Search for Direct Access Forex Broker

M

myoung

Junior member
Messages
11
Likes
1
I have been trading Forex based on fundamentals for about a year now through a spreadbet firm and wish to now make the move to a broker who offers Direct Access.

The platform to which I would place my trades would ideally have a price ladder and have the facility to enter position strategies and the normal limit/stop orders and trailing stops etc.

Ninja Trader and IB would have been my natural choice but I have been told that to trade Forex intraday through IB, a minimum $25k is required. Unfortunately, I am not that rich!

Moving on, I looked at some US Brokers and found a broker called MB Trading. 'Good news', I thought; direct access, open account for $500, quality platform (albeit no price ladder) and reasonable commissions. Well, on delving into their website just now I noticed one hitch, - the UK is not listed as a country where they can accept new clients from - great! Presumably, they are not registered with the FSA... I guess this would apply to most US brokers that also offer those mini FXM accounts?

So, the search goes on... I can't be only one that is having this problem. I am desperate to get away from Spreadbetting and I would appreciate it if someone can tell me where I can find a direct access broker with a quality platform without having to stump up the $25k that IB require.

Regards,

Martin
 
do you mean direct access to currency futures, or "direct access" to spot forex?

If you mean currency futures such as those traded on CME then you can open an IB account with as little as $2k.

there is no such thing as true direct access to the cash/spot/forward forex markets for the reasons already trawled over elsewhere on this board, until CME establish their cash forex exchange platform FXmarketspace. The closest thing are the currency wholesale ECN's such as hotspot/currenex/EBS/Reuters. The interactive brokers currency ECN is the only semi-decent retail currency ECN i know of that is generally available to the public.
 
Arbitrageur said:
do you mean direct access to currency futures, or "direct access" to spot forex?

If you mean currency futures such as those traded on CME then you can open an IB account with as little as $2k.

there is no such thing as true direct access to the cash/spot/forward forex markets for the reasons already trawled over elsewhere on this board, until CME establish their cash forex exchange platform FXmarketspace. The closest thing are the currency wholesale ECN's such as hotspot/currenex/EBS/Reuters. The interactive brokers currency ECN is the only semi-decent retail currency ECN i know of that is generally available to the public.
Click to expand...

Thanks for your reply. Forgive me, but I'm still a tad confused...

Essentially, I wish to trade the same underlying Forex market as I have been through my spreadbet company.

I may have miss-heard, but I am sure the guy from IB told me I had to deposit a minimum $25k before I could use them for trading Forex on an intraday basis.
 
peto said:
http://www.interactivebrokers.com/en/accounts/fees/minimumDeposits.php?ib_entity=uk#balance

$5000 to open IB account
$2000 min account balance subsequently
$25,000 min only applies if you wish to do Pattern Day Trading (i.e.4 or more trades in a 5 day period of stocks, stock options or SSF's http://www.interactivebrokers.com/en/trading/marginRequirements/patternDayTraders.php?ib_entity=uk). It does not apply to other futures or FX.
Click to expand...

Many thanks peto, that's a big help. I will speak to the guy from IB tomorrow who insisted I had to have the min $25k. I only spoke with him about FX so not sure where he was coming from.
 
myoung said:
Thanks for your reply. Forgive me, but I'm still a tad confused...

Essentially, I wish to trade the same underlying Forex market as I have been through my spreadbet company.
.
Click to expand...
Arbitrageur is quite correct, there is no single "underlying market". Your spreadbet firm would have made its own market, using prices from one of the wholesale ECN's Arbitrageur mentioned as guidance.

Currency futures are, however, traded on Globex, direct access and an IB account could trade these too, as Arb has pointed out already.
 
$25,000 min only applies if you wish to do Pattern Day Trading (i.e.4 or more trades in a 5 day period of stocks, stock options or SSF's
Click to expand...
I suspect the 25K he is referring to as mentioned by an IB rep is in relation to currency trading on IdealPro, IB's forex trading arm, where minimum trade size is 25k, judging by how he has worded his question if hes asked an IB rep this is what they likely assumed he was interested in
 
25K is a minimal trade size on IDEAL PRO. With 50:1 leverage you need $500 to enter the trade.
 
Last edited:
idetkov said:
25K is a minimal trade size on IDEAL PRO. With 50:1 leverage you need $500 to enter the trade.
Click to expand...

If you did enter a 25K trade with only $500 margin available, would you be liquidated as soon as the price moved against you by 1 pip or is maintenance margin more flexible than initial margin?
 
On the button....

myoung said:
I have been trading Forex based on fundamentals for about a year now through a spreadbet firm and wish to now make the move to a broker who offers Direct Access.

The platform to which I would place my trades would ideally have a price ladder and have the facility to enter position strategies and the normal limit/stop orders and trailing stops etc.

Ninja Trader and IB would have been my natural choice but I have been told that to trade Forex intraday through IB, a minimum $25k is required. Unfortunately, I am not that rich!

Moving on, I looked at some US Brokers and found a broker called MB Trading. 'Good news', I thought; direct access, open account for $500, quality platform (albeit no price ladder) and reasonable commissions. Well, on delving into their website just now I noticed one hitch, - the UK is not listed as a country where they can accept new clients from - great! Presumably, they are not registered with the FSA... I guess this would apply to most US brokers that also offer those mini FXM accounts?

So, the search goes on... I can't be only one that is having this problem. I am desperate to get away from Spreadbetting and I would appreciate it if someone can tell me where I can find a direct access broker with a quality platform without having to stump up the $25k that IB require.

Regards,

Martin
Click to expand...

Martin

IB will be fine.
I urge you to read the attached doc. Very helpful.

Bon chance

Rols
 

Attachments

  • ForexTrading_V01.doc
    794 KB · Views: 954
Last edited:
notouch said:
You're a bit behind the times Herry. Oanda have turned into a complete scam with massive slippage and 25 pip spreads around news releases. They're also not direct access.
Click to expand...

Why do you think Oanda is a complete scam now?
Did you experience any bad things in Oanda?

When news releases, it is normal to see wider spread, although it may be too much if it is usually 25 pips or so.

If Oanda is not good, I just don't know what other good options are available.
IB is not a good choice. It has several problems too.
 
Trader_Herry said:
Why do you think Oanda is a complete scam now?
Did you experience any bad things in Oanda?

When news releases, it is normal to see wider spread, although it may be too much if it is usually 25 pips or so.

If Oanda is not good, I just don't know what other good options are available.
IB is not a good choice. It has several problems too.
Click to expand...

Take a look at the EFX thread. Everyone is talking direct access now - especially EFX/MB. Forget Oanda.
 
Well, it used to be IB bashing, now O&A bashing seems to be very popular. To me O&A are the next best thing to IB or Direct Access. I am awaiting eagerly there ABN-AMRO setup to permit swiss residents to trade DAX, Bund etc... But keeping original acct for 4ex.

Best wishes to all those unhappy news scalpers

Hittfeld
 
Hittfeld said:
Well, it used to be IB bashing, now O&A bashing seems to be very popular. To me O&A are the next best thing to IB or Direct Access. I am awaiting eagerly there ABN-AMRO setup to permit swiss residents to trade DAX, Bund etc... But keeping original acct for 4ex.

Best wishes to all those unhappy news scalpers

Hittfeld
Click to expand...

It's not just news scalpers who get shafted by 25 pip spreads. If you're hoping to fade a news spike you can forget it with Oanda and if you've got a long term position open you could easily get stopped out even though the real market went no where near your stop. Why use a bucketshop when direct access is available to all?
 
I have used quite a few:

1- CMC spreadbets as well as CMC CDF/FX

2- O&ANDA

3- GFT

4- Finspreads

5- Capital spreads

6- IG index

7- MBtrading/EXF

I used all these for FOREX trading. They have good and bad points, but I am sure noone's prfitability is determined by the broker they use. It is certainly easier with some than others depending on what you are looking for, but your profitability is entirely a function of your skills. The sooner you realise this the better.

I have had a good week, so I am in a generous mood :), so I will give you some details.

Findpreads, capital spreads and CMC have the same problems: you can't always trade when you want because orders are rejected or price requoted. Finspreads make a lame attempt to adjust the price in their favour, but it is too lame for words. CMC will give you a pain in the **** if you scalp, but they have tight spreads and if you can't make money trading the EURUSD and AUDUSD with them, you can't do it anywhere else.

O&A should be avoided because their spread changes are absurd. MBtrading are VERY GOOD for scalping but they are also extremely expensive.

If you can make money trading, you can do it with any of the above brokers. if not, the broker will make no difference at all.
 
FXSCALPER2 said:
If you can make money trading, you can do it with any of the above brokers. if not, the broker will make no difference at all.
Click to expand...

You sure got that right!

Differing styles require specific tools. And I guess a good percentage of retailers attempt to achieve their goals via a 'one size fits all' account.

Trying to pluck 1c+ moves running 10-15pip stops will bleed an a/c in record time. Especially whilst trading the Cable.

Most shops will do the job if the a/c is sufficiently funded & managed accordingly.

Hitting off the micro frames however has to be run via STP/ECN, if not, the retail outlets will run you all over town.
 
You must log in or register to reply here.

Similar threads

O
Direct access options broker
2 3 4
Replies
78
Views
14K
urep
U
T
UK FX Direct Access Dealers
Replies
8
Views
2K
TRADERguy
T
R
Direct Access broker?
Replies
2
Views
3K
roguetrader
R
R
Direct Access Elite
Replies
2
Views
2K
RedArmy
R
S
Brokers with API access
Replies
1
Views
2K
Jason Rogers
Jason Rogers
Top