newbie fx questions

[kiy818]

hi all,

i am relatively new with fx and am currently using sb firms to trade fx. I was interested to know how others trade fx other than using sb firms. I undertand one can trade FX direct 24hrs a day. Using this method are trades executed straight away?

For example on Friday minutes prior to the announcement of non farm payrolls data, cable spiked up dramaticly- with a sb firm one finds it very difficult to have a trade executed during key announcements. Do people using alternative fx methods experience the same problem or not?

Thanks for the help any answers would be much appreciated

 

[Buk]

you'll encounter a varied cross section of replies regards the use of sb's as a trading platform kiy818, generally speaking they're o.k most of the time.....particularly regards 'position' trading. There is a tendancy for slippage to occur dependant on market conditions, and not all have the facility to trade a live 24 hr market. Have a look around the Forex threads here & explore the alternative broker reccommendations. Quite a few traders diversify their platform usage according to their strat.

As for trading 'news' events....you'll find spreads can widen immediately prior to a major announcement, and often the sb's will revert to 'phone only' dealing, this can & does pose a negative as far as catching moves in this environment, and yes, spikes (similar to those witnessed Friday) can result in hellish slippage.....I guess it comes down to your style of trading/strat/defined plan & psychological approach to the markets.....sb's are fine for 'feeling your way' & gaining market exposure trading a new instrument such as Forex, and as your experience increases, you may wish to explore other avenues.

a few of the more prominent 'brokers' extole the virtues of guaranteed fills on entry/stops & one click (no dealer intervention) facilities....these might prove more attractive if you're looking to participate in the intraday arena.