I wonder if anyone trade at retail forex broker. Because Future is the real market. Nowadays the volume is liquid, never had slippage and rarely not getting filled.(GBP aka. 6B is the only one who act like a**hole)
Of course Futures need more capital than retail forex but I like the movement.
And also the spread is very tight, like there's no spread at all.
I think Yen and Euro Futures is the best day trading instrument I ever had. Trending or Faking almost based on Price Action. Fluid movement, rarely chopped and overlapping candle especially outside US market. The only thing disadavantages is the ridiculous margin requirement. $3750 per contract???
I even get out when I lost $75.
Unlike TF and S&P, a horrible for me. It's like hunting your stop loss. Very hard to trade. You need a wide stop loss or get ready to stopped out three times before going your way.
If anyone who make profit from retail forex broker please share your story. I am not a profitable future trader yet but I am on the way :)
I like retail forex broker because you can trade any size you want. The big thing is spread and it's different from broker to broker. I'm small trader so it's usually better to trade with retail broker. At Oanda eur/usd is 0.9 pips all the time except at important news, then it widens for minute or two. Usd/jpy is 0.9 also. I can't say a thing about futures because I never traded them. I believe that movements are the same, there shouldn't be any difference futures or spot fx.
ReplyDeleteI would like to know what is your cost when you trade futures. When you count in commission and spread together does it beat 0.9 pips per contract in reality?
0.9 pips is less than 1 tick I believe. No, I think it can't beat it. In Futures the bid ask spread is virtually none. Because let's say when the last price 1.2718 at EUR the bid may 1.2718 and ask 1.2719 or 1.2717-1.2718 . There's no market maker involved I think. My commision per round trip $4.95 and per tick for EUR and JPY : $12.5 GBP : $6.25
ReplyDeleteIf you had consistent profit from OANDA then congratulations. maybe I'll switch to that broker for forex spot. The future's margin is horrible. $3750 for after hour session.
However I'm still worried about these "bucket shop" retail broker. Because my trading style using very tight stop loss. It's not funny if my stop being taken out deliberately by them. It's not happen in future market. The chart is so honest that I often get only 1 tick more for being stopped out but not taken out. Let's say my stop buy will be at 1.2716 (I was short) and the price reach 1.2717 and the bid ask 1.2716-1.217 and I am not taken out.
My question : I am doubt if these happen to retail forex then they will be happily taking out my stop. Do you have the same experience?
It's a little more costly that way because at Oanda with on commission bid ask is like 1.27180 and 1.27189, there is fifth decimal. They are really competitive regarding spread. Oanda is generally not in a business of taking stops and I didn't have experience like that, and I know about other brokers that do stuff like that. But you can try Oanda's demo and see for yourself. Maybe the price action will be to jerky and at futures is more fine you can check because I don't know.
ReplyDeleteOne good point for you is that at Oanda you don't have to trade in a lot size of 125000$ per contract for eur/usd. Leverage is 1:50. You can trade for example with lot size 100 000$, or 33 333$. So you open three of those size which is good in gradually getting in or out. Also it's good for money management because you can open position based on how much your stop is away bigger or smaller.
Maybe futures are good for you I don't even want to recommend Oanda over futures because I don't have experience trading futures, I'm just saying that there are o.k. spot forex brokers out there.
Hi FX,
ReplyDeleteSorry for late reply due to my blog error.
I like the Futures because I think it's honest, tight spread, with a big tick in it. 100 Ticks range per day is almost guarantee, esp. for GBP.
50 Ticks per day is more than enough for me. But I may try Forex for longer term trades. $1/pips.
PS: You may demo account the futures and see for yourself.