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Joe:
Careful...I didn't say that what they offered you was not worth looking at.
Think of it this way: You pay a broker to access the clearing firms at the
exchanges and execute your trades. If you can trade successfully on this site's
forex markets, then by all means trade there.
It is fairly routine for cash fx customers that are trading small amounts to
have to deal on wider spreads than someone trading a more marketable amount, say
$10 million cash. The cash markets can have some advantages, although if your
broker offers you good EFPs, these advantages go down in number. One I can think
of, off hand, does this page allow you trade currencies that are not listed on
the exchanges? I mean, if you have a large appetite for risk and you want to
take a swing, can you trade Malaysian or Indonesian?
For small accounts, the exchanges offer most of what you need and the brokerage
isn't that steep. But do the calculations yourself and see how much they are
charging you. I believe the cash brokerage markets that banks trade on these
days have a 1 pip spread. Do the math and see how that sticks up to what they
offer you [I assume you can see before you trade where the cash bid and cash
offer are at? That will allow you to calculate the spread].
I hope that helps.
Best,
Tim Morge
Joe Balsamo wrote:
>
> Sam and Tim,
>
> Thanks for your comments on the "free" Forex trading.
>
> One of the great things about this list is I can always count on
> no-nonsense answers to questions.
>
> I had pretty much determined in my own mind that this was too good to be
> true, but wanted to find out what you all thought about it.
>
> I'm still interested in learning more about Forex trading, though. Would
> appreciate any info from any active Forex traders. How does it compare
> to say equities or futures trading, etc.
>
> Best,
>
> Joe Balsamo
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