If you are a European trader you would want to look at a firm like Dukas, but if you are a US trader you would want to find a broker that is NFA/CFTC regulated. 2 popular, low spread firms with relatively low opening account minimums are HotSpot (a division of Knight Trading) and IB. You can open an account with less than 10k. The above mentioned firm from the 1 post spammer requires a minimum 50K US to open.
When you can find 0-1.5 pip spreads on the majors on IB, then yes, their spreads suck. Just a reminder to all those looking for a Forex broker, remember to do you due diligence on anyone you are going to give money to. Check their NFA and/or NASD records for any disciplinary actions, check their CTFC financials for financial sound worthiness, and get and listen to the advice of people who have traded with them. If you put your money at a shit firm, the only one to blame is yourself if things don't go the way you want. BTW, if you trade with Gain, you are still going thru a dealing desk, not ECN trading, which means that if you are a news trader and like to get in and out within 30 secs, they will put you on manual execution
Guys does this still happen nowadays, I can't believe Oanda can't speed up thier servers to keep up with prices. Has anyone else experinced this with other firms. I knew a few guys that exploited some brokers with delayed stock prices.
I am very satisfied with the spreads and with the service of my broker MIGFX.CH -- with 5 majors at 2 pips (EURUSD, USDJPYJ, AUDUSD, EURGBP EURCHF) and with a few at 3 pips (USDCHF, USDCAD, EURJPY, CHFJPY for example). They also offer 200:1 leverage, and a unique way of enforcing margins only on week ends. They do require a minimum deposit of $2,000 US, but in my opinion you need this much anywhere to trade profitably. I prefer brokers located in Switzerland like MIG as that country tightly regulates Forex, which we do not in this country. Also Switzerland does not levy any tax on capital gains. I note they will have a booth in the Las Vegas Forex Trading Expo on 9/15-16 at the Mandalay Bay Resort. I'm looking forward to meet them in person, which I have never done so far.
If your broker DOES NOT charge you a commish, then they are a dealing desk and they mark up the spread between the pairs. That's how they make their money. You DO NOT trade directly with the market but rather that broker's dealing desk - they need to offset your trade. So if you are an aggressive trader, having an account with these types of brokers will cost you money because they will put you on manual execution or you will get requote and requote and lose your trade. MIGFx is one of these firms. They have a dealing desk. If it works for you, great, but if you are a serious currency trader (not forex) then you need to find an ECN, which has spreads tighter than any deaking desk because there is not markup and they don't have to offset your trades. And no requotes. Again. MIGFx is a dealing desk forex trader that takes the other side of your trade. Think about this (of any broker) if you are looking for a new brokerage to trade with.
The Swiss may not hit you up with a tax, but if you are a US citizen, then you still have a tax issue. THIS IS US TAX LAW. Ask any tax professional. Or if too lazy, go to DailyFx forums (apologies to Baron) and look thru their tax forum to understand tax implications to US citizens trading currencies. An in depth disussion of currency taxation can be found here as well: http://greentrader.typepad.com/greentrader_weblog/2006/07/forex_tax.html
I don't know anything except what I see personally. I don't think they advertise fixed spreads, but that's what they have given me all the time I have been with them. I looked into no-dealing-desk Forex brokers before I chose the one I use now. I didn't like them. Spreads are merely pennies in my trading -- I can't see why they work so cheap. I don't care if anyone knows my trading strategies. At over two trillion dollars a day, if everyone copied my strategies (never happen!) it still wouldn't make any difference in this market. Anyway, I teach a class in Forex Trading at our local San Jose, CA Senior Center. I teach them my strategies, and they teach me there's. Nothing could be better in my opinion. Strategy is what it is all about. Charles Wilkes