Lowest spreads on the EUR/USD?

Discussion in 'Forex Trading' started by TraderGreg, Aug 23, 2008.

  1. Where can I find the lowest spreads on the EUR/USD from a solid, reputable broker? So far the best I have seen is TOS (2 pips), Oanda (0.9), and IB. What else should I look into?

    I would appreciate any links to similar threads, or any other forex brokerage information you could offer. Thank you for your time.

    Greg
     
  2. cstfx

    cstfx

    Fixed spread? That's probably Oanda, except during news.

    The best spreads I see on a regular basis is on a hotspot FXi institutional platform. .1 spreads are common. (as in 1.4586 ~ 1.45859).
     
  3. Thank you for your answer.

    How would someone be able to get these kinds of spreads? Would they have to have a minimum amount of managed capital (such as several hundred thousand or millions) or something?

    Again, I appreciate any input on fx brokers.
     
  4. cstfx

    cstfx

    Most brokers will make you go prime to get on institutional platform (FXi) with a min of 250k. However you can now go prime direct with Hotspot (division of Knight trading) for 100k min. You can also try the platform on the retail level for less than 10k with spreads on EURUSD of about .05 to 1.
     
  5. cstfx

    cstfx

    Most brokers will make you go prime to get on institutional platform (FXi) with a min of 250k. However you can now go prime direct with Hotspot (division of Knight trading) for 100k min. You can also try the platform on the retail level for less than 10k with spreads on EURUSD of about .05 to 1.
     
  6. Im only familiar with I.B's forex. Is there a commision fee for hotspot retail and forex trades like I.B or do you just pay the spread?
     
  7. $3 Per USD 100k (not $3 per base currency unit, like before),
     
  8. cstfx

    cstfx

    5.0 is 5mm. Standard size on FXi is 1MM. Standard size on FXr (retail) is 100k with sizes as low as 10k.

    HS vs IB:

    IB pros:
    - cheaper commissions
    - ability to trade futures vs spot in one account
    - account protection with SIPC and Lloyds of London insurance for up to 30MM cash and securities (1MM in cash)

    HS pros:
    - larger (much) liquidity pool on retail (institutional by multiples)
    - ability to close a trade at once (try to push thru a 1MM EURUSD trade on IB and you will see it broken up into pieces because it goes thru it's customers' own book to cross trades before going out into market
    - no dangling balances (search ET for problems closing out IB forex trades)

    That being said, I have seen IB's EUR spread sometimes as low as .0, but generally .5 to 1, almost HS rates.

    They each serve a function for the different type of trader. I use both platforms. I especially like the prospect of hedging futures and spot.

    Just a note, on the HS platform, it's not the prettiest lil' thing out there. In fact, it's a little clunky. But Ninja will connect to them within 2 - 3 months, so that should make things easier, and if you are oe to trade using charts or DOM, then more of what you are used to.

    And yes, all new customers are now paying commissions based on dollar volume, not bcu's. Only those grandfathered still pay the old rate.

    regards
     
  9. Thanks! I will definitely look into this. Is this the site? http://www.hotspotforex.com/

    Also, is it listed in the reviews under the broker section here at ET? I don't see an entry for Knight Trading, Hotspot, or Vcap...

    I appreciate the help.

    Greg

    P.S. I actually just started the application for the demo, but I see I have to be part of a company. For now, I guess it will just have to be buried in my bookmarks (if it's the right site). What other brokers are competitive? Charts are not really an issue, I'm looking mainly for spreads. Thanks.
     
    #10     Aug 24, 2008