Info for forex traders

Some people get on fine with spot forex providers. I personally, with my own experience, do not. They are not, in my view, suitable for spike news trading, but can be fine for normal technical analysis trading during normal market conditions. You’re always going to get problems with liquidity at news time, but the spot providers that take the other side of your trade get hammered on these trades so they widen spreads AND increase slippage to shake news traders out. As a trader you need to think about where your profit is coming from. In the spot market it, it comes from the broker. In the futures market it comes from other traders.

That is why I have moved over to futures where the slippage and spread (kind of the same thing with futures) can get very wide, hence I only trade with very conservative triggers and only the big mover reports. However, with futures I know that the person on the other side is not trying to trip me up with stop hunting software or slippage/spread widening software – the other side of the trade is simply another trader.

So when selecting a broker in the futures market, you should check for the following

1. Customer service – can you phone them/email/IM? How quick do they respond? How well and promptly do they solve your problems/questions?
2. Interface to the exchange. Do they have servers in the exchanges? Which exchanges? How fast is their connection? This is important for trading news spikes.
3. Software. You need simple, fast software for trading spikes

I personally use Infinity Futures. Speak to Patrick there – I am very pleased with their service and their AT platform.