Forex and volume

[Broadway]

I am hoping someone with forex experience can help me.
I spend alot of time looking at volumes on aud cad nzd and dx.
I'm currently with IB but the trade sizes and volumes are small compared to what I imagine happens around the world. Dx volumes are extremely thin.

Is there a better option in terms of a forex dealer that can supply charts with larger volumes?

I understand that forex markets are broken up all over the world, but if I was a pro forex trader with millions traded each day, who would I use?
Who would provide the best charts with solid volumes on them? Who do the fund managers use if they were buying and selling currencies?

Thankyou for your time. Any help appreciated.

 

[tayser]

true and accurate volume measurement on FX (swaps) is extremely hard to come by owing to the nature of the market: decentralised and pretty much exists between the main market makers: the banks.

You need to use better equiped platforms like Currenex (although volume will vary between the different currenex "hubs") or some other DMA broker. I've seen a few screenshots of a DMA via Currenex which actually displays the names of the banks which are offering swaps at the specific prices in the market depth.

 

[Broadway]

true and accurate volume measurement on FX (swaps) is extremely hard to come by owing to the nature of the market: decentralised and pretty much exists between the main market makers: the banks.

You need to use better equiped platforms like Currenex (although volume will vary between the different currenex "hubs") or some other DMA broker. I've seen a few screenshots of a DMA via Currenex which actually displays the names of the banks which are offering swaps at the specific prices in the market depth.

thx tayser, Ill have a look at their site.

 

[tayser]

the currenex site only has information about the platform (i.e. it's used to spruik its services to brokers only).

you have to look at specific brokers and whether they offer the platform. I think Halifax are the only AU broker that currently offers it, but probably at the old school entry levels of requiring $100k balances to open an account.

FXDD in the US offer it alongside other platforms. They recently opened a subsidiary in Malta which takes all new account openings with the majority of your money held in US-based bank accounts - they've gone down this path to avoid the US FIFO rules (which pretty much destroys one of the core features of MT4).

Retail forex is growing by the day and brokers are starting to lower account opening thresholds to around the $1000-10,000USD mark.

GoMarkets are apparently going to start offering the platform, but it depends which one... if it's VikingTrader then it's just like another MT4 which means unclean price feeds (manipulated) and brokers actively intervening - best avoided. DMA price feeds through Currenex (FXDD offer it I think, but alas huge initial capital required) are the cleanest price feeds.

The Cyrox pool of scalpers open accounts at FXDD for $1000 with our own narrower spreads & lower commission. Originally it was with ADM Derivatives & through Currenex Viking but it was discovered they weren't the most honest of brokers...

 

[Kryzz]

the currenex site only has information about the platform (i.e. it's used to spruik its services to brokers only).

you have to look at specific brokers and whether they offer the platform. I think Halifax are the only AU broker that currently offers it, but probably at the old school entry levels of requiring $100k balances to open an account.

FXDD in the US offer it alongside other platforms. They recently opened a subsidiary in Malta which takes all new account openings with the majority of your money held in US-based bank accounts - they've gone down this path to avoid the US FIFO rules (which pretty much destroys one of the core features of MT4).

Retail forex is growing by the day and brokers are starting to lower account opening thresholds to around the $1000-10,000USD mark.

GoMarkets are apparently going to start offering the platform, but it depends which one... if it's VikingTrader then it's just like another MT4 which means unclean price feeds (manipulated) and brokers actively intervening - best avoided. DMA price feeds through Currenex (FXDD offer it I think, but alas huge initial capital required) are the cleanest price feeds.

The Cyrox pool of scalpers open accounts at FXDD for $1000 with our own narrower spreads & lower commission. Originally it was with ADM Derivatives & through Currenex Viking but it was discovered they weren't the most honest of brokers...

Im a bit confused, so GoMarkets use currenex for their price feed and not for execution purposes? I thought VikingTrader was a white-label of the Currenex platform? I guess not if it's like a MT4 platform.

How does Interactive Brokers fare then when compared to a true currenex platform then, as many price feeds etc.?

Tayser - still using the cyrox rainbow?

 

[tayser]

They're using an MT4 frontend with a feed similar to or the same as what a Viking Trader frontend (.NET application) would use. Currenex lite which I currently use through FXDD is a java-based client which is pretty much just a dealer pad. I've never used the IB platform, so can't comment sorry.

The rainbow's been superseded by the Dashboard now.

 

[Trembling Hand]

The rainbow's been superseded by the Dashboard now.

Why?

Are you still using that approach?

 

[Timmy]

true and accurate volume measurement on FX (swaps) is extremely hard to come by owing to the nature of the market: decentralised and pretty much exists between the main market makers: the banks.

Well said, Tayser. Any volume measurement on FX is going to be flawed ...
but bearing in mind all the caveats, what can you use?

The very best proxy measure of spot FX volume (and, repeating, bearing in mind all the caveats) is going to come from EBS figures (but will vary depending on currency pair, have a look at this for a quick rundown).

How do you access the EBS figures?
AFAIK CQG is the only way for a non-interbank trader to get spot FX volumes. Hope to be wrong on this.

Broadway, hope this helps.

 

[Broadway]

Well said, Tayser. Any volume measurement on FX is going to be flawed ...
but bearing in mind all the caveats, what can you use?

The very best proxy measure of spot FX volume (and, repeating, bearing in mind all the caveats) is going to come from EBS figures (but will vary depending on currency pair, have a look at this for a quick rundown).

How do you access the EBS figures?
AFAIK CQG is the only way for a non-interbank trader to get spot FX volumes. Hope to be wrong on this.

Broadway, hope this helps.

Cheers timmy, owe ya one.

 

[tayser]

Why?

Are you still using that approach?

it's still the same approach, just represented (simpler & better) in a different format, is platform independent (runs in a browser now) and is also fed by a high quality feed (previous ninjatrader versions were you dependent on getting your own feed) and because of the high quality feed, you pay an annual subscription now.

 

[currenex]

AFAIK CQG is NOT the only way for a non-interbank trader to get spot FX volumes. EBS and Currenex market data can be purchased through Reuters for around US$100/month. Many companies have the ability to provide indicative data from so-called Inter-Bank liquidity. In fact, most of the Currenex White Label customers using either the Viking platform or Currenex Classic (JAVA GUI) demonstrate the Currenex ECN historic data on the charts. Currenex provides all the technology and liquidity, but they don't require brokers to use Currenex ECN liquidity.

Again, there are many places to get interbank liquidity, but you need to do your homework to find out which brokers (i.e., Alpari, etc.) are sourcing Currenex ECN liquidity. I'm also very doubtful AFAIK is actually sourcing EBS. Even if they are, they are warehousing the trades. They certainly aren't hedging straight through on EBS. Let me know your thoughts if you think this is incorrect?

 

[Broadway]

AFAIK CQG is NOT the only way for a non-interbank trader to get spot FX volumes.
I'm also very doubtful AFAIK is actually sourcing EBS. Even if they are, they are warehousing the trades. They certainly aren't hedging straight through on EBS. Let me know your thoughts if you think this is incorrect?

'AFAIK' isnt a company, it's 'as far as I know'.

But thankyou for your other points.

Welcome to these forums.

Do you work for currenex?

 

[oktar]

MT4 doesn't show real volume. It is just a tick volume, not orders volume.