Tips for trading at ECN Currenex,Hotspotsfxi

Discussion in 'Forex Brokers' started by picker, Jan 14, 2007.

  1. picker


    Tips for trading at ECN Currenex,Hotspotfxi based on my understanding

    The problem to scalp on hotspotfxi is just liquidity.

    The trouble on Currenex besides liquidity is the so said whitelabel .

    Actually there are 2 tiers of FXPB ( FX prime broker ) with currenex:

    tier 1 : big name leading banks who are on the list of currenex PB

    Clients should have decent fund or credit line with them to handle the business directly with such big name.

    PB will not take any position against clients but only charge commision per Round trading .

    tier 2 : whitelabel partners shown on

    in this group there are 2 business models

    a. pure tier 2 PB

    which means there are just a sub-broker (agent ) to serve smaller clients who are not accepted by tier 1 PB
    SO, same as tier 1 , will not take any position against clients but only charge commision per Round trading .

    b. whitelabel model

    being MARKET MAKER on the platform , they use currenex's platform(technology ) to create an inhouse market while the spreads might be same or differ with the one on currenex's main platform, SO the dealer could direct pass clients' order/position to currenex's main platform or keep them at the in house market as per this makret maker's discretion.
    SO, scalping / arbitraging might hurt such group's benefit .


    To enjoy scalping arbitraging , IMHO the best way is use Tier 1 or Tier 2 a .
  2. Listing several names in each group would be helpful. Thanks.
  3. Ldamiani


    The only example of "Tier 2 b" that I know is FXCMPRO. Is there any other?
  4. siki13


    This has been said many times but how much are we talking about here?
    500k, 1 million , more?
  5. johnmo



    I know CapitalForexPro, ODL and MAN Financial offer Currenex. Are they "Tier 2 a" brokers?
  6. risky63


  7. Risky63,

    Right man ! interesting "biz" :D
  8. well Picker

    can u suggest the best companies uses currenex platform from your point of view

  9. Picker,

    it is one thing to give a classification but
    without names it's in fact worthless for
  10. The Tier 1 PB's (UBS, BofA, Bear, Goldman, Deutsche, Barclays, etc) will all require large deposits to be your PB. At least the ones I know will want AT LEAST $5 million, but for the big names think $20 million or more.

    The White Labels that are Tier 2 (a) are MAN, FC Stone, FIMAT, Capital Forex, PFG, and maybe more but I don't know.

    FIMAT wants at least $3 million, FC Stone near $1 million.
    I use PFG, who I am thrilled with, I must say. I have no affiliation, other than the fact that I use them for CX access. Liquidity is huge, typically $40 million a side in most currencies, even in off-hours. Speed is great. Service great. Prices are good, and spreads are typically 1 pip, even in AUD, CAD, and NZD.

    Tier 2 (b) are FXCM, and maybe GFT but I am not sure. I tried FXCMPRO. That's all I will say here. Even GFT wants $1 million, otherwise they want you to use their Deal Station retail platform.

    There is a new exception to the Tier 1 PB's however, and that is Barclay's Capital. I am talking with them now. Barclays is huge, and their typical PB relationship they want $20 million or more, but they would PB for currency only with $1 million, giving 30x buying power. That's pretty amazing considering the sheer size of them. I have been checking them out, and they are consistently showing $200 million on each side with half or 1 pip spreads in the majors. Again, I have no affiliation, it's just after talking, then meeting with them, I have never been so impressed.

    I will update on the Barclays situation as I get more info, but for now I am very happy with PFG. I think they will open a CX currency account for $25 - 50,000. PM me if you want a contact or need more info.
    #10     Jan 24, 2007