I am looking for a Gen3 Forex Broker for auto-trading. My options are :
1. OpenECry (introducing broker for Gain Cap)
2. Gain Capital
3. FXCM
4. FX Solutions
If you have first hand experience with any of these brokers, can you please share them – the good, the bad and the ugly.
Thanks so very much.
- Sanjay
Sanjay, really and honestly being around with trading for 10 years now I can tell you that it does not matter what broker you chose, they are all the same in the end with differences that are to small to matter when it comes to making or losing money. So, no matter what broker you chose the chances are that it will not make any difference for your trading, if you can trade profitably you will do it with any of them and if not, well…it will not be because of the broker I almost can guarantee you that. Chose whatever platform you like the most…my opinion.
With futures trading, I would agree mostly with Paul. Choice of broker probably doesn’t matter. I have used 5 different ones over the years - pros and cons to all.
For Forex, though, I think it does matter.
First, most Forex brokers make the market, meaning you trade against them. This usually means you’ll get screwed once in a while on bad spreads or missed fills, etc. You want a Forex broker who doesn’t do this - instead you want to deal directly with interbank market.
Second, the financial stability of these firms is important. Since funds are not segregated, in case of default, you are treated as a creditor, and you may not get all your money back. Futures doesn;t have this issue. Refco was the prime example of this. It has happened before, and will happen again.
I think if you google “forex broker reviews” you’ll find some decent info. One of the ones you listed gets bashed everywhere I see it.
Kevin
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Without willing to open a debate here, Kevin, really I know a lot of people that lost their money trying to trade the fake market called forex however the reason for losing all their money was never the fake markets fault or brokers fault but their own trading. Anyway, what you said must be taking in to consideration of course but still to deal with the interbank market is not possible for retail traders…unless your Bill Gates or something and you want to play.
Paul - You are absolutely right - for most people their own trading causes their downfall, regardless of broker.
There are forex dealers who provide interbank access for retail. I don’t know how big account has to be though.
That’s why I like trading currencies with futures. I have a lot more faith in the futures clearing system and brokers.
