Can u guys recommend some news trader friendly brokers? . I need it because some Spot FX brokers do not like news traders and consider them "toxic" because they use some sort of arbitrage in pricing between the feeds. Those brokers sometimes do not pay or just simply increase spread for a particular news trader.
Thx Peter, my system is forex news based, I am totally green about forex futures? is the chart identical with spot forex?if it is not identical how do i trade forex news with futures?
The charts are mostly identical. You can compare them yourself on Tradingview, EURUSD for FX and 6E for the euro futures, as an example.
I'm not exactly sure what you mean by news trader friendly brokers but Interactive Brokers FX is an ECN model, no spread widening, true spot and tight spreads.
you mean IB is totally ok with news trading in long term? i use news trading with buy/sell stop prior to news release. Some brokers dont like that
Forex Futures and spot forex are almost same. But you can only trade $ crosses on futures. No Eur/jpy, GBP/jpy, AUD/Cad etc... The main Advantage of futures over forex is that you broker is a middles man between you and the exchange and will only earn a certain commission on every contract you trade... But in spot Forex, apart from earning from commissions and wide spreads, the brokers also sometimes try to make more money by taking the other side of your trade and pocket your loss... That is conflict of interest... and you know they have the ability to manipulate price feeds if they want to...
I don't see a problem. Peter10 above is talking about bucket shops. IB is not a bucket shop and has a number of banks and market makers making markets on the various FX pairs. IBKR does not trade against you, manipulate price feeds as he states some FX providers may do above. We charge a transparent 0.2 pips commission. When you place an order you get the best available price from the one offering the best price. Note, the banks will widen their quotes or move quickly during periods of news so be careful with stops and I'd even suggest stop limits. I suspect it is not as easy as you think though as they wouldn't be making markets if they gave money away easily.
I dont only rely on news, I also use PA and correlation, if all 3 are in alignment , I place buy/sell stop order with stop loss.