Getting started in Forex

[nizar]

Thanks for your post Tayser, i really appreciate it.

I don't think there are any Australian-based MT4 brokers, and yes MT4 is a nice little package, but just remember that if you decide to use a faster / scalping-like strategy, you're likely to get the ars3 from any MT4 broker as they're all market makers.

But what did you mean by this?

 

[tayser]

market-makers take the other end of your trade, and when you scalp you're only in the market for seconds, so the broker doesn't have much time to trade against you - i.e you're going to win more than they do, therefore most market-makers discourage scalping.

ECN brokers are merely agents for banks and route your orders to them - like a stock broker routes your order to the ASX and as they don't take the other end of your trade (the bank does), the broker doesn't give two shizzles what type of trading strategy you use because they get a commission.

You invariably pay commissions to ECNs (because they're more a service provider) whereas you pay nothing to market makers (although some do charge commish!) because you pay wider, fixed spreads which have a higher degree of broker intervention (ECN = real banks providing the spreads are a trude ECN also allows you to trade between other people on their network - just like a crossed trade through an ASX broker).

Only market maker that openly allows it is Oanda as far as I know.

 

[Timmy]

Great info Tayser, will you be going down the route of an ECN broker?

 

[tayser]

For execution - yep, starting with EFX - their commissions are among the highest ($50USD per every 100,000USD traded) but it's one of the only options we small traders have.

When account balance permits I'll probably keep EFX open, but also open account somewhere with a broker who offers the Currenex platform (commission ranges a bit some can be as cheap as $25USD per every 1,000,000 traded). I'm nowhere near this stage so haven't done much research into it, but the same principle applies to equities: when you make it big, you dont just keep all your eggs in one basket.

 

[nizar]

For execution - yep, starting with EFX - their commissions are among the highest ($50USD per every 100,000USD traded) but it's one of the only options we small traders have.

When account balance permits I'll probably keep EFX open, but also open account somewhere with a broker who offers the Currenex platform (commission ranges a bit some can be as cheap as $25USD per every 1,000,000 traded). I'm nowhere near this stage so haven't done much research into it, but the same principle applies to equities: when you make it big, you dont just keep all your eggs in one basket.

Tayser,

What Aussie based ECN brokers are out there?
I tried a google search but didn't find much.

Most forex brokers it seems are market makers.
Im not liking the idea of ECN brokers so far, exuberant fees plus the spread, and no link up to MT4, Hmmm....

 

[nizar]

Has anybody here had experience with Alpari?

Their website seems very professional.

Regulation
Alpari (UK) Limited is authorised and regulated by the Financial Services Authority (United Kingdom).
For more details you may refer to the FSA website, using the following firm reference number: 448002, or firm name: Alpari (UK) Ltd.
All firms regulated by the FSA are required to meet strict financial standards, including capital adequacy requirements. On a regular basis, firms are required to submit financial reports to the regulator. These standards are enforced by the FSA, which has the right to fine firms and/or terminate a firm's regulatory status for violations.

Among other things the regulations require that our firm:
Maintain sufficient liquid capital in excess of the amount required to cover all client deposits, potential fluctuations in the firm’s currency positions and outstanding expenses;
Does not include any debt outstanding to the firm as part of this capital;
Undergo scrutinizing annual audit performed by an independent financial auditor. Our annual financial reports are audited by a leading financial auditor in the United Kingdom - Smith & Williamson.
Furthermore, Alpari (UK) Limited holds all deposits with only highly reputable financial institutions.

 

[MS+Tradesim]

For execution - yep, starting with EFX - their commissions are among the highest ($50USD per every 100,000USD traded) but it's one of the only options we small traders have.

Tayser,

EFX is US$5 per US$100,000. You have $50 there.

http://www.efxgroup.com/commissions.php

 

[tayser]

doh sorry

nizar: see my earlier comment about Australia sucking when it comes to FX

 

[Flying Fish]

great thread

 

[Timmy]

Tayser,

EFX is US$5 per US$100,000. You have $50 there.

http://www.efxgroup.com/commissions.php

Tayser - I will join in those thanking you for the great information, it is really helpful to anyone wanting to trade FX.

And thanks for nearly sending me falling off my chair when i saw $50 / $100,000 - dirty rotten scoundrels I thought, they should be Australian CFD brokers with prices like that!

 

[nizar]

Tayser - I will join in those thanking you for the great information, it is really helpful to anyone wanting to trade FX.

And thanks for nearly sending me falling off my chair when i saw $50 / $100,000 - dirty rotten scoundrels I thought, they should be Australian CFD brokers with prices like that!

Haha, yeh i thought the same thing.

Tayser, now I see what you were saying with the scalping and how market makers hate it. Was having a geez at some other forums, and yeh apparently they could place you on manual execution if they disagree with your trading style, so much so that your profitable strategy becomes unprofitable

And thanks for all the great info brother, its appreciated.

 

[nizar]

Also, does anybody know any websites where I can look at some Forex charts in any timeframe that i want. Sort of like a bigcharts equivalent?

Any suggestions guys?

 

[prawn_86]

Oanda perhaps??

 

[tayser]

Any suggestions guys?

NinjaTrader 6.5 using EFX's data will do. I only just got myself setup with Ninja after reading about another scalper on LinuxTRolls forum.

www.ninjatrader.com

just get the free licensed version. Make sure you download the 6.5 beta. Download EFX's latest Navigator (sign up for their demo then follow the links to download the software). www.efxgroup.com

^ ninja chart.

Syafi - a member on the Cyrox (LinuxTroll) forum shows you how to set it up here: http://www.cyrox.com/forum/index.php?topic=8.0

The best thing about Metatrader is the amount of free systems people have out there that you can grab yourself and play with - I still dabble with one (Trend Follower) - I just execute the trades on EFX's demo rather than in the MT4 interface. I still have MT4 up and running in the background when scalping too.

 

[Timmy]

Also, does anybody know any websites where I can look at some Forex charts in any timeframe that i want. Sort of like a bigcharts equivalent?

Try this : http://www.dailyfx.com/charts/

choice of 5 different live charts

 

[>Apocalypto<]

Any suggestions guys?

this is the best of the best Nizar

http://www.netdania.com/ChartApplet.asp

 

[MS+Tradesim]

OK, here's an ECN who charge US$3 per US$100,000 lot. They also allow you to put in your own bid/ask, in other words you don't have to take what's offered! One downside is minimum deal size of 100,000 units of base currency so no use for mini traders.

http://eu.hotspotfx.com/why-hotspot-fx/what-is-ecn/
http://eu.hotspotfx.com/trading-fx/trading-terms/

Limited to 21 pairs currently:
http://eu.hotspotfx.com/trading-fx/currencies/

However, can be funded in AUD:
http://eu.hotspotfx.com/open-an-account/funding-an-account/

Looking good. Anyone have experience with them?

 

[pangea]

Hi,
I am starting out in FOREX and looking for a good system. Can anyone recommend a good trading platform and tipping service for AUD-based account?

Thanks,
Pangea

 

[nizar]

OK, here's an ECN who charge US$3 per US$100,000 lot. They also allow you to put in your own bid/ask, in other words you don't have to take what's offered! One downside is minimum deal size of 100,000 units of base currency so no use for mini traders.

http://eu.hotspotfx.com/why-hotspot-fx/what-is-ecn/
http://eu.hotspotfx.com/trading-fx/trading-terms/

Limited to 21 pairs currently:
http://eu.hotspotfx.com/trading-fx/currencies/

However, can be funded in AUD:
http://eu.hotspotfx.com/open-an-account/funding-an-account/

Looking good. Anyone have experience with them?

Form their website it looks the goods, but i wonder how their spreads are.

 

[MS+Tradesim]

Spreads are great, I've seen them as low as 0.5 a pip. And as I pointed out....you can offer your own bid/ask! You don't have to accept what's on offer. You can put a bid/ask inside the quoted spread. Why? Because you are dealing directly into the real currency market instead of being shafted by a MM.

Their platform is really basic, but I don't care. I'll only need it for quotes and execution. Analysis will be done elsewhere.