At the risk of stating the obvious, it's worth noting that spreads and platform features are just 2 factors out of many, many more. Some of those could actually be more important. In fact, the relative importance of each factor really depends on who you are and how you trade. Want a few?... off the top of my head: underlying dealing model; reputation; regulatory record; dealing practices; capital safety; multi-client interface; reporting; trading hours; customer service; company attitude; online user community; emergency phone access; platform reliability; software stability; spreads during different times and market conditions; order placement; order types; trade management; slippage; commissions; min trade size; max trade size; RT position display; RT P&L display; currency pairs; hedging or sub-accounts; automation and API; 3rd party apps; and still more. In a head-to-head comparison, Oanda and IB each has a number of advantages and disadvantages compared to the other. Many of them have been discussed on ET at length. As always, I think each trader needs to do their homework, including hands-on experience. Then weigh all the relevant factors, based on your individual needs -- who you are and how you trade, before making an informed decision on broker's choice(s). Yeah, I know, it's a major hassle. Why can't everything be black-and-white?
late apex :"Why can't everything be black and white ?" Because life is everything between black and white !
Umm... yes. Life is usually complicated, nuanced, not black and white. That was exactly my point, ironically speaking: To get back to the original post to which I replied, making a sweeping generalization like (paraphrasing) "broker X is a no-brainer choice over broker Y" in this particular case makes no more sense than stating "ET is a much more useful trading forum than ** forum" or "Porsche is a much better car than BMW" or "Maria Sharapova is much hotter than Anna Kournikova." Oh, wait, one of these is a no-brainer.
That seems to be an interesting labrynth to crack...In the event of a BK, wonder what happens....hmmmmmm...
Hotspot is an ECN which has a huge bearing on it's cash position. They do not take the opposite side of anything. They simply connect traders and liquidity providers. Their larger platform is the institutional ecn---which has larger size and tighter markets. You have to have a prime account for that side of their business. But that is the main side of their business. Look at their partners. I do not know if Hotspot is actually 2 different companies??? But there is a HUGE difference between their institutional platform in regards to size and spreads are tighter as well. (the size is 10x's greater last time I checked it out).
A couple of points. If the institutional Hotspot platform went into liquidation then the trader has no exposure apart from maye not having to pay that month's fees. No cash aprt from fees goes to Hotspot and any exposure is to your clearer or prime broker. I imagine that the opposite is true for the retail platform but am guessing. However I would very much doubt they are in financial trouble as they were recently bought. On the insitutional platform the spreads are poor compared to currenex and maybe even lava. For example although the euro dollar is usally 1 pip wide this is quite often in only 1. If you want to deal in bigger size then he spread is wider. Currenex is 1 pip in about 25mio usually, depending on your hub and PB.
Last I saw the Hotspot insitutional platform was when they were introducing Hotspot on TT. The institutional platform/market had been on TT for a while. It was 100mm each way and a pip wide. Something must have happened since then or they were running a game. Everyone I was standing around was impressed by the liquidity. The retail platform is 1-2 pips wide at best and 10-15 million =or at least last I looked. I found IB to be a better ECN for my needs. I still like currency futures a great deal--especially for scalping and on numbers. Maybe it is because I have been trading futures for so long. Although, I got great fills on the number last friday with IB. I had to wait and extra 7 seconds for my fills over the futures ---but they were good. IB is also at half pips for EUR/USD and USD/JPY. I am going to demo Currenex. It all depends on what the actual trader wants to do.
Hi, Would you be willing to talk about your currenex experience? how it is different from say, IB or Oanda.... Thanks, Kali
Not bad system, hearing rumours that they are taking spread on clients without telling them and charging brokerage...could be v expensive...