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Best FX Brokers
Posted: Mon Jun 27, 2011 10:38 am
What are the top FX brokers I should be looking at to open an account with? So far based on my research FXCM, OANDA, MB TRADING and INTERACTIVE BROKERS seem like some of the best options. Any feedback from the group would be appreciated.
Posted: Mon Jun 27, 2011 11:38 am
I have been with OANDA for 3 yrs and have been very pleased. But I have been considering getting registering as a CTA and they are not set up for dealing with professionals. I have been looking at citifxpro.com as an alternative.
Posted: Mon Jun 27, 2011 11:40 am
thanks LeviF! With OANDA what kind of spreads are you getting on the major pairs?
Posted: Mon Jun 27, 2011 11:41 am
Posted: Mon Jun 27, 2011 11:58 am
OANDA spreads are some of the best I have seen, they beat FXCM by a pip or so for example, I'm surprised they don't provide services for CTA's though.
Posted: Mon Jun 27, 2011 12:02 pm
I hold positions for a long time, so a pip here or there doesnt matter much to me.
Their variable unit sizes allow you to trade a $1,000 account exactly the same as a $1,000,000 account.
Posted: Mon Jun 27, 2011 12:56 pm
OANDA have always been very professional in their dealings with me. I can say that I am pleased with their service.
I also have a Dukascopy account. The plan was to automate my strategy into JForex, but with my small trade frequency, I just do everything manually nowadays. Dukascopy is also pretty good and you can get segregated accounts with them on balances over $250k.
I use both these accounts to mirror strategies and to make sure both brokers' prices agree.
That being said, for any long-term type of strategy with serious money, I would be more concerned over whether the broker will stay in business and how my money is protected. If you capture long-term trends, best spreads become largely irrelevant.
Posted: Mon Jun 27, 2011 1:10 pm
Gunter thanks for your feedback. For my FX strategy I will be implementing more of a short term trading approach with trades lasting from 1-5 days so for me the spreads can make a differense in how profitable I'm to some degree, so of course I'm going to be looking at that as well.
But I agree with you completely that another very important aspect is how safe and sound the broker is, even more so in FX since this is an undustry that has not been regulated like the futures industry so there is more risk. And there is greater concern also because funds are not protected as far as I know and with so many broker/bank failures and the state of the economy this also becomes another major concern.
I guess the questions then becomes what is a good way to determine the health and strengh of a FX broker is with regards to this point?
Posted: Mon Jun 27, 2011 2:21 pm
When I was looking into them some while ago, OANDA seemed to have the biggest asset base. However, that is still no guarantee. I don't know if there are better methods of checking this.
You can spread your risk around, by having various accounts with different brokers. Adds a bit more admin to things, but if you use MT4 with all your brokers, it might be doable. I don't use MT4, so haven't done it personally, but don't think it is impossible.
Posted: Mon Jun 27, 2011 2:53 pm
I'm a CTA and dukascopy looks like it could be a nice option to manage client accounts with, but you said that clients need to deposit a minimum of 250k? that seems pretty high. I just sent them an email about that.
One thing I'm not sure if I fully understand is how they are charging commisions. Since you use them could you give an example of how commissions are being calculated. Thanks
Posted: Mon Jun 27, 2011 4:23 pm
I think you are confusing their PAMM (which is the manager system) with their segregated accounts.
You can custody your funds at a different bank (or banks) and then trade through Dukascopy. This way should Dukascopy go bankrupt your funds are at another bank. The link can be found here: http://www.dukascopy.com/swiss/english/forex/custodian/
Back when I first started, they stated on their website that you need $250k for this, but now I don't see it on the web page. They might be able to provide the answer for you.
If you read through their forums, you can find the information on their commissions. Can't remember the exact details, but it worked to something like 1-2 pips round trip at the maximum rate. I wasn't too fussed about this as I trade longer term.
Edit: I believe they are now closing all US customer accounts, so this might not be an option for you if you are a CTA.
Posted: Mon Jun 27, 2011 4:54 pm
Thanks for update on dukascopy. I'm now looking at www.PFGBest.com
as two other possibilities with tight spreads and the ability to manage client accounts with.
Posted: Mon Jun 27, 2011 8:33 pm
A good resource for checking the financial data of some of the forex brokers is the cftc website. It should keep you away from the smaller, less established fx brokers. --> http://www.cftc.gov/MarketReports/Finan ... /index.htm
LeviF, have you looked int FXManager with oanda?
Posted: Mon Jun 27, 2011 8:36 pm
rossb34 wrote:LeviF, have you looked int FXManager with oanda?
You have to be a CTA to use it, so if i'm going to go the CTA route then I might as well go with a platform that has some back office support.
Posted: Mon Jun 27, 2011 11:02 pm
Great link Ross, thanks.
Iâ€™m happy with GFT and was happy to see that of the Retail Forex brokers they have the 2nd highest Excess Net Capital/Adjusted Net Capital ratio in the April 30 report (72%) and are the 4th largest of the retail brokers.
Posted: Tue Jun 28, 2011 7:39 am
gunter wrote:If you read through their forums, you can find the information on their commissions. Can't remember the exact details, but it worked to something like 1-2 pips round trip at the maximum rate. I wasn't too fussed about this as I trade longer term.
Dukascopy charges commissions on a volume-based sliding scale starting at $18 per $million per side, so about .36 pips per round turn. Also, the trades go through a type of ECN, which mitigates some of the "bucket shop" criticisms of forex dealers. Spreads are 0.5 to 1.5 pips for EURUSD, although they blow out at news time.
Interactive Brokers also has spot forex trading capabilities through their IDEAL system. Spreads and commissions are similar to Dukascopy's.
(Note: I am not a customer of either broker)
Posted: Tue Jun 28, 2011 12:28 pm
After doing some more research and going back and forth between a few of the FX brokers, I think OANDA with it's FX Manager platform has everything I'm looking for as a CTA (thanks rossb34).
Clients can even have balances in the currency of their choice and they are one of the few FX brokers that pay interest on the account. For example right now if balances were in Australian dollar you would get around 4.5%
I think overall they just stand out from the competition with technology, pricing and features and based on the forums comments it seems like those that have had an account with them have had a good experience overall.
Posted: Wed Jun 29, 2011 12:03 am
IB? They don't edge in on the spreads, just a standard commission. Friends n' family, kind... +
Posted: Thu Jun 30, 2011 4:48 pm
Iâ€™ve been an owner and satisfied customer of Trading Blox for about 5 years and I work with the Active Trader Group (ATG) at FXCM. The Active Trader Group is our premium offering for HNW and active traders. We offer customized pricing to meet client needs, in addition to other value added services, and we have multiple options for registered and unregistered money managers.
We also have a Programming Services department that can work with you on building a custom application to automate your order entry from your orders output. As far as finding a broker that will stay in business, FXCM has a global presence with offices all over the world and weâ€™re NYSE listed, adding a level of transparency that few competitors can match.
If youâ€™re shopping around, please give me a call and see what we have to offer.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Read full disclosure: http://www.fxcm.com/risk-warning.jsp
FXCM Client Services
Direct: (972) 535-9020
ATG Direct: 646-432-2970
Re: Best FX Brokers
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