I opened an account with Oanda this morning to run risk-reversals into spot positions. The rationale is the discrete steps allowed by their box options. Seems to me that a lot of coding went into that java app. It's a little funky, but nice to get any charting from an execution app and trading spot + exotic options visually as well.
FM, the way I feel about it, you should download and try every broker's demo platform then go with the one you feel most comfortable with and the one you can make money using. just make sure that their demo experience is identical to their live trading platform. Forex is not like stocks where a broker's demo has to be lagged off the market (for whatever reasons) - no, you can get forex demos that are, tic by tic, the real prices - only the money is not real, nothing else! If the broker's real trading platform performance is not exactly identical to their demo, drop that broker! and move on. best regards, Sam
Trotting out an older post, adjusted somewhat for this interesting and relatively easy request for help in identifying which fx dealer's platform to choose. The answer is in parts: 1) Avoid exchange-traded products, where cold-blooded volatility jeopardizes your money. That means avoiding "brokers" who place your orders on exchanges. "Brokers" aren't dealers. Unlike dealers, brokers don't make the prices themselves. They only place your orders on exchanges, where your order is executed or not according to market forces. Forex futures on the Chicago Mercantile Exchange are an example. CME forex futures are priced according to market forces and, if at any point there are more sellers than buyers for the currency future youâve bought, youâll lose. No mercy. And, believe it or not, your broker will get paid nonethess; he earns a commission whether you win or lose. 2) Scrap together all you have and all you can borrow and open an account with a spot forex dealer. These are the companies that offer platform trading of foreign currencies. These are the companies the poster is asking about (although he confuses them with "brokers"). There are dozens of these forex (or "fx") dealers to choose from, each one with its own platform for trading. At the one you choose, the dealer's algorithms and its dealing desk personnel (live human beings) will move and set the prices, including for specific orders such as stops and limits. No such personal touch with exchange-traded products, the prices of which move strictly according to market forces. 3) Always remember that the fx dealer is there to help, offering a fascinating trading platform free of charge, with juicy extras like charts, streaming news, and commentary. The dealer is giving you access to international finance, and at a pittance of what the big players pony up to participate. 4) Quit your job. 5) Use the extra time you now have to read all the most active posters on boards devoted to forex. Some of those boards, like Moneytec, have an unusually high percentage of posters who make money trading forex. Those traders have developed systems, particularly systems grounded in technical analysis, that consistently deliver profits. Follow those systems in your trading. They can do it, so you can, too. 6) Closely follow each new post of successful âsystemsâ traders. Eventually, the poster will let slip the name of the spot fx dealer he trades with. Thatâs the dealer you want to go with (see item #2 above). Itâs easy to start because that same dealer usually sponsors the board youâre reading. Just click on the dealerâs ad and youâre set.
Skalpz mentioned getting identical performance from demo to real time. Alpari--a dealer--was rec'd by someone and I checked it out. They say demo quotes in one second and real time in 5-15 seconds. Huh? Well, that doesn't sound good...
Oanda offers the best platform, best spread, and best API. But if only they offered 100:1 leverage, they would be the BEST OF THE BEST.
Actually, Oanda's leverage is 50:1 (initial) and 100:1 (maintenance). IB's is 50:1, except for JPY and HKD (30:1). I always wonder about such comments, wishing for more leverage. Say, you are able to net just 20 pips a day, on average, or 400 pips a month... roughly 20% of the daily range. Surely, that's within anyone's reach? If your average trade size is 10x your account size, then you're playing with leverage, at current levels, of merely 12:1 for euro or, equivalently, 18:1 for pound. A fraction of 50:1, let alone 100:1. Then your average monthly return is 40%... you double your money every 2 months or so... and your annual return is 5,669%. Pre-tax, mind you. Assuming (extremely conservatively) that you only compound, i.e., increase your trade size, once a month. Drop down from 20 a day / 400 a month to a more pedestrian 10 / 200, and all you're left with is 20% a month, or 891% a year. Losing your edge and can barely squeeze 5 a day / 100 a month? You'll have to make do with 10% a month / 313% a year. Still think 50:1 leverage isn't good enough? As far wiser men than I have said, "Leverage is not an edge."