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Tim,
One nice thing about this brokerage is that they have a "trial" system
that allows you to basically use their system to place "paper" trades. I
should be able to make a reasonable decision by giving their system a
trial run.
It costs nothing to sign up and give it a try, so I may do so. Another
gentleman on the list mentioned that he actually had good luck with one
of these brokers, so I figure a trial shot can't hurt me.
I believe they only allow you to trade dollar, yen, mark, GB pound and
swiss franc.
Of course, you're correct, just because they take some of the spread
doesn't mean that one cannot trade effectively. I think that most of the
online "cheapo" stockbrokerage firms are making some money through the
spread, so certainly money can be made. Just not SOES style trading. 1/8
over a few days or weeks in a big trend isn't very much...it's the
difference between success or failure, though, for SOES style!
I don't mind trying it for no risk, of course, but the thing I really
wonder is $10,000 a realistic account size to even consider trading
Forex?
Thanks again for all the comments, most appreciated!
Regards,
Joe Balsamo
>
>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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