Jep, already using ESignal but not with Forex... You're surely right about filling data gaps... But is the data consistent enough to trade on? There must be always some pips difference between GTIS averaged quote & your trading platform offer...or do I get into the wrong direction? best & TIA cosmic
Trading the standard 100K size, each pip equals $10. You lose 3 pips each time you enter a position (spread). This is why many people trade the futures instead, and pay the commission. Spreads in Euro and even yen are often a single tick, so the effective cost for the trade would be 1 tick = $12.50 + $5 +/- = 17.50 per ct traded. Its cheaper to pay the commission. There are many advs to trading forex however (liquidity and numerous pairs being the most obvious)> JAY
At Hotspot FX you can deal for free if you a passive trader, meaning place bids/offers. It is $3 per 100,000 dealt if you an aggressive trader. Keep in mind that Hotspot is a true ECN meaning no trading desk, so there aren't guys on the other side bucketing or trading against your funds, essentially, no risk being taken by Hotspot. The spreads are relatively good, 3 in EUR, 3 in JPY, 4 to 5 in the rest of the majors, with 10M deep in almost all the majors (CAD, AUD 5M). Keep in mind the spreads at Hotspot will be getting tighter in the near future.
Could you explain why the spreads are so large now? If hotspot is getting quotes from banks around the world the spread at times should be only 1 pip..
On the Intitutional Side the spreads are much tighter, choice to 3 in just about all the majors. The retail platform does not have as many banks on the platform, whilest more banks are coming on board to give a tighter spread.
A question worth of 2 cents: I wonder any banks/institutions would be interested in dealing with so many small retail traders with a number of potential small (odd) orders. I don't quite understand how any FX platform without the backing by a (at least one) major market maker could provide the liquidity generally required by retail traders, particularly during dramatic change of market (who or which one is going to constantly guarantee the execution of a stop order?).
What are the requirements to trade the institutional platform, and why are there two separate platforms? When are these other banks signing on to the retail side? How many are on the retail site now, and how many will there be?
Institutional is credit based versus margin based like the retail platform. You would need a prime broker arrangement.