Best broker for Day trading

[CotswoldD]

Hi Guys

Broker/platform advice needed.

I have been demo trading on Plus500 Web trader in the CFD market with good results. Learnt alot in the last month of practicing on demo.

After looking at this forum so peeps have said that Plus500 are not very good.

Ok i am not very good with all the jargon yet, but here goes.

I am a day trader, pretty much scalping in and out of EUR/USD, EUR/GBP with a little JPY after last few days or turmoil.I try and close each day if poss, though have left some overnight if i think will move in my favour, have expereimented with close on loss and close at profit functions.

Looking to start with 1K GBP and see how i get on, will start small and spread on different transactions, so would need good leverage to make it worthwhile, Plus500 offer some nice bonus when you join.

Would like it to be fast.
No issues with paying out
prefer to deal with a UK firm, are there any?
Do not want a broker that could mess with my trades or agaisnt me!

Oh what are market makers?

So what brokers/platforms do you recommend?

 

[DT]

try interactive brokers or LMAX... or FX futures on the CME

your broker should be a intermediary not a counterparty... most FX retail 'brokers' aren't actually brokers but are simply bucketshops... ditto to most spreadbetting firms. I wouldn't be convinced by the various small ECNs marketed at retail traders either... FX is a den of thieves.

 

[timsk]

. . .Broker/platform advice needed.
. . .Oh what are market makers?
. . .So what brokers/platforms do you recommend?

Hi CotswoldD,
Before getting into brokers and platforms, here's an explanation of what a market maker is . . .

Market makers are individuals or financial institutions who literally ‘make a market’ by maintaining a bid and ask price in a given instrument by always being available to buy or sell at publicly quoted prices. The role of the market maker is to maintain liquidity within an instrument, typically by buying when there is an abundance of sell orders, and selling when there is an abundance of buy orders. An example of a market maker is a spread betting firm, so that when you buy an instrument, you do so from them; i.e. they are the counter party to the trade and sell the instrument to you.

The point about spread betting firms is that they make their own prices. Yes, their prices are closely correlated with those of the underlying instrument, be it a spot FX pair, an equity index future or an individual share, but you are not actually trading forex, futures or equities respectively; you're trading a product of the spread betting firm's making that is derived from them. As a general rule of thumb, day trading with such firms isn't recommended, as their spreads tend to be wider and their prices can be weighted in their favour rather than yours. This tends not to be an issue with swing and position traders who take a longer term view.

As to which broker to go with, this is something you'll have to work out for yourself. A good start would be with this post, and then follow the link in it to the FAQ. As for Plus500, there's lots of threads on them: I've offered my views on them in this one: Does anyone actually use PLUS500? Certainly, there are plenty of alternative U.K. firms for you to choose from.

Lastly, beware of your use of leverage, especially with a small account of £1k. Opinions vary widely about how much to use - if any - but pretty well everyone is agreed that high leverage plus a small account is a recipe for disaster. You can be brilliant at picking market direction (and lots of traders are) but, if your risk and money management are pants, you'll lose in the long run. For what it's worth, I suggest you open a 'micro' account that let's you trade £0.10p and only increase this incrementally as your equity builds.
Tim.

 

[gerryg]

Hi Guys

Broker/platform advice needed.

I have been demo trading on Plus500 Web trader in the CFD market with good results. Learnt alot in the last month of practicing on demo.

After looking at this forum so peeps have said that Plus500 are not very good.

Ok i am not very good with all the jargon yet, but here goes.

I am a day trader, pretty much scalping in and out of EUR/USD, EUR/GBP with a little JPY after last few days or turmoil.I try and close each day if poss, though have left some overnight if i think will move in my favour, have expereimented with close on loss and close at profit functions.

Looking to start with 1K GBP and see how i get on, will start small and spread on different transactions, so would need good leverage to make it worthwhile, Plus500 offer some nice bonus when you join.

Would like it to be fast.
No issues with paying out
prefer to deal with a UK firm, are there any?
Do not want a broker that could mess with my trades or agaisnt me!

Oh what are market makers?

So what brokers/platforms do you recommend?

Had dealt with Sucden financials before but seems they don't care about small-funds traders anymore (ignored numerous of my inquiries)
My second choice is Нotforex, it's offshore though, but can supply you with everything what you need (based on your descriptions). But do your own diligence on CFD brokers there are pretty of them on the market.
Cheers.

 

[DT]

My second choice is Нotforex, it's offshore though, but can supply you with everything what you need (based on your descriptions). But do your own diligence on CFD brokers there are pretty of them on the market.
Cheers.

well its not FCA registered and it looks like a bucketshop

stay well away IMO

 

[gerryg]

well its not FCA registered and it looks like a bucketshop

stay well away IMO

Except HF I also trade with FXCM, no difference though..
Regulation is not everything, believe me or not, check ****** case they had all regulations ASic,FCA, Cysec etc.

 

[DT]

While there have no doubt been issues with FCA/FSA regulated firms in the past too why take additional unnecessary risk dealing with bucket shops that aren't even FCA registered when there are plenty of much better alternatives that are.

 

[DT]

clicking on the link it just shows a website with 'account suspended'

why are people promoting dodgy no name FX 'brokers'? - this sort of shilling is rather obvious

for example look at the posting history of the spambot above - he's just plugging the same naff website: capital1forex

 

[Pippi56]

Except HF I also trade with FXCM, no difference though..
Regulation is not everything, believe me or not, check ****** case they had all regulations ASic,FCA, Cysec etc.

Noone has lost money with a broker going bankrupt in UK. See Alpari for example, or world spreads. FCA regulation may not be perfect, but at least there is a compensation fund if a broker blows up.