At BeamFX we realize the importance of providing our clients with low trading costs. For that reason, our primary offering is a spread of 1.4 on EUR/USD during normal market conditions with no commissions.
The second type of trading cost, which we consider to be more important, is slippage. Slippage is the difference between the price at which you bought or sold and the price at which your order actually gets filled.
At BeamFX, one of the reasons that we chose to become a guaranteed introducing broker of ILQ is because of their automated dealing desk system, which provides high quality executions.
To illustrate the importance of getting good fills on your trades, we present the following hypothetical example. If Trader 'A' executes a buy order on EUR/USD at 1.30121 and gets filled at 1.30127, then he was slipped 0.6 pips. If Trader A then executes a sell order at 1.30374 and gets filled at 1.30379, then he was slipped 0.5 pips. The total slippage on entering and exiting the trade would be 1.1 pips! Let's assume that Trader A's broker offered a 0.8 spread on EUR/USD with no commissions. The spread is low, but the total trading cost on that one trade adds up to 1.9 pips. (0.6+0.5+0.8). Often times, slippage on the entrance and exit of a trade adds up to more than what a trader pays in the spread!
It's important to note that no matter what broker you trade with, you will most likely incur slippage costs on a regular basis, even if it's a small amount. We don't claim to offer slippage free trading, we simply invite you to compare the overall trading costs at ILQ (Spread + Slippage) with costs at any other broker.
Free Demo Account Link: http://www.beamfx.com/accounts/ILQdemo.html
No comments:
Post a Comment