Hi JDTRADER,
Quality of execution is just as important as the spreads you’re trading on. I can see how advertisements about 0.9 pip spreads or even 0 spreads could be enticing from a marketing perspective, but you can read trader’s experiences in other threads, especially active traders, and the problems they can often encounter. We often hear also about it from traders that move over from our competitors.
With FXCM’s NDD forex execution, there are no re-quotes, no dealer referral, and no restrictions on how close you can place stops and limits to the current market price. These are all tools a market maker uses to manage their risk and often times used to the disadvantage of the trader. A market maker (dealing desk broker) with this type of marketing can give up the spread while counting on making it back through the traders losing positions. When you start actively trading or trading with the trend is when you run into trouble, and it’s funny that you will likely never receive a re-quote at a better price if the broker is truly trying to ensure you receive “the correct market price”.
You won’t run into these problems with FXCM’s NDD forex execution because we’re not making the market for forex transactions. The pricing engine on FXCM’s forex execution automatically takes the quotes from 10+ liquidity providers and displays the best bid/ask with our pip mark-up. The spreads will vary based upon liquidity and market volatility, and you know that you can click on the price without having to play games with your broker over pricing. If slippage is something that concerns you, I would recommend using the At Best vs. Market Range controls built in you can use to limit slippage depending on your preferences. We’re planning an update for the FX Trading Station II platform this month that will give our traders even more control over slippage by allowing you to customize the market range amount down to as low as a fraction of a pip.
-Jason
:clap:
