FX/Equity Trading platforms
Discussion
There seem to be a huge number of different companies oferng software/apps to alow you to trade FX and equities from home on your own account.
The thing is I have no idea which are good and which are bad, or for that matter what criteria you should apply to assess this.
Any pointers?
This may be in the wrong section so mods do feel free to move it.
The thing is I have no idea which are good and which are bad, or for that matter what criteria you should apply to assess this.
Any pointers?
This may be in the wrong section so mods do feel free to move it.
if you know how you want to trade, igindex or alpari / metatrader are good systems to consider
if you don't know how you want to trade, start at www.babypips.com I reckon
if you don't know how you want to trade, start at www.babypips.com I reckon
The platform is not important. It is how the 'broker' clears the flow that matters.
General rule is that if the firm has its roots in Russia, Cyprus or Switzerland it will be a rapist.
Next rule, if they use MetaTrader they are also likely to be a rapist.
If they claim to not front the book on the other side but don't offer DMA or something like Currenex they are likely to be a rapist.
As mentioned you also need to decide first what mechanism you will be using to trade these markets.
General rule is that if the firm has its roots in Russia, Cyprus or Switzerland it will be a rapist.
Next rule, if they use MetaTrader they are also likely to be a rapist.
If they claim to not front the book on the other side but don't offer DMA or something like Currenex they are likely to be a rapist.
As mentioned you also need to decide first what mechanism you will be using to trade these markets.
DonkeyApple said:
The platform is not important. It is how the 'broker' clears the flow that matters.
General rule is that if the firm has its roots in Russia, Cyprus or Switzerland it will be a rapist.
Next rule, if they use MetaTrader they are also likely to be a rapist.
If they claim to not front the book on the other side but don't offer DMA or something like Currenex they are likely to be a rapist.
As mentioned you also need to decide first what mechanism you will be using to trade these markets.
Is there then a good way to find out what style of trader I will be. The last time I traded properly was 12 years ago and since then I have just been putting things to a broker.General rule is that if the firm has its roots in Russia, Cyprus or Switzerland it will be a rapist.
Next rule, if they use MetaTrader they are also likely to be a rapist.
If they claim to not front the book on the other side but don't offer DMA or something like Currenex they are likely to be a rapist.
As mentioned you also need to decide first what mechanism you will be using to trade these markets.
I have the time now though to actually trade for myself again though.
Mikeyboy said:
Is there then a good way to find out what style of trader I will be. The last time I traded properly was 12 years ago and since then I have just been putting things to a broker.
I have the time now though to actually trade for myself again though.
It genuinely depends on what you want to do. I have the time now though to actually trade for myself again though.
If its equities and you are going to buy and hold then I'd just find a nice cheap online broker but one without a penny share division or you will be plagued by spank shop calls. Someone like iii are more than good enough.
If you want to do fx then the cheapest way is to spread bet as you can trade below market contract size and they are probably going to rape you on the fills less than an fx broker based in Europe.
Be wary of trading equities at a spread bet firm as they will be making their own price and not the markets. Some have DMA which I would always strongly recommend but even these can be a rouse as the market they are sometimes directly accessing is their own book by the back door
If you can't see it on the LSE order book beat to assume you'll still get fiddled on the fill every so often.
If you want to explain exactly how you see yourself trading then I'd be more than happy to PM you which broker I thought best as a starter.
HI DA,
in short I was thinking of trading indices, Equity and FX in that order. The reason why I'm putting FX third though is more because I have little experience of trading in that market, but would probably feel comfortable enough to do that primarily after a while.
I used to broke Futures many years ago, including some Equity Index futures so have some more understanding of the reasons for movements in those markets.
Any ideas you have I will gladly receive.
Mikeyboy
in short I was thinking of trading indices, Equity and FX in that order. The reason why I'm putting FX third though is more because I have little experience of trading in that market, but would probably feel comfortable enough to do that primarily after a while.
I used to broke Futures many years ago, including some Equity Index futures so have some more understanding of the reasons for movements in those markets.
Any ideas you have I will gladly receive.
Mikeyboy
Mikeyboy said:
HI DA,
in short I was thinking of trading indices, Equity and FX in that order. The reason why I'm putting FX third though is more because I have little experience of trading in that market, but would probably feel comfortable enough to do that primarily after a while.
I used to broke Futures many years ago, including some Equity Index futures so have some more understanding of the reasons for movements in those markets.
Any ideas you have I will gladly receive.
Mikeyboy
Hi.in short I was thinking of trading indices, Equity and FX in that order. The reason why I'm putting FX third though is more because I have little experience of trading in that market, but would probably feel comfortable enough to do that primarily after a while.
I used to broke Futures many years ago, including some Equity Index futures so have some more understanding of the reasons for movements in those markets.
Any ideas you have I will gladly receive.
Mikeyboy
If you want equities, indices and FX all in the one account then the benefits of using OTC over physical are quite prevelent at the start. The two main wrappers for this being spread betting or CFDs (same instrument packaged to market to different clients and different tax and regulatory regimes). The advantages being lot sizes smaller than the physical markets, useful for fx and indices and the convenience of single platform, low margins, easy online and phone support.
The downsides are that the prices quoted are by the issuer/broker and not the underlying exchange so can vary and the product spreads can be a little wider. Arbitrage risk prevents brokers taking the piss on the bid offers but that is not to say that 'slippage' on the close is not a mysteriously common occurance in the industry.
For the equity element I would always trade DMA to remove the exposure to broker slippage. Since the demise of MF Global it is only really IG Markets (the CFD arm of IG) that offer this and at the end of the day if I were trading multi asset OTCs then I wouldn't bother trying to use anyone else.
The OTC FX industry is essentially filthy with a very strong propensity for dishonesty and dubious ethics. Blunt but no point in beating around the bush. It has remained unregulated in many markets and has always been a haven for the book spankers as there is no central Exchange so you can quote what prices you like and tell your customers to do one if they don't like the fills. The vast majority of brokers are run solely as 'book' businesses where the singular objective is to take whatever cash is on a client account and convert it to losses, ie move it from the client account to the company account. It's why marketing is so high as the industry requires an enormous flow of new bodies every day. Many of the dubious practices that exist in the spread betting industry have migrated from FX and the old futures days when they were not regulated either.
The main point, however, is that while you are finding your feet and dertermining best practice going forward I would use a CFD broker like IG so that you can trade on one account, DMA equities, good and more stable pricing and low margins and contract sizes. Plus, by trading CFDs you don't have to bother with the inane terminology that the spread betting side created and stick with the terminology you would recognise from when you traded futures.
There would obviously be the CGT issue, but only once you breached your allowance which once you reached that point you would probably be at the point to look at physical trading anyway for some of those instruments.
DonkeyApple said:
Hi.
If you want equities, indices and FX all in the one account then the benefits of using OTC over physical are quite prevelent at the start. The two main wrappers for this being spread betting or CFDs (same instrument packaged to market to different clients and different tax and regulatory regimes). The advantages being lot sizes smaller than the physical markets, useful for fx and indices and the convenience of single platform, low margins, easy online and phone support.
The downsides are that the prices quoted are by the issuer/broker and not the underlying exchange so can vary and the product spreads can be a little wider. Arbitrage risk prevents brokers taking the piss on the bid offers but that is not to say that 'slippage' on the close is not a mysteriously common occurance in the industry.
For the equity element I would always trade DMA to remove the exposure to broker slippage. Since the demise of MF Global it is only really IG Markets (the CFD arm of IG) that offer this and at the end of the day if I were trading multi asset OTCs then I wouldn't bother trying to use anyone else.
The OTC FX industry is essentially filthy with a very strong propensity for dishonesty and dubious ethics. Blunt but no point in beating around the bush. It has remained unregulated in many markets and has always been a haven for the book spankers as there is no central Exchange so you can quote what prices you like and tell your customers to do one if they don't like the fills. The vast majority of brokers are run solely as 'book' businesses where the singular objective is to take whatever cash is on a client account and convert it to losses, ie move it from the client account to the company account. It's why marketing is so high as the industry requires an enormous flow of new bodies every day. Many of the dubious practices that exist in the spread betting industry have migrated from FX and the old futures days when they were not regulated either.
The main point, however, is that while you are finding your feet and dertermining best practice going forward I would use a CFD broker like IG so that you can trade on one account, DMA equities, good and more stable pricing and low margins and contract sizes. Plus, by trading CFDs you don't have to bother with the inane terminology that the spread betting side created and stick with the terminology you would recognise from when you traded futures.
There would obviously be the CGT issue, but only once you breached your allowance which once you reached that point you would probably be at the point to look at physical trading anyway for some of those instruments.
Really helpful, thanks. I assume then that IG Markets is different to Index from what you've said?If you want equities, indices and FX all in the one account then the benefits of using OTC over physical are quite prevelent at the start. The two main wrappers for this being spread betting or CFDs (same instrument packaged to market to different clients and different tax and regulatory regimes). The advantages being lot sizes smaller than the physical markets, useful for fx and indices and the convenience of single platform, low margins, easy online and phone support.
The downsides are that the prices quoted are by the issuer/broker and not the underlying exchange so can vary and the product spreads can be a little wider. Arbitrage risk prevents brokers taking the piss on the bid offers but that is not to say that 'slippage' on the close is not a mysteriously common occurance in the industry.
For the equity element I would always trade DMA to remove the exposure to broker slippage. Since the demise of MF Global it is only really IG Markets (the CFD arm of IG) that offer this and at the end of the day if I were trading multi asset OTCs then I wouldn't bother trying to use anyone else.
The OTC FX industry is essentially filthy with a very strong propensity for dishonesty and dubious ethics. Blunt but no point in beating around the bush. It has remained unregulated in many markets and has always been a haven for the book spankers as there is no central Exchange so you can quote what prices you like and tell your customers to do one if they don't like the fills. The vast majority of brokers are run solely as 'book' businesses where the singular objective is to take whatever cash is on a client account and convert it to losses, ie move it from the client account to the company account. It's why marketing is so high as the industry requires an enormous flow of new bodies every day. Many of the dubious practices that exist in the spread betting industry have migrated from FX and the old futures days when they were not regulated either.
The main point, however, is that while you are finding your feet and dertermining best practice going forward I would use a CFD broker like IG so that you can trade on one account, DMA equities, good and more stable pricing and low margins and contract sizes. Plus, by trading CFDs you don't have to bother with the inane terminology that the spread betting side created and stick with the terminology you would recognise from when you traded futures.
There would obviously be the CGT issue, but only once you breached your allowance which once you reached that point you would probably be at the point to look at physical trading anyway for some of those instruments.
Mikeyboy said:
Really helpful, thanks. I assume then that IG Markets is different to Index from what you've said?
To the retail trader in the UK they are essentially, two different brands under the one company both staffed with the same people, but Index is spread betting and Markets CFDs. Gassing Station | Finance | Top of Page | What's New | My Stuff