I dont understand (that is why it would be nice if they respond to questions) so for example when i open IB iIDEAL PRO i going to ask IB if i can get currenex access? And if that is true then what are benefits of me getting that access against trading with IB iIDEAL PRO alone?
the main advantage to using a platform like currenex is the liquidity, you're not trading against your broker, all market participants see your bid and or your offer, not just your scamming broker,LOL, plus you can leave bids/offers above or below the market. the point is that the execution is in order of time, so if you left a bid for 500K at 66 and the current mkt is 73 bid and it starts selling off you will be the first one to be filled if it trades there even for just 100k, you can get partial fills etc...with 99% of retail brokers they will only fill your bid if they say that the mkt is there, you're completely at their mercy and they basically fill you at their discretion. I can guarantee you that if they fill you at 66 its because they can cover at 64, try this broker, capitalforex in the UK offers currenex, pfgbest in chicago does too, currenex will not really respond to retail inquiries, they're focused on larger accounts, no offense. Hope this helps a bit, btw I do not work for anyone mentionned here, i manage a private fund. XXXXXXXXX dot net for your info
I agree with most of what you say but at the moment there are drawbacks on ECNs. There is good liquidity although when it is volatile spreads can go very wide as you are reliant on other particpants putting in bids and offers. With a retail platform the market maker will always be providing a tight price. That is a big difference. Another issue is that, to take your example, you put a 66 bid in when the market is say 73 bid. I am amazed at how few people are actually using ECNs to hit other peoples prices. I often might have a bid at 66 and it is 63 66 in the 'market' but I don't actually get hit until say it is 65 offered away and so someone sees an arb opportunity. It is not that common for the market to be say 66 69 and you show a bid at 66 and get filled without it going lower. I still think ECNs are great but like any platform there are downsides.
It occurs often that I get filled at say 66 and it doesnt go lower, as for spreads widening thats what the REAL market does, besides your brokers how many times do try to pay an offer or hit a bid in a fast market and you get nothing?? Trust me I have traded for a bank(two actually) a hedge fund and on the floor of an exchange. All I know is that its the Real market. As for liquidity I have no concerns, there are over 40! banks providing liquidity and on the euro its very common to have 40-50 Million on each side of the market in a 67/68 mkt, anyways I guess the best thing I can do from here is just advise you to request a live currenex demo(view only) via either the capital forex or pfg or propfx, etc....I have nothing further to add LOL
It is okay I already have a live account. Just pointing out that there are also drawbacks. Thank you for telling me what the real market does though - always nice to be educated! I can't comment on your experiences but from my own it is not often you are filled on your bid or offer without the price changing.
thats because your broker decides to fill you, if you want send me an email to XXXXXXXXXXX will provide you a list of all the banks that use currenex, you'd be amazed, btw which broker od you use???
I thought I made it clear - I use Currenex already (as well as several market markers and other ECNs). My point was that ECNs are good but there are drawbacks with them. I don't think people should be advised ever to deal with just one institution or that any one is perfect - take and use the best bits of every system. To reiterate - with Currenex (who I use a lot) one of their biggest drawbacks is that, in my experience, the amount of people actually hitting bids and offers is fairly limited and more often than not you only get a fill on your bid or offer if the market is trading a better price away. (I have also just re-read your earlies post on this thread - i would dispute that currenex is usually 1-2 pips on cable and 1/2 on eur £ although it is always nearly just 1 on eur dollar). It is a good platform but no point exaggerating. I also see that you have recommended a broker/prime broker that have ceased to exist )
It depends how you access currenex, if you have current access thru your broker i.e. say FXCM you're actually being put on their dealing desk and they'll show you what they want within reason, if you have a prime brokerage agreement with a bank via your broker, for instance my trades get cleared thru ABN ambro via my broker, then you'll get to see all the prices and be seen by all the participants. as for eur/gbp during London and nyc morning its 90% of the time 1/2 pip, no kidding aside. Anyways its always nice to share experiences with fellow traders, just like d to share my personal experience on currenex, I also have used EBS and reuters dealing in the past when i worked for a bank and I am comfortable in saying that is as good as those platforms, Cheers and Merry Xmas to all. regards, Leslie Paul Farkas
Just for your interest I trade with Currenex direct and not via FXCM or any other 3rd party. My prime Broker is RBS. Would be interested in to know how much you pay in total including your PB fee and the currenex fee.