Author Topic: US Brokers  (Read 9672 times)

Offline admin

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Re: US Brokers
« Reply #15 on: May 08, 2009, 06:30:39 AM »
Spread is paid on both the entry and the exit, it is "split".

Consider this (prices simpilied):-

Current Quotes: 97 - 100. Here you can see a 3 pip spread.
I want to buy this currency. I have to buy at 100. The 'real' underlying price is likely to be somewhere in the middle of the spread, e.g. at 98, 98.5, 99, not necessarily exactly in the middle but in there somewhere. Say the real price is at 98.5, you can see therefore i have paid 1.5 spread entering the trade.

I now want to exit. The price hasn't moved at all but i'm bored and want out. I have to now sell for 97. On the exit i'm losing another 1.5 pips in spread, for a total of 3 pip spread paid.

Consider what happens if spread widens:-
Current Quote: 97 - 100.  I buy at 100 and pay my 1.5 pip spread as above.
When i want to exit spread has increased. The quote is now 90-100. Lets say the 'real' price is at 95. I pay 5 pips to get out. My total spread was 6.5 pips.

Although exit spread does have an impact, it is not something you can really control, you are in a trade and have to get out at the right point, no point hanging around for a lower spread. Before you have entered a trade however you have the chance to either enter or not based on the spread.

re. connection, i'm not sure what you are seeing, but if everything is working and there are no errors in your journal tab then do not worry. Some brokers show red connection bars for good connections, red over green, green over green, blue over green... hehe.
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Offline Colleen

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Re: US Brokers
« Reply #16 on: May 12, 2009, 11:40:10 AM »
Shouldn't we open up a topic for FXCM like all the other brokers? - I think I'm going to open a new topic for FXCM now...

I'm with FXCM US - have 2 accounts with them and am very pleased...

The spreads are variable but manageable for trading; sometimes it doesn't trade MegaDroid because the maximum spread for that ea is 3 and with the variable spread FXCM US uses, it does not enter a trade...

Start up cost is $1,000.00, customer service is GREAT and if you use the referring broker "The Aslan Group" you will get monthly rebate checks in your Paypal account just for trading...

If you're a member of FapTurbo forum, just check under Brokers, FXCM, after page 3 you'll find Kevin from the Aslan Group outline the rebate program and answering any other questions about FXCM there...

Just my 2 cents...

Colleen :)
« Last Edit: May 15, 2009, 04:46:15 PM by cd.1963 »
Earn $ Rebates just for Trading Forex with The Aslan Group


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