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To the people who are interested in FOREX trading over the net, here are
my thoughts on it.
Now days, from my personal experience, there are some disadvantage in
the net trading. All of electronic trading companies in FOREX market,
except for one, as I know are "market makers." Example:
You find entry that you hope will get you in the right direction.
You want to send the market order through electronic trading system to
get your market price which suppose to match with a dealing rates on you
screen. Dealer sees you market order (that you send through the net) and
he change the dealing price 3-8 points against you entry price (plus
your spread) even if the market does not move at the moment. You could
check this with all major data providers (I have three of them).
There are no rules against this. Forex currency business is not
traded on regulated market. The similar situation with stop-loss
position. Confirmed by my own experience the execution of an order with
Forex electronic system takes an average time of 10 to 40 sec.
Fortunately, as an alternative, most of the electronic Forex trading
companies take regular phone orders as well, which are also reflected on
you computer account. This way if you are not too confident with the net
you could call in the orders. In both situation you are the trader and
if you do not try to predict the market, but rather trade with the
market, and your trade are successful, 3-8 points in your initial
buy/sell price will not make a big deference in Forex trading.
For traders who interested in electronic Forex trading you could check
out these websites:
http://www.forex.com - electronic clearing system
http://www.forex-cmc.co.uk - market maker
http://www.forex-mg.com - market maker
Good Luck
Victor
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