Question: What are new traders looking for in a BROKER/DEALER especially for FOREX and CFDs.
I would appreciate to get your inside on this guys.
Examples can vary such as: segregated accounts, margin, stop-out levels, education, etc.
For me, UK based - easier to deposit and withdraw, lower connection latency
as server is UK, low spreads, UK regulation (inc. FSCS).
Fast fill speed, little or no designer slippage, can connect a decent external platform.
For me that means LMAX.
Others would be EBS, CapMar and Currenex.
Very nice reply; but still why UK/ FCA and not any other jurisdiction?
Let's share some insides to the guys seeing this post.
this is become a good discussion post; with highlights of:
- Cheap transfers
- Speed
- Reliability
wait for the punchline..........its coming
how I / we can help them get it!
Narrow spreads have been mentioned, but I'd be willing to pay slightly wider spreads for a broker with a reasonable policy with regard to spread differentials on increased volatility.
OANDA 2.4 spread on nzd/jpy is fine, but not when it hits 30 under stress. I'd be willing to pay say 5 pips for a fixed spread on that pair, for instance.
It would be one less issue to have to manage around and one less thing to have to think about when managing a live trade.
The extra income they made from taking double the normal spread on every trade I take would offset any exposure they took on during the infrequent exposures to high volatility events. Obviously they have the financial modelling to calculate just what they'd need to charge - wouldn't necessarily be double - to cover themselves, but you get my drift.
Had a quick look at LMAX yesterday when OANDA hit the skids and looks half decent. A little concerned I couldn't find out how to order the pairs list or add additional pairs. Even more concerned when their helpdesk didn't know either. But if their spread action is as you say, that would be a minor inconvenience I'd be willing to put up with.
From some conferences I have been personally LMAX was suffering on the following statment:
Now they even have it in the website:
Firm limit order liquidity with no ‘last look’ rejections more
LMAX Professional runs an open order book (up to 20 levels of depth via FIX), driven by streaming no ‘last look’ limit orders supplied by liquidity providers, ensuring transparent price discovery and true cost of trade for every matched order.
Market participants are free to enter their interest to be worked in the market. close
Overall LMAX idea is a very good idea, but the MT4 domination on retail is another thing to factor in.
I guess that is why OANDA moved towards MT. Traded before with OANDA, slippage on execution (I can say), not the best trading experience but very good brand name (especially in academia).
This brings us to another topic for our audience: Instant Execution Vs. Market execution; does it matter ?
Instant Execution: Re-quotes and price guaranteed up to a certain level.
Market Execution: Swiping the limit order book (slippage on order usually above 2 Million i.e. 20 lots).
When are you going to recommend some unregulated broker (or one that is regulated in Mauritius or Estonia or something)? The forum seems to be crawling with that at the moment.
I think something got lost in your summary.Day 1 - Summary
retail traders care mostly about:
6. Fix spreads are good, but in case of dynamic/variable spreads a policy should state what are spikes
Day 1 - Summary
retail traders care mostly about:
1. Easy/friendly interface for deposits and withdrawals
2. Cheap payment systems, with flexibility i.e. cards, paypal as an alternative to wire transfers
3. Speed in connection and execution
4. Regulation is vital, unregulated brokers causes concerns (!)
5. Execution without slippage is an advantage (having people not understanding the difference between market and instant execution)
6. Fix spreads are good, but in case of dynamic/variable spreads a policy should state what are spikes
7. Help desk ability to understand the trader, people who answer calls do not do their homework and do not follow up on traders
Very interesting results, looking forward for day 2.