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Archie Dunbar says
February 12, 2017 at 11:27 am
I really appreciate you making this information available. I have done a lot of trading but I am still learning. I have traded Forex quite a bit. I have only ever traded forex through OandA. I have never had a problem with them. As of today, 2/12/2017 the only forex brokers left for US residents are OandA and forex.com.
You mentioned a couple of times that the spread is paid in and out but actually it is only paid on one side. Assuming stable conditions and a spread of 1.5 pips and OandA is the broker. The chart price on their native platform is based on the mid price. If you want to buy on a stop above the previous bar then you need to realize that you will be triggered when the ask price reaches your stop. This is how OandA does it. If you want to make sure that you are not in the trade before the current bar has topped the previous bar you need to add at least half the spread plus whatever fudge factor you want to your stop price. I usually add the entire spread. so top of the previous bar was at say 1.06110, I will set a stop for 1.06125.
I will be almost always be filled at 1.06125 and the platform has a setting to regulate that letting them know that you will not accept a fill higher than that price. So, now I am long at 1.06125 and if I am scalping I will leave the take profit at my preset 10 pips so I have a limit order to sell at 1.06225. assuming price moves up, when the bid price moves up to 1.06225, I will be filled. The price bars during my trade made a move of 1.06125 minus one half of the spread to 1.06225 plus one half of the spread. So you can see that I only paid the spread one time. On OandA’s MT4 platform it is the same except that the prices bars are based on the bid price rather than mid price.
Futures is no different except that if you want to use a stop limit order you will not have to pay the spread at all. But you risk not getting filled on a high momentum move, which is the move that you want to be in. I am not a big futures trader but at the moment, my fee, all in, round turn is $4.04 on the ES or NQ, $4.48 on 6E and $1.60 on the M6E.
Mike Ourednik says
February 12, 2017 at 11:37 am
The other option for US residents is FX Choice. They are reputable. https://en.myfxchoice.com/
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