Ok, I understand now. As long as you have a reliable platform/connection or telephone back-up yes, a mental stop where you monitor price yourself is better, why tempt them by showing them your cards?
Sorry, only just saw your post. Because Oanda wouldn't fill at that price. They were a reasonable firm at one time but then once they got a place in the business and outside investment they've got worse than the worst.
Can you (or anyone) give an example of the slippage you experience? The bid/ask and how far off they generally fill you in slow (non-news) markets? Thanks in advance, Tim
Hi Tim I don't trade with them any more but 3 or 4 pips slippage was nothing unusual, I've read on their forum that some traders are getting 27 and even 40 pips slippage but I think that's across news. I think it depends on how much money you're making and your style of trading.
Thank you, that's good to know. I'm still ambivalent about using these bucket shops, especially if they can adjust the quotes to a client based on their performance. I've seen slippage in futures but even the AUD and CAD futures were liquid enough for my time horizon. Tim
Not all bucketshops are the same though, some firms such as CMC requote if price moves (sometimes in the trader's favor) which I think is a fairer system, if you don't like the price you simply don't accept it. Oanda operate a 'bounds' system where you can preset the maximum slippage you will accept but that seems like an open invitation to me! Then there are companies like GFT who lock you in a market order and fill you where and when they like which makes trading data like NFP fun :eek:
I noticed during the UK econ numbers released at 4:30 this am that there was a quick bump in the GBP/USD to 10 pips on Oanda. I did not try to trade it, it seemed, as usual, that the price move had already been made. I think, maybe, that some people may try to jump in without actually checking the spread first?