No slippage during volatile market conditions

Discussion in 'Forex Brokers' started by drasfs, Nov 29, 2005.

  1. drasfs

    drasfs

    Is there any forex brokers that offer no slippage during volatile market conditions, or freeze/lag during these times, for example when the nfp is released.

    Is it otherwise possible to trade directly without using any brokers, and thus getting better spreads, as well as better privacy and comfort.

    Most brokers tell you that they do offer, but in the fine prints you will find something else.
     
  2. Quah

    Quah

    Yes, the same brokers ("dealers" actually) that offer "guaranteed stops."

    :D
     
  3. drasfs

    drasfs

    No. Ive tried a couple of them who promised a guarantee, and they either widen the spread/slippage or dont accept entry orders within a given range.
     
  4. Quah

    Quah

    You are kidding! You mean guaranteed stops doesn't mean guaranteed stops?

    What is the forex world coming to?!
     
  5. drasfs

    drasfs

    The market is still in its infancy and yes, Ive tried 16 different brokers, who all promised.
     
  6. Try an ECN type of platform, you'll get feeds from several banks and better fills than a single dealing desk counter party.

    Here is what will not happen no matter what your broker:

    1. Stops and Limits are NEVER unconditionally guaranteed. If the market gaps over your price then you get filled at the next best price. Why would anyone give you a free ride and take a hit on a trade? They wouldn't, but that’s what a trader is expecting when they ask for guarantees on those kinds of orders.

    2. You won't get spreads tighter than the interbank market. If your broker is telling you that GBP/USD is always trading at 2 pips, you are paying some other way. If its not on EBS at a tighter spread than how are they making money? Either through a commission or, more likely, shading on the price and requoting you. Bottom line is you have to pay somehow so go for reputation and quality.

    Retail traders focus on things that are either unrealistic or silly and the market responds. Just look at trailing stops.

    Trader/God
     
  7. drasfs

    drasfs

    Everything you say is true, but ive also called the broker personally and asked about thic guarantee for which they say is 100% true.

    But why dont every go with an ECN Platform? Because of unawareness?
     
  8. Infancy!!!

    What a crock. They're all a bunch of BUCKET SHOPS, that's all!


     
  9. hi drasfs

    how long have you been trading FX spot?
    have you ever tried FX futures ?
    were these real time trading accounts or
    demo accounts? why the switch so many times ?
    you going to write an article for on slippage
    on stop orders using various retail fx brokers ?

    -The market is still in its infancy and
    yes, Ive tried 16 different brokers, who all promised.-

    :)
     
  10. Yeah, most brokers either are not telling the truth or have a carefully hedged answer about their "guarantee." Drasfs, where did you end up going in the end?

    There are some disadvantages to an ECN and it probably varies by broker, some that I've noticed:
    1. Technology - You need a decent setup to trade well (well depending on your strategy) on an ECN. The prices can update several times a second so dialup is not going to work.

    Most retail platforms have a dealing desk feeding in a price so you can use it with a dialup and you can execute trades with them on the phone if your internet connection cuts out. Many ECN's don't have that option.

    2. Spreads - No spread guarantees on an ECN. Its going to be whatever is in the market. So if the spread moves to 25 or if the banks don't feel like feeding in prices well that’s just tough. A single counterparty on a retail is someone who can take responsibility for a trade and can make sure you will get a feed an execution even if some banks cut out.

    There are a few others but if you trade on news, scalp, or trade size then go to an ECN and you will do better. If none of those apply sticking to the safe world of the retail platforms and a sole counter party is probably a good idea. I could go on, but its depends on the trader which platform is better for them.

    Trader/God
     
    #10     Nov 29, 2005