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With an 'ECN style' broker - what was the max slippage you experienced and what was the the average?

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gordon
2326
gordon  

Anybody that has any experience with 'ECN style' brokers (with a LIVE account), I'd appreciate if you can share:


1. What was the max slippage you experienced for a market order? (slippage -> I mean the difference in points between requested price and the actual opening price).

2. Roughly, what is the average slippage u experience with market orders?


To clarify, 'ECN style' brokers are those that ignore slippage and give you 'the best market price at the time', usually they're using BT bridge. I need this info to asses the affect of slippage on my trading strategies. Obviously I can't get this kind of info from a demo account, only from a LIVE one. My broker didn't have an answer for this question besides 'we give u the best market price at the time'.


Thanks.

Helmut
410
Helmut  
My experience so far with FXopen ECN account has been zero slippage. Every live order has been filled within seconds at the quoted price.
gordon:

Anybody that has any experience with 'ECN style' brokers (with a LIVE account), I'd appreciate if you can share:


1. What was the max slippage you experienced for a market order? (slippage -> I mean the difference in points between requested price and the actual opening price).

2. Roughly, what is the average slippage u experience with market orders?


To clarify, 'ECN style' brokers are those that ignore slippage and give you 'the best market price at the time', usually they're using BT bridge. I need this info to asses the affect of slippage on my trading strategies. Obviously I can't get this kind of info from a demo account, only from a LIVE one. My broker didn't have an answer for this question besides 'we give u the best market price at the time'.


Thanks.

gordon
2326
gordon  
engcomp:
My experience so far with FXopen ECN account has been zero slippage. Every live order has been filled within seconds at the quoted price.

I have had experience with a few 'ECN' brokers since this post (I mean with Live accounts)... I don't have enough statistics for either one to accurately answer my own questions, especially since 'abnormal market conditions' seems to be the norm these days. Additionally, some of the stats have not been properly collected.

For max slippage I have seen up to about ~7 pips (70 points on a 5 digit broker), which is quite a lot, but it was during news. On average slippage was in the order of less than a pip. Slippage was roughly the same across brokers, but varied considerably in abnormal market conditions.

Helmut
410
Helmut  
gordon:

I have had experience with a few 'ECN' brokers since this post (I mean with Live accounts)... I don't have enough statistics for either one to accurately answer my own questions, especially since 'abnormal market conditions' seems to be the norm these days. Additionally, some of the stats have not been properly collected.

For max slippage I have seen up to about ~7 pips (70 points on a 5 digit broker), which is quite a lot, but it was during news. On average slippage was in the order of less than a pip. Slippage was roughly the same across brokers, but varied considerably in abnormal market conditions.

Interesting, Gordon

Would it be permissible for you to list the ECN brokers where slippage was more than zero so they can be avoided?

I know that most ECN brokers take first bite at your bid/ask, but not at the expense of your nominated slippage.

Regards, Helmut

gordon
2326
gordon  

engcomp wrote >>

Would it be permissible for you to list the ECN brokers where slippage was more than zero so they can be avoided?

I know that most ECN brokers take first bite at your bid/ask, but not at the expense of your nominated slippage.

In an ECN environment slippage is inherent, normal and unavoidable, so your question makes no sense. There's an excellent explanation here -> http://www.forexfactory.com/showthread.php?t=8046. I suggest u read it. BTW, a true ECN would not "take a bite" at your bid/ask either. They would make their money strictly from commissions and nothing else.


Anyway, to answer your question - I experienced slippage occasionally with all the 'ECN' MT4 brokers I worked with (not surprisingly).

ben
7
ben  
gordon:

In an ECN environment slippage is inherent, normal and unavoidable, so your question makes no sense. There's an excellent explanation here -> http://www.forexfactory.com/showthread.php?t=8046. I suggest u read it. BTW, a true ECN would not "take a bite" at your bid/ask either. They would make their money strictly from commissions and nothing else.


Anyway, to answer your question - I experienced slippage occasionally with all the 'ECN' MT4 brokers I worked with (not surprisingly).

Opening order is never such a problem, but closing yes ! (That's where brokers earn their money)

Could you tell us more about closing positions with an ECN ?

Is it OK to close 20 positions quickly ? (impossible with my classical broker, plenty of error messages)

gordon
2326
gordon  
benandfils.com:

Could you tell us more about closing positions with an ECN ?

Is it OK to close 20 positions quickly ? (impossible with my classical broker, plenty of error messages)

There's no 'merge orders' if that's what u r asking. U still need to close each order separately. Usually ECN-style brokers claim their execution is faster... I haven't seen sufficient proof of that. The reason it might seem faster is because they have no requotes at all. Then again, they ignore slippage, so it's not surprising...
Helmut
410
Helmut  
gordon:

In an ECN environment slippage is inherent, normal and unavoidable, so your question makes no sense. There's an excellent explanation here -> http://www.forexfactory.com/showthread.php?t=8046. I suggest u read it. BTW, a true ECN would not "take a bite" at your bid/ask either. They would make their money strictly from commissions and nothing else.


Anyway, to answer your question - I experienced slippage occasionally with all the 'ECN' MT4 brokers I worked with (not surprisingly).

What I meant by "first bite" is that the few I have checked out all reserve the right to take the other side of your trade at the currently quoted prices, i.e. no requote.
gordon
2326
gordon  
engcomp:
What I meant by "first bite" is that the few I have checked out all reserve the right to take the other side of your trade at the currently quoted prices, i.e. no requote.
The more serious ones will only do that for small lot sizes (which makes sense) or have a relatively large minimum lot size (and then guarantee that all orders are passed on). This has nothing to do with requotes though... They don't have requotes cause there's no slippage parameter. They simply promise to give the best available price at the time.
Mahbub360
3
Mahbub360  

HI theere,

i am Mahbub360 - not very old in this trade , just 9 months - i trade with exness. On last trading day i took a positive slippage of around 4 pips in ECN Account at exness. still i am thinking of switching to pepperstone or XM. any suggestion?

Ex Ovo Omnia
3223
Ex Ovo Omnia  
Mahbub360:

HI theere,

i am Mahbub360 - not very old in this trade , just 9 months - i trade with exness. On last trading day i took a positive slippage of around 4 pips in ECN Account at exness. still i am thinking of switching to pepperstone or XM. any suggestion?

As long as discussing brokers is prohibited in this site, nobody can make any suggestion.
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