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Wednesday, July 22, 2009

How to Choose a Broker

I run my demo again today rd3etifapw. I decide to use NordMarkets to run VS_EuroCross (FixedTP). I use the same setting with my previous forward test on Tadawul. There is a significant difference in EurGbp Spread at NordMarkets. It offer 2 fixed pip spread.
It doesn't mean i give a recomendation to use this broker to run my EA. Its only cause I see that seem it price movement close to real feed.
However if you are looking for a good broker to run my EA, then just look their liquidity in the Asian Session. Compare several broker real feed, your first attention to find the highest true range (20 Period ATR). Mostly you will find the broker with 5 digits has higher range then 4 digit broker. Next look their spread. Its good if you can find a fixed spread broker that their spread is less then 5.
ECN Broker
It seem a hard one to find low fixed spread broker and looking ECN broker is the best one. ECN offer floating spread (low) according to market liquidity and mostly give another transaction cost. Thus we pay for commission and spread. If you decide to use ECN broker then make sure their commission is less then 1 pip value per trade size. This is important because my EA calculates the profit in pip. I ever find a broker with really good feed and execution. It has higher liquidity then others broker during trading time. But I forget to calculate their stupid commission. Its equal to 5 pip! Sick. My EA can make 7 positive transactions, but all become negative, because it just 4 pips profit per trade.
Requote
Requote is another aspect that you must think before using a broker. Unfortunately we must trade in real to know it. There is no other way to know how good their execution except to test it directly.

6 komentar:

Jag said...

I tested on Nordmarket... I didn't get fixed spread.. spread got pretty high... demo wasn't bad... I still have it running megadroid with good results

Syarif said...

ECN or Mini?

Anonymous said...

Jag, what's this megadroid ea, where download to test it?

Alan said...

I think you have to purchase it. I read from some forum saying that megadroid is good.

Anonymous said...

Thanks Alan!

LAF12 said...

I suggest great caution when using NordMarkets, because recent very bad reviews at what is the best review site I've found so far:

http://www.forexpeacearmy.com/public/review/www.nordmarkets.com

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