EUR/USD -> 2pips / trade

Discussion in 'Order Execution' started by Darklingg, Mar 26, 2010.

  1. Hello! :)

    I need to send EUR/USD orders (several per day) with a maximum cost of 2pips per rt (on average).
    By cost I mean commission + spread + slippage.

    Is that even possible?
    How could I achieve it?

  2. cvds16


    look at oanda
  3. 4EXJOE


    FXCM active trader.

    .5-1 pip spreads plenty of liquidity so you won't get slipped.

    You will however, pay a commisison.
  4. Get in touch with someone who can put you very close to the interbank Forex market, such as Currenex or Hotspot FX. You want direct access, where spreads aren't being touched by your brokerage. Now negotiate a commission structure where the fees you pay, plus the spreads you're seeing, are less than the value of 2 pips for the size you're trading. Be aware that you'll need a hefty account size to open with either of these brokers, but Currenex is the less stringent of the two.

    Now use only limit orders to eliminate any potential slippage. You're set!
  5. Gcapman


    How do you know it is a commission?

    Does the trade activity report you are able to generate from the trading platform specifically mark out the commission amount?

    Or does FXCM just say that they will tack on an additional __ pips?
  6. FXCM spells out that it charges a per-trade commission on its Active Trader page(s). Google can help you find that. To summarize, for a lower-volume account you're looking at $5/100k, per side, so even MB Trading offers lower-priced commission-based Forex, and without the $25k minimum account size. Don't know how MBT's typical spreads compare though.

    Their (FXCM's) example AT spreads are quite low, and it doesn't seem likely that they would be "tacking on pips" given the target audience of this platform. But I guess they would know best.

    I have a hunch that Currenex could give you a better deal, however.