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Broker For News Trading

Discussion in 'Beginners Bootcamp' started by Doug Dude, Jul 28, 2010.

  1. Doug Dude

    Doug Dude Recruit

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    First, my apologies for probably not putting this in the right section. I'm a newbie, so I figured this was the best spot.

    Anyway, I'm currently with IBFX and think things are great. However, I haven't yet tried trading the news live and I have read some articles about slippage. I would like to know some recommended brokers for news trading... basically ones that don't have slippage or small slippage comapred to others.

    I'm sure it is has been discussed before, but I'm having a hard time finding any information on a good broker to use for news trading.

    I'd also like to know what subscriptions are out there that are recommended and people have been using for news other than bloomberg and reuters.

    Thanks,
    Doug
     
  2. Pharaoh

    Pharaoh Colonel

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    My default answer to finding the best broker for you is here...

    http://www.forexpeacearmy.com/forex-forum/forex-basics-boot-camp/2333-how-select-forex-broker.html


    First, look for a broker that's ECN or STP. Most (not all) of those will allow trading the retrace, and many will let you try spike trading. Ask the broker first. If they say this form of trading is acceptable, check their terms of service carefully anyway. There's no point in making profits if the broker is just going to cancel those profits later.

    If anyone pops up with an answer like "email me for info about the best broker for your trading", there's a very high chance that the person is just an IA/IB trying to get you to sign up.
     
  3. Doug Dude

    Doug Dude Recruit

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    Yea, I went through that article/thread before. Very valuable information, but I was hoping for a list of possible candidates for news trading. I believe IBFX is a market maker, correct? That's a shame because I really like their service.

    Thanks,
    Doug
     
  4. automatedtrading

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    All trading involves a high risk of financial loss, and the information on this site is for general information purposes only and is not financial advice in any form. See your own financial advice before taking any action.

    All forms of trading involves risk of financial loss.

    Note that this site may have paid advertising or commissions generated for referrals to products and services, and forex brokers made from this site.

    See our disclaimer for further information.

    Testimonials and trading results of products and services from some people or users of products, does not guarantee or indicate similar results from another user of that product or service.
     
  5. ibham1

    ibham1 Private, 1st Class

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    If you find a fixed spread \ no slippage broker and you mange to make money just from news trades, chances are the broker will cancel your trades. When news trading with brokers don't let your account get too big, always withdraw profits on a regular basis, also throw in some tech analysis trades.
     
  6. Pharaoh

    Pharaoh Colonel

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    Ibham is right. A lot of brokers will let you trade news, until it's time to withdraw your profits. Then they will suddenly find that you have somehow violated their trading terms and cancel all your profitable trades.

    The best option is to open live (UNFUNDED) accounts at several ECN brokerages and test them. First, ask each broker what their policies are on newstrades, and make sure that what the customer support people tell you is matched by the trading terms (and get screenshots of those). Before even placing a news trade, compare what happens to the spread between the ECN brokers during larger news events. Select one or two that don't have the spread go absolutely crazy, fund the account to a minimum level, and place the smallest possible trade around a couple of news events to test. If you make a profit, withdraw some of the money to make sure they don't plan to cancel profitable trades.
     
  7. melati untuk

    melati untuk Private

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    my opinion is trading with broker support demo account...
     
  8. whiterabbit

    whiterabbit Recruit

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    Every good ECN broker (or even good MM) have larger spread during "big" news. This is because good brokers have market spreads and when crucial news are coming spreads will widen. Sometimes wider spreads last only few seconds, sometimes more if market is extremely volatile.
     

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