Fixed versus variable spreads

[Stormin_Norman]

no i havent heard of them before.

they look like ava in disguise. http://www.avafx.com

why is your trading method so needing 2 pip spreads that youre prepared to risk more dodgy brokers to get it?

 

[Cam1975]

Thanks for that.


I don't really require a two point spread but I am not happy with the disclosue of the change provided by IG Markets. I believe they intentionally mislead customers under the guise of tighter spreads so I am in the process of looking for a new provider.

I respect the commerial realites of the world and can understand why you wouldn't keep a fixed spread but I want to see if I can get a better deal elsewhere.

Re the pips, it makes a pretty big differance to my bottom line. I did the math and it costs me and additional $5k per week. With those costs its in my interest to do my homework is all.

Re avafx ? Have you heard any bad news on them ?

 

[Stormin_Norman]

if your account is that big (to have 2 pip wider spread cost you $5k a week) then you should be looking at a larger broker like interactive brokers.

if youre keeping at a retail level, check out OandA or FXCM.

 

[Cam1975]

Thanks for that,

I have used interactive in the past as I trade for others and the set up for fee management was pretty good. I will have a look at the others. Thanks for your help.

 

[sinner]

Hey Sinner,

You can't hammer IG to much mate as they held a 2 pip spread I hear till recently. I have been watching the Interbank spread on the AUD/USD and in the morning its never less then 4-6 pips.

So think about it IG hedge the trades paying a 4-6 pip sprread on the interbank and give you 2 pips. That's at a loss to them so you can have a better spread!

I heard CMC had 8 pips on the aud/usd at times this year! So sure they have moved out and its higher but mate I have not seen a locked two pip spread on the aud/usd before.....

Cheers,

Hi Apoc again,

Sorry if I gave the wrong impression. I am happy enough with IG. Like mentioned before, they are quick and dirty and I like that.

Only makes me a bit sad that I have to remove one of the pairs from my list of tradeables. A/U was a fun pair to trade and it will be harder to scalp without being able to set tight stops.

But today is a perfect example of still being able to operate nicely in a low liquidity environment. Just took 10 pips off G/U (opened on a 3 pip spread and closed on 2), during the trade I saw the spread anywhere between 2 and 6 pips!

 

[>Apocalypto<]

Hi Apoc again,

Sorry if I gave the wrong impression. I am happy enough with IG. Like mentioned before, they are quick and dirty and I like that.

Only makes me a bit sad that I have to remove one of the pairs from my list of tradeables. A/U was a fun pair to trade and it will be harder to scalp without being able to set tight stops.

But today is a perfect example of still being able to operate nicely in a low liquidity environment. Just took 10 pips off G/U (opened on a 3 pip spread and closed on 2), during the trade I saw the spread anywhere between 2 and 6 pips!

Buddy you should try trading on and ECN like I am. you just forget trading the morning session unless you trade the eur/usd only! even the e/$ gets to 3 pips plus 8$ comm.

spreads can get very wide!