You will discover hundreds of forex brokers that traders can select from, there are those forex brokers that have been around for a while and brand new forex brokers that are shaking up the market with razor sharp spreads and lightning fast trading platforms designed for scalpers and active traders. In this review I decided to match FXCM to one of the fastest growing fx brokers on the planet, IC Markets.
Both fx brokers are quite respectable and have good forex offerings. FXCM largely caters for brand new traders in the forex market and IC Markets caters more for scalpers and active day traders looking for low spreads and fast order execution.
When it comes to scalping there are several important things to examine, these are spreads, slippage and order speed. It's pretty simple to check these three things if your fx broker uses MetaTrader 4. Fortunately, both IC Markets and FXCM use MetaTrader 4 so testing these essential features is really straightforward for any trader to perform from the comfort of their very own lounge room.
I made a decision to test these three elements myself to help me decide which forex broker was better for Scalping. Fortunately, I already had accounts with both brokers so this made testing a great deal easier.
Most of my scalping is on EUR/USD, IC Markets beats FXCM in spreads on this pair, their average spread is 0.1 pips and frequently sits at zero pips, my FXCM Pro forex account shows an average spread of 0.5 pips and never goes lower than 0.3 pips. From my testing across a number of broker trading accounts IC Markets has by substantially the best EUR/USD spreads in the world, this truly is a scalpers dream.
For tick scalpers slippage is a really essential element to consider as slippage can have a significant impact on you overall account profitability. Slippage is less significant if you are a long term fx trader and don't trade often for small price movements. In order to monitor slippage I deployed the exact same EA with both forex brokers so the exact same trades were taken. Across the eighty five deals executed it was rather apparent that IC Markets had significantly less slippage than FXCM, this naturally makes them a better broker for scalping.
Order latency was the last characteristic examined on both broker platforms, again this investigation was conducted using an EA. Trade speed was monitored across both forex broker accounts on the 85 trades executed, it was interesting to note that the latency on trades executed utilizing the FXCM trading platform was somewhat higher than the latency at IC Markets. I would have thought that FXCM would beat IC Markets in the order latency test however this was not the case, I later discovered that IC Markets Metatrader 4 server is in NY4 this is the reason their trade execution is so lightning fast.
Both fx brokers are quite respectable and have good forex offerings. FXCM largely caters for brand new traders in the forex market and IC Markets caters more for scalpers and active day traders looking for low spreads and fast order execution.
When it comes to scalping there are several important things to examine, these are spreads, slippage and order speed. It's pretty simple to check these three things if your fx broker uses MetaTrader 4. Fortunately, both IC Markets and FXCM use MetaTrader 4 so testing these essential features is really straightforward for any trader to perform from the comfort of their very own lounge room.
I made a decision to test these three elements myself to help me decide which forex broker was better for Scalping. Fortunately, I already had accounts with both brokers so this made testing a great deal easier.
Most of my scalping is on EUR/USD, IC Markets beats FXCM in spreads on this pair, their average spread is 0.1 pips and frequently sits at zero pips, my FXCM Pro forex account shows an average spread of 0.5 pips and never goes lower than 0.3 pips. From my testing across a number of broker trading accounts IC Markets has by substantially the best EUR/USD spreads in the world, this truly is a scalpers dream.
For tick scalpers slippage is a really essential element to consider as slippage can have a significant impact on you overall account profitability. Slippage is less significant if you are a long term fx trader and don't trade often for small price movements. In order to monitor slippage I deployed the exact same EA with both forex brokers so the exact same trades were taken. Across the eighty five deals executed it was rather apparent that IC Markets had significantly less slippage than FXCM, this naturally makes them a better broker for scalping.
Order latency was the last characteristic examined on both broker platforms, again this investigation was conducted using an EA. Trade speed was monitored across both forex broker accounts on the 85 trades executed, it was interesting to note that the latency on trades executed utilizing the FXCM trading platform was somewhat higher than the latency at IC Markets. I would have thought that FXCM would beat IC Markets in the order latency test however this was not the case, I later discovered that IC Markets Metatrader 4 server is in NY4 this is the reason their trade execution is so lightning fast.
About the Author:
If you are in the market for a forex broker which you can implement your scalping trading strategies with you ought to look no further than IC Markets True ECN account, according to my testing it genuinely does beat the FXCM Pro account in all facets tested. Naturally you should perform your own testing with both of these fx brokers before opening an account.
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