Comments on: The rise of forex broker spreads comparison sites http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/ Forex Magnates is the home of the Forex Elite providing up to date industry news coverage, commentary and scoops Sun, 12 Feb 2012 11:10:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: MT4 Spreads http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5203 MT4 Spreads Mon, 15 Mar 2010 23:44:40 +0000 http://forexmagnates.com/?p=3301#comment-5203 @Arnaud: MT4 Spreads is something you can use, as you can go back in time and see what the spread was during news. @TradingDiary: Unlike all other sites, MT4 Spreads has (if you have read the subpages) LIVE accounts on all the listed brokers (hidden ofcourse). I don't like to show demo spreads as indeed what you said, they are or can be different then the actual spreads on the live data feeds. Trust me, I've had arguements with a couple of brokers because they don't want to be listed, but I still do. Power to the traders! :) @Michael: Thanks for this nice review. Just helping the trading community here by giving away 100% transparency as too many brokers advertise stuff like "as low as 0.5 pip!!!", which only counts for EU + perfect curcumstances. @Arnaud: MT4 Spreads is something you can use, as you can go back in time and see what the spread was during news.

@TradingDiary: Unlike all other sites, MT4 Spreads has (if you have read the subpages) LIVE accounts on all the listed brokers (hidden ofcourse). I don’t like to show demo spreads as indeed what you said, they are or can be different then the actual spreads on the live data feeds. Trust me, I’ve had arguements with a couple of brokers because they don’t want to be listed, but I still do. Power to the traders! :)

@Michael: Thanks for this nice review. Just helping the trading community here by giving away 100% transparency as too many brokers advertise stuff like “as low as 0.5 pip!!!”, which only counts for EU + perfect curcumstances.

]]> By: Paul http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5202 Paul Mon, 15 Mar 2010 18:52:31 +0000 http://forexmagnates.com/?p=3301#comment-5202 What about commissions? Many brokers/ECNs charge commissions as well as a spread - making the actual spread a lot higher than what is listed. Best Execution is the key factor, which includes spreads, fees/commissions (if any), slippage, requotes and rejected orders. Also many spreads widen depending on the amount you're trying to trade. You need to know if you're receiving laddered pricing or if everyone receives the same price independent of the order size. What about commissions? Many brokers/ECNs charge commissions as well as a spread – making the actual spread a lot higher than what is listed.

Best Execution is the key factor, which includes spreads, fees/commissions (if any), slippage, requotes and rejected orders.

Also many spreads widen depending on the amount you’re trying to trade. You need to know if you’re receiving laddered pricing or if everyone receives the same price independent of the order size.

]]> By: Michael Greenberg http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5201 Michael Greenberg Mon, 15 Mar 2010 09:39:52 +0000 http://forexmagnates.com/?p=3301#comment-5201 Hi Brian, thanks for your comment. I agree that spreads are a differentiating factor but disagree that it's the most important factor when considering a broker. Hi Brian, thanks for your comment. I agree that spreads are a differentiating factor but disagree that it’s the most important factor when considering a broker.

]]> By: Brian Johnson http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5200 Brian Johnson Mon, 15 Mar 2010 08:58:00 +0000 http://forexmagnates.com/?p=3301#comment-5200 "those who do need to look at spreads (highfrequency traders for instance) already know where to go." My bank's wire clerk would beg to differ.. While I'm glad to help all of the FX community, as someone who pays a small fortune per month in spread-related costs, I built FXIntel to especially help traders like me (and based upon the feedback received, it certainly has). I've traded with nearly every major broker/ECN over the years, and while they all have their ups & downs, spreads quickly become a key differentiating factor. I completely agree with the previous commenters, overall trade execution is paramount (spreads, liquidity, latency/fill-time, slippage, etc). “those who do need to look at spreads (highfrequency traders for instance) already know where to go.”

My bank’s wire clerk would beg to differ..

While I’m glad to help all of the FX community, as someone who pays a small fortune per month in spread-related costs, I built FXIntel to especially help traders like me (and based upon the feedback received, it certainly has). I’ve traded with nearly every major broker/ECN over the years, and while they all have their ups & downs, spreads quickly become a key differentiating factor.

I completely agree with the previous commenters, overall trade execution is paramount (spreads, liquidity, latency/fill-time, slippage, etc).

]]> By: Jimmy http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5199 Jimmy Fri, 12 Mar 2010 20:59:11 +0000 http://forexmagnates.com/?p=3301#comment-5199 I agree that spreads on most brokers web sites, micro sites are widgets are a marketing tool that fools many. Execution is paramount 1) a spread you can actually trade on, 2) the speed and slippage around that execution (if the bid is 50, hitting the 50 bid is great, getting filled at a 46 bid is not) and, 3) the reliability that you will get the same consistent spreads all of the time, whatever the market conditions. If you trade via a meta broker expect NOT to get any of these 3 items if you trade in volume or are more sophisticated use an ECN or better still a DMA FX broker where price and spread is more robust. good luck. I agree that spreads on most brokers web sites, micro sites are widgets are a marketing tool that fools many. Execution is paramount 1) a spread you can actually trade on, 2) the speed and slippage around that execution (if the bid is 50, hitting the 50 bid is great, getting filled at a 46 bid is not) and, 3) the reliability that you will get the same consistent spreads all of the time, whatever the market conditions. If you trade via a meta broker expect NOT to get any of these 3 items if you trade in volume or are more sophisticated use an ECN or better still a DMA FX broker where price and spread is more robust. good luck.

]]> By: TradingDiary http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5198 TradingDiary Fri, 12 Mar 2010 18:18:32 +0000 http://forexmagnates.com/?p=3301#comment-5198 The important aspect of the spread is not the listed spread, it is the actual spread you get when you make the trade. I don't see how you could get this information from these sites. You are probably better off talking to people about how honest the broker is when you trade live. I've rather have an honest, reliable broker, than one which is engaged in a spread war with other brokers. The important aspect of the spread is not the listed spread, it is the actual spread you get when you make the trade. I don’t see how you could get this information from these sites. You are probably better off talking to people about how honest the broker is when you trade live. I’ve rather have an honest, reliable broker, than one which is engaged in a spread war with other brokers.

]]> By: Arnaud http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5197 Arnaud Fri, 12 Mar 2010 16:40:45 +0000 http://forexmagnates.com/?p=3301#comment-5197 You are right when you write "I don’t consider spreads as being even in the top 5 of the most important features" I don't search the best spread but the best spread during the news http://www.mataf.net/forums/index.php?act=attach&type=post&id=2728 And I want to see if I can find a trading tool by comparing the medium price between brokers. I think we can make money with a such information You are right when you write
“I don’t consider spreads as being even in the top 5 of the most important features”

I don’t search the best spread but the best spread during the news
http://www.mataf.net/forums/index.php?act=attach&type=post&id=2728

And I want to see if I can find a trading tool by comparing the medium price between brokers. I think we can make money with a such information

]]> By: Pro http://forexmagnates.com/the-rise-of-forex-broker-spreads-comparison-sites/#comment-5196 Pro Fri, 12 Mar 2010 15:38:35 +0000 http://forexmagnates.com/?p=3301#comment-5196 You must understand that the spreads is not what you should look at. It is the brokers dealing desk and how aggressive they are. Anyone that offers you additional 10 or 15 or 20 % bonus are brokers that you need to stay clear of. They offer such a deal because they know that they will get their money back and more... LIVE AND LEARN You must understand that the spreads is not what you should look at. It is the brokers dealing desk and how aggressive they are.

Anyone that offers you additional 10 or 15 or 20 % bonus are brokers that you need to stay clear of. They offer such a deal because they know that they will get their money back and more…

LIVE AND LEARN

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