I'm about to open an account with them. I tried the demo platform and it left a very good impression with instantaneous fills and execution. But usually the problems appear later. Would need some input on hotspot fx. What i know: *ECN broker *Spreads on eur/usd: 0.5-2 pips(usually 1pip). They widen sometimes to 30pips, which i saw. Would that mean that I would be back 30pips on an open position, or that my stops would hit, if the spread exceed the stop loss? *transaction cost: 3 Dollar/1lot each time. *Hotspot fx are counterparty to all trades *they claim to have a straight through processing model * Orders don't work too well, since they are an ECN type of broker. *They deal with big institutions,hedge fund managers etc. with their Hotspot "FXI" platform. *They recently got bought by knight capital *Minimum deposit 7500 dollar *Minimum trade size: 1 lot *Leverage 50:1 *Under regulation by NFT(not sure), and som other party that I dont remember the name of. * Have about 5 million in capital,barely meeting the minimum requirement. * On phone, they told me i could trade however i wanted, and that they didnt care, since they are an ECN type of broker. * They get liquidation from about 10 banks.
Anytime you have an open position and the spreads widen, you'll be stopped out if the spread passes your stop. Usually spreads don't stay wide for more than 30secs to a minute on most platforms. Have a news calendar handy!
ANYONE who tells you stops can be avoided during news is full of bs..........be forewarned.........that goes for any market .... any broker.
Just to clarify, I believe you mean $3 per $100k, correct? "Per lot" implies any currency, which wouldn't seem accurate.
How can they be an ECN broker when according to what you have written they are the counterparty to all trades?
bugscoe: As i thought. However, one has to find a way on how to hold longer positions without stops getting hit. The only way as I see it, is not to trade too leveraged. In that case you could handle temporary spreads that widen. Short term trading: as you said, have a calender to look at. Trader KGB:yes, that is the right way.
Hotspot FX -------> ECN AND counterparty?.....somethings not right. I use MB Trading for forex trading.....they are are true ECN. They dont have company traders trading against you. They charge a flat fee per lot traded. But I use ACM demo acct for charts, especially for their s/r levels tech tool.
"instantaneous fills and execution" - well of course, it's a demo!! "Hotspot fx are counterparty to all trades they claim to have a straight through processing model - contradiction, how can they be STP orders but still counterparty? "Orders don't work too well, since they are an ECN type of broker" - What "They widen sometimes to 30pips Would that mean that I would be back 30pips on an open position, or that my stops would hit, if the spread exceed the stop loss? - Stops have nothing to do with spread, it's price which triggers your stop! Jeez drasfs, I thought you said you had been trading for years?
cabletrader: I've only been with brokers with fixed spreads. And orders dont really work well on the hotspot platform. I only want some input on hotspot fx.
Exist not pure agency by FX spot Hotspotfx ,mbtrading trading against you ... You must signature ,that accept that by client agreement That woul decisice for court ,CFTC not lies from ma rketing department . Belov is example ,MBT open public lies ... 1. http://www.elitetrader.com/vb/showt...ency#post901337 MBT-Steve MBT Trading Registered: Apr 2005 Posts: 171 11-17-05 10:01 PM Milstar, To help save time for everyone the MBT spot forex is pure agency. Regards, Steve ###################################### 2. http://efxgroup.com/f/Comprehensive...Application.pdf MBTF as counterparty - ...MBTF and its affiliates may also undertake proprietary trading activities ...