[Cory2679]

I currently trade with oanda. It is well known that oanda spikes their spreads around news events.

I currently trade the EUR/USD from 8:20AM - 3PM Eastern Time. During those hours the spread usually spikes multiple times, resulting in anywhere from 5-10 tick spreads for a few moments.

I'm not caught off guard...I monitor 3 separate economic calendars and make sure I'm out of the market for any news labeled "high impact," "market moving," "high importance," etc.

However, I do miss out on opportunity due to the fact that several times during the day I can't participate.

So, my question is:

Is it the same way with ECN spot forex brokers, such as mb trading? Basically, can you hold through news without worrying about the spread spiking (during normal market hours)?

I understand events like FOMC announcements can throw off just about anything, including futures, but I'm talking about the every day "high impact" news events...

Thanks for the help,

Cory

[daedalus]

Not in the least. mb trading spikes spreads just as much as anyone else.

[fxThunder]

Originally Posted by Cory2679 »

I currently trade with oanda. It is well known that oanda spikes their spreads around news events.

I currently trade the EUR/USD from 8:20AM - 3PM Eastern Time. During those hours the spread usually spikes multiple times, resulting in anywhere from 5-10 tick spreads for a few moments.

I'm not caught off guard...I monitor 3 separate economic calendars and make sure I'm out of the market for any news labeled "high impact," "market moving," "high importance," etc.

However, I do miss out on opportunity due to the fact that several times during the day I can't participate.

So, my question is:

Is it the same way with ECN spot forex brokers, such as mb trading? Basically, can you hold through news without worrying about the spread spiking (during normal market hours)?

I understand events like FOMC announcements can throw off just about anything, including futures, but I'm talking about the every day "high impact" news events...

Thanks for the help,

Cory

Hi Cory,

Open a demo account with mb trading and do a side by side comparison. I have been very impressed with them in the few days that I have been doing that myself.

Cheers,
Fxt

[Cory2679]

Also, I used mb trading as an example but I know there are some others out there, such as interactive brokers...

[sicktrader]

What sources do you guys use for the news. I use dailfx and forex.com, and verify us news with econoday. Thought that there may be better out there.

[Cory2679]

Originally Posted by sicktrader »

What sources do you guys use for the news. I use dailfx and the forex.com, and verify us news with econoday. Thought that there may be better out there.

I use Econoday, DailyFX, and Forex Factory.

For a while I was only using Econoday and DailyFX, but there was a spread spike with oanda that wasn't labeled "market moving" or "high importance" with either of them, and it was with Forex Factory, so now I watch all three.

[Kiwi]

With interactive brokers, spread spikes are caused because the participant banks and your fellow speculators have pulled their orders. Such spikes seem to be smaller than with bucket shops (although they are there, and for good reason) and are much shorter in duration.

I use forex factory news. Because I care about news outside of the US zone I also check:
Forexnews.com and
Google Translate

[Cory2679]

Thanks for the help.

I think what I'm going to do is open mb trading and interactive brokers forex demos along side oanda and watch the spreads during "market moving, etc." news.

With the ECN's I guess it's a more legitimate spike, whereas oanda is broker-induced. I've never traded with an ECN spot forex broker, but I have traded currency futures and I know with futures these news events that I'm talking about have very little effect on the spread, while oanda has widened it to 10 pips!

Tomorrow's an FOMC day so I really won't worry about it tomorrow, but over the next few days I'll watch the EUR/USD spread with MBT, IB, & oanda during news (since I can't trade then, anyway!).

I'll report back next week sometime what I find for anyone who's interested.

-Cory