**FOREX EDUCATION: Forex Brokers Analyzed (3 added 7 total)**

[mister_doodi]

Interbank is starting to piss me off. Lost potential 9 pips on my live account so far because they wont let me enter a trade.

[reggiek1112003]

Has anyone here had any experience with COESFX?

[mister_doodi]

Check the useal plances first.

1. NFA website. http://www.nfa.futures.org/basicnet/...03&contrib=NFA (Coesfx and Spot FX are same company) It looks like Coesfx is having customer cash account problems.

2. Search google using the following context. Coesfx review
Check out links from forexbastard and fx-review but don't put too much weight on it.

3. Go to http://www.elitetrader.com/br/ and read more professional reviews.

[Blooey]

Has anyone tried using IB for forex? I use IB for stocks and thought if they're any good, I might give them a try for a bit of dabbling in forex. I don't really understand their commission structure though. Seems they charge a very small pip spread, plus either 1 basis point, or 0.2 basis points, depending no the platform you're using. Assuming I end up using the expensive of the two and end up paying tight spread + 1 basis point (1 basis point=0.0001), is that a rip off or is it good?

Also, is there a $25k minimum account balance requirement to pattern day trade in forex, or does that only apply to stocks and futures?

[wolf825]

Originally Posted by Blooey

Has anyone tried using IB for forex? I use IB for stocks and thought if they're any good, I might give them a try for a bit of dabbling in forex. I don't really understand their commission structure though. Seems they charge a very small pip spread, plus either 1 basis point, or 0.2 basis points, depending no the platform you're using. Assuming I end up using the expensive of the two and end up paying tight spread + 1 basis point (1 basis point=0.0001), is that a rip off or is it good?

Also, is there a $25k minimum account balance requirement to pattern day trade in forex, or does that only apply to stocks and futures?

No daytrading rules apply in Forex and you can go long or sell short as much as you wish ...and account minimums will vary by broker but you can make 50 or more trades per day on a $250 mini acct for most of them.. As long as you have the margin unused you can trade 24hrs to your hearts content.

The comission spread is normal and built into your trade for most brokers--and is by the pip spread between the buy/sell quotes...once you are in profit and trading and you will not notice it at all...

Be careful--Forex trades and moves waay faster then stock stuff...may want to practice on the free demo accounts first that every broker offers. Best of luck and if you have any questions or need help--just ask...

-w

[Blooey]

Thanks for the reply Wolf.

About the commissions, IB seems to have a different take on things. Their pip spreads are very small. For example, right now EUR/USD is 1.3458/1.3459, USD/JPY is 123.8400/123.8500, etc...

These are 1 pip spreads, right? However, as I said they charge a 1 basis point commission on top of that. 1 basis point = 0.0001, but I'm not entirely sure what that means. Anybody know?

Say I buy 20000 EUR at 1.345 and then sell them at 1.36. The buy and sell alone would mean I made $300, but I don't know exactly what this 1 basis point commission means. Is that 0.0001 the same value as one pip?

[wolf825]

Originally Posted by Blooey

Thanks for the reply Wolf.

About the commissions, IB seems to have a different take on things. Their pip spreads are very small. For example, right now EUR/USD is 1.3458/1.3459, USD/JPY is 123.8400/123.8500, etc...

These are 1 pip spreads, right? However, as I said they charge a 1 basis point commission on top of that. 1 basis point = 0.0001, but I'm not entirely sure what that means. Anybody know?

Say I buy 20000 EUR at 1.345 and then sell them at 1.36. The buy and sell alone would mean I made $300, but I don't know exactly what this 1 basis point commission means. Is that 0.0001 the same value as one pip?

I am not familiar with the basis point commision setting... Interactive Brokers has this page to describe things.. http://www.interactivebrokers.com/en...?ib_entity=llc

While you may get a tighter spread--I am not a fan of or familiar with how these additional commissions are calculated..whether its off your trade or trade size or profit, or off the days volume or only when you have rollovers or what.... But think of it this way--if you are trading a mini-account with a regular broker, and you are trading EUR/USD who's pip spread is 1.3456/1.3459 is a 3 pip spread--you "pay" that 3 pips or $3 on a mini acct--the pair needs to move that spread plus an additional pips for you to see profit...why should you pay that spread plus a percentage...? I'm fine with spread commissions..but then my pip profit tarets area 30pips-150 pips in profit target per trade I do..

Perhaps someone else can provide better detailed answers on additional basis point commissions and how they are calculated...cause I am just not familiar enough with its reasoning.. to me, a pip is a basis point--and why add more commission fees to the already existing spread unless its to make SOUND like you get a better deal when you are really paying the same as every other broker with a higher spread.
-w

[Blooey]

Yeah, I don't understand it either. However, I did notice that when I bought 20,000 EUR, I paid 2.50 in commission. Same when I sold it. So, that was the one pip spread plus the $5 in commission to buy and sell. Not sure this is such a good deal.

Also wanted to add that while I love IB prices for big board stocks (and pennies if you play small lots), their customer service is not only practically non-existent, they are ignorant jerks too. Every time I need some help in trying to figure out their crappy software, they never explain things properly. I swear it's as if they don't even understand the questions. Ah, I so want to reach through the computer and strangle the hell out of these a$$holes!!!!

[wolf825]

Originally Posted by Blooey

Yeah, I don't understand it either. However, I did notice that when I bought 20,000 EUR, I paid 2.50 in commission. Same when I sold it. So, that was the one pip spread plus the $5 in commission to buy and sell. Not sure this is such a good deal.

Also wanted to add that while I love IB prices for big board stocks (and pennies if you play small lots), their customer service is not only practically non-existent, they are ignorant jerks too. Every time I need some help in trying to figure out their crappy software, they never explain things properly. I swear it's as if they don't even understand the questions. Ah, I so want to reach through the computer and strangle the hell out of these a$$holes!!!!

Yeah I run into that a lot from some brokers..clueless some of them are.

When it comes to Forex trading--there are a wide variety to choose from and many are very reputable and good to deal with and very simple for you to use.. Every Forex broker you deal with should be listed by the Commodity's Futures traders Assoc...and should have a clean record. Stick with the major brokers if you can, who are in the US and have regs to abide by, and make sure you check them out with other members as well as test their platforms and service before you give them a dime. Places like GFI, Forex.com, FXCM, InterbankFX and several others here listed in this thread are your better choices IMHO for strictly Forex trading.... There is waay too much money to be made in Forex trading to give in to an overseas or shady or higher priced broker just to get a tighter spread. If you play Forex well and smartly--the spread you pay per trade in a pair is infitecimal to the amounts of $$ you can make in a good solid trade...


-w

[Blooey]

Oh my God! IB suuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuucks!!!!!!!

I was doing forex and all of a sudden my screen went blank. I'm like wtf? Of course, these bastards don't do customer service after market close, so I check the website...

Depending on which market you use, ideal or idealpro, the market shuts down either for 2 hours or for 15 minutes.

Is this normal?