Spread difference - am I seeing things?

[cz4802]

Hi,

I've recently started to look at forex.

I've set up a demo account on FXCM and OANDA. Just want to confirm if I have got this right. On OANDA the spread for EUR/USD is 10 pips whereas on FXCM its 5 pips. So on a round trip (if this is the right jargon) OANDA would be making an extra $100 dollars (compared to FXCM) for doing exactly the same thing? Also, for us to come out ahead we would have to make at least $200 in the case of OANDA - (if that is the case I think we're in the wrong game).

Does anybody out there actually make any money from forex (I am assuming George Soros is not currently online). I suppose what I really want to know is "Is it worth me putting in the time and effort to educate myself to be able to trade forex or am I just wasting my time becuase only the big fish make the money and people like me would just be adding to their profits?"

Also, if this is a 24/7 market why is there no activity from Saturday until Sunday evening?

Regards.

 

[jmreeve]

Does anybody out there actually make any money from forex (I am assuming George Soros is not currently online). I suppose what I really want to know is "Is it worth me putting in the time and effort to educate myself to be able to trade forex or am I just wasting my time becuase only the big fish make the money and people like me would just be adding to their profits?"

Big fish make money from medium sized fish.
You will proabably just line the pockets of whichever market market you decide to place your orders with.

Spreads will narrow in normal market hours.
If you decide to trade FX it would be worth looking Interactive Brokers.

 

[waytogo]

Hi

FXCM spread on eur/usd is 3 pips. In general Ibelieve Oanda's spreads are tighter then fxcm, but I do not have an account with them so cannot give you the facts on that.

The fx market is run by the banking system around the world and is 24 hours Monday to Friday since that is when the banks are open! It is only in recent years that retail customers have been allowed to trade fx.

As in all markets there are a few who are profitable, and a lot who lose money. To be in the first category requires education and hard work.

 

[wannagetstacked]

Spreads were wide on oanda as it was the weekend, they are usually 0.9 or 1.5 on the eur/usd