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Forex Traders Organize Against Spreads - Stakes Rise in the Battle Against Spreads

Discussion in 'Press Releases' started by Investtechfx, Apr 5, 2009.

  1. Investtechfx

    Investtechfx InvestTechFx Representative - The FPA considers In

    Jan 1, 2009
    Likes Received:
    Forex traders know the significance of a broker's spread; it can often be the deciding factor for the success of a trading strategy. The spreads that Forex brokers charge represent a kind of operational cost, a prerequisite expense of participating in the market. Now some traders have had enough, and are organizing to eliminate spreads.

    InvestTechFX the leading 1 PIP Forex Co. Senior Representative recognized a new grassroots campaign against spreads centering in the LSE (London Stock Exchange) and AIM (Alternative Investment Market) markets. Traders are now taking matters into their own hands and coming together against the high spreads that stifle liquidity and drive away investors. The outcry against spreads and the damage they do can be quantified at killthespread.com, where investors of all kinds are coming together, sharing their opinions, and taking action. Simply voting on the issue allows access to the results- there is no doubt that traders have had enough of not just high spreads but spreads altogether. The critiques make a strong case against the fundamental architecture of a market that relies on Market Makers, which are unavoidably put in competition with the traders and investors who are trying to participate in the market.

    InvestTechFX the worldwide Forex Co. Rep offering 1 PIP on all 6 majors stipulated that the new campaign represents a new level of trader cooperation and unity as well as a testament to the grassroots potential of the internet as an organizational tool. Traders are vulnerable in isolation, but together they can take control and influence how markets operate. Killthespread.com is a sign of things to come, not just for the LSE and Alternative Investment Markets, but for all traders. Professional and armature investors are not going to let their markets go extinct as a result of profiteering, and Forex traders are not going abandon sound trading strategies because high, volatile broker spreads inflate the cost of trading to the point that a conservative trader can't break even.

    InvestTechFX the leading NDD 1 PIP Forex Co. Assistant Rep explained that a "spread" is the difference between the asking price and the consequential offer (bid) to buy that asset. For instance, when doing a long trade for the EUR/USD (buying the Euro), a trader will buy at 1..2555; whereas the selling price at the same time that he is making the trade will be 1.3554. The spread here is 1 pip, which Investtechfx offers for all 6 majors.

    InvestTechFX the leading 1 PIP fixed spread Forex Co. offering MetaTrader4 Representative elaborated that for Forex traders who are targeting modest gains, a broker charging 3 or 4 PIPs (Price Percentage Points, 1 PIP at a $10 value) can be disastrous. Many Forex brokers offer low spreads, it is practically a mantra for the industry, but some traders discover that soon after they have opened an account and started trading, the broker spread climbs exponentially whenever the trader stands to make a profit. A fluctuating spread can poison a trader's ability to calculate decisions.

    InvestTechFX the leading fixed 1 PIP Forex Co. offering MT4 Representative noted that there is a confluence of factors that must be considered by a trader hoping to in order to keep tight spreads. Execution speed and consistency can be a major issue, as delayed or rejected trades can let the narrow window of opportunity slip by. Trading execution is crucial in a market like Forex where timing makes so much difference. A trader must have accurate data to be successful, and that data must be available in as close to real-time as possible. The bid and ask price are only part of a greater equation that includes variables like execution speed, consistency, trade volume, and the real spread that a broker charges. InvestTechFX offers an unprecedented fixed spreads 6 major currency pairs, allowing traders to focus on the market and trade with transparency.

    InvestTechFX the leading 1 PIP Forex Co. offering MetaTrader4 Rep reminded traders that a broker decision should not be taken lightly, and that a broker's demo account does not necessarily operate with an accurate representation of true execution speed (demo accounts may show instant execution, then slow down once they go live with actual money). InvestTechFX encouraged traders go get the real facts about a broker before opening account, and suggested asking if spreads are variable or fixed, if spreads change depending on ticket size, if there is a difference in execution speed between real and demo accounts, and if there are any exceptions or restrictions regarding opening positions. A trader should know a broker's real details to make an accurate comparison. InvestTechFX is a No Dealing Desk that never operates against traders and works directly with a clearing partner.

    InvestTechFX the leading 1 PIP Forex Co. Rep offering 1 PIP fixed spread on 6 majors makes trading easier by offering fixed, 1 PIP spreads on 6 major currencies in conjunction with the MetaTrader4 trading platform. This combination of technological and financial resources allows traders the edge and transparency that is so essential for consistent success in the market.

    InvestTechFX the leading worldwide 1 PIP Forex Co. Rep noted that Investtechfx is a No Dealing Desk broker that works directly with a clearing partner. InvesttechFX is now offering an unprecedented 1 PIP fixed spread on all 6 major currency pairs.

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