it was a quote from Alpari site.

I don't care what they make , it is their right to earn , but not at trader's expense.Trying to pick and choose which orders to fill and not fill , sometimes they are getting caught with their game and not filling orders .

O D T

Are you talking about limit orders?

GammaJammer said:

Are you talking about limit orders?

Click to expand...

Instant orders used by dealing desks.

S T P uses market orders , but I do NOT believe Alpari use STP.

Limit orders are much more difficult to get filled, if not impossible , in fast trending markets

O D T

Ok so now you lost me. Take me through the sequence of events when they 'aren't filling' an order....

Are you actually telling me you can have a situation where you submit a market order and you get nothing done?

GammaJammer said:

Ok so now you lost me. Take me through the sequence of events when they 'aren't filling' an order....

Are you actually telling me you can have a situation where you submit a market order and you get nothing done?

Click to expand...

I ran expert advisors on demo and live accounts simultaenously.The demo got filled .The live accounts did not.

On that day the gbp /usd was moving fast and Alpari spreads were fixed 3 pips for cable.

Unfortunately I see it happen on a regular basis.

There are no log files on my live account folder.

O D T

How can it not fill you if you're using market orders? I understand slippage / requotes, but not no fills.

But when you say 'I was using an expert advisor' do you mean an API was doing the trading for you? Was there no manual order entry?

GammaJammer said:

How can it not fill you if you're using market orders? I understand slippage / requotes, but not no fills.

But when you say 'I was using an expert advisor' do you mean an API was doing the trading for you? Was there no manual order entry?

Click to expand...

The logs showed nothing.

The A P I was trading on MT4.

Here is an example of a log file entry from today.After the trade is executed at buy market, an entry appears in the logs.There is no record of order being sent.

If broker is using automated dealing software, the order would get filled (at market with slippage)or be requoted.Price has moved very far - no requote.

That file is meaningless to me. So you're saying that you connected some sort of a 'robot' to this platform via the API connection, and it stated that it had sent orders but the support people at the platform are claiming they weren't recieved?

Just want to understand...

GammaJammer said:

That file is meaningless to me. So you're saying that you connected some sort of a 'robot' to this platform via the API connection, and it stated that it had sent orders but the support people at the platform are claiming they weren't recieved?

Just want to understand...

Click to expand...

The particular incident goes back to June 2001,the brokers log file for the last few months show countless requotes .I can not see any order being sent , but other orders were sent on the same day and requoted.

This is pathetic service from a broker claiming to be STP.In a fast moving market , a trader does not want a broker to come back and waste seconds requoting.

I spoke to the broker and asked if they were STP .He said yes , and I advised him about requotes and he replied " if price moves we requote"

There should be no requotes in a STP market order execution, and I totally agree with Jason.

http://www.trade2win.com/boards/metatrader/74696-metatrader-bucket-shops-4.html#post936524

Here is the text of log

07:50:49 '852067': instant order buy 0.01 GBPUSD at 1.62524 sl: 1.61724 tp: 1.64524
07:50:50 '852067': request was accepted by server
07:50:50 '852067': requote 1.62532 / 1.62562 for open buy 0.01 GBPUSD at 1.62524 sl: 1.61724 tp: 1.64524
07:50:50 Expert stdlib GBPUSD,H1: loaded successfully
07:50:56 '852067': instant order buy 0.01 GBPUSD at 1.62607 sl: 1.61807 tp: 1.64607
07:50:57 '852067': request was accepted by server
07:50:57 '852067': request in process
07:50:57 '852067': order was opened : #51671016 buy 0.01 GBPUSD at 1.62607 sl: 1.61807 tp: 1.64607

O D T



ODT