a. Provide reliable and expeditious execution.
b. Prices are streaming and executable.
c. Offers a fast round turn on execution time.
d. If you hear complaints about a particular
firm, pay attention and investigate further.
e. Check if your broker has a retail platform
with liquidity that can be scaled to
encompass institutional customers.
f. Check if your broker provides, or has the
ability to do so, liquidity to third parties
(e.g., hedge funds and institutional
investors). This indicates a secure and
stable firm since it’s difficult to obtain vast
liquidity.
g. Technology that delivers accurate pricing
is more reliable. Stops and Trailing Stops
should reside on the server, not on your
desktop.
h. Provides executable and reliable
pricing during volatile markets; if
filters are involved, you will miss all
the prices in between.
i. Check if your broker has a good
working relationship (i.e., established
credit lines) with top-tier banks.
j. If possible, visit your broker -- get to know
who you are working with.
Slippage conclusion
Markets, especially those that trade
electronically like the forex market, are not
static and are therefore subject to slippage.
Experienced traders understand the conditions
when slippage is most likely to occur, and
either avoid trading during periods of extreme
volatility or accept it as part of the risk/reward
trading profile. As a market maker, FX Direct
Dealer is committed to providing all our clients
with transparent market liquidity at all times.
Although slippage can occasionally occur, it is
a direct result of market volatility and an
increased risk/reward profile. If you feel that
your market liquidity is any way being
manipulated or in any way not congruent with
fair trading practices at market prices, you
should not hesitate to you to speak with your
liquidity provider.
Slippage
