forex spread and liquidity

[one/two]

Hi all

I recently started taking an interest on the forex markets.
i'm applying a scalping technique that i use for indices's.
it seems to work just as well if not better.
however I can't seem to find a broker that doesn't ask for 3/4 pips spread
what i need is the IB equivalent!
any suggestions?

finally, how does the liquidity of the main currencies compare to European futures?

all advice appreciated.

 

[Trader333]

Why not trade with IB then ?


Paul

 

[one/two]

i see IB have their own forex.
i changed some dollars back to pounds myself, however i had to delay the transaction because they didn't always have a bid and an ask.
is this normal, (lack of liquidity)
thanks for any help.

 

[Trader333]

Try setting up two underlying currencies on different lines, one for USD with trade to GBP and the other as GBP with trade to USD.

It is basically the same trade but for some reason you often find bid and asks on one but not the other. It depends on how other traders have set things up. Generally I have found that having underlying in USD is better.


Paul

 

[peto]

the IB forex you refer to is really just for converting surpluses/deficits in you account back to your base currency. The spreads and times of availability make it an unsuitable instrument for trading. I suggest you look into trading currency futures on GLOBEX through IB. They are available nearly 24 hours (not 10pm to 11pm our time I think) and have reasonable spreads and liquidity (eg Eur/USD generaly 2 pips or so). 1 pip = $12.50 except GBP/USD which=$6.50