Hello, I am trading Options and e-minis with TOS and am quite satisfied what I am getting there. Considering to do also some forex trading with them I would like to know if there are some of you who can share experience good or bad. The charting is good but how about fills and spread? Thank you
TOS private labels 3rd party forex trading engine... For OTC Forex take a look at Dukascopy... Level II order book, api, executable price feed. With TOS consider trading currency futures and options CME Globex (regulated exchange) ie. 6E, 6J etc..
Thx PocketChange, TOS private labels 3rd party forex trading engine... I think I dont understand what that means, could you explain a bit pls and say whether its good or bad? Thanks for your time...
Just means they stick the TOS brand name on a 3rd party FX system. Overall TOS is decent... ie. http://www.forex.com/forex_white_label.html
As a beginner to forex what are the benefits of each at TOS? EUR/USD - about 2 pip spread ($37.50)@ 2pm ET and no commission - no minimum size - 1.7k margin for 125k deltas /6EZ8 - 1 pip spread and $7 RT comissions - min 125k delta per contract - 4.5k margin for 125k deltas looks like margin goes to the spot, while comissions go to the future. Anything else I should consider? Norm
OTC Spot FX you trade against your dealers feed and order book. They are typically counter party to your trade. Conflicts of interest and an unregulated marketplace... bucket shops.. not implying TOS is this. just a general statement on OTC Forex dealers. CME FX trends and trades differently than OTC spot FX. Transparency and a regulated and centralized exchange provides safety and integrity as well as dealer/broker independence. You can get 400:1 margin from numerous OTC forex dealers... You'll be liquidated and blow out your account trading with such margin. CME FX offers the ability to trade options... only $3 RT per trade... Spreads are wide but interesting to trade or hedge your spot positions.
But it also has it's upside such as instant fills during the most volatile market conditions, low overhead, and the ability to manage/enter trades even at the weekend! Bucketshops hedge aggregate so although as counterparty a conflict of interest exists in theory, in practice it makes little difference. lol, leverage only affects margin requirements, it doesn't mean you'll be liquidated or blow out your account!