|
KwikFX vs. Other Online Brokers
Real-time execution from live two-way
quotes
KwikFX offers real-time execution from live, two-way quotes—even
for small deal sizes. Publishing real-time prices ensures that you
always receive a firm, fair price on all transactions, and also
facilitates instantaneous deal execution.
Be aware that other brokers with similar claims of real-time execution
from live quotes may in fact limit that capability to only large
deal sizes, typically US$1million and over. Other clients must request
a price before dealing, affording the broker the opportunity to
check a trader's existing position and 'shade' the price (in their
favor) a few pips depending on the trader's position. Many firms
even require the trader to disclose whether they are a buyer or
seller before they will make a quote, likewise affording them the
ability to raise or lower their price accordingly.
With KwikFX, you will never wait for a broker to respond to your
request for a dealing price. Because you can deal on our live prices,
you can be sure that the price KwikFX makes for you is the exact
same price KwikFX offers everyone else in the world. We will not
adjust our price against your position.
Consistent Interbank dealing spreads
.gif) KwikFX's real-time dealing spreads are always at Interbank
prices, regardless of deal size. As a result, you can execute transactions
of between $100,000 and $10,000,000 at the same prices the Interbank
market typically offers only their large institutional clients. For
transactions over $5,000,000, the spread will sometimes be tighter
than Interbank dealing spreads, depending on market conditions.
Many online brokers claim to offer similar tight spreads, with
some even promising 1 pips on the most widely traded currency pairs
such as EUR/USD or GBP/USD. However, these claims usually come with
a caveat, usually in the form of a commission or transaction fee,
or are only available during slow market periods.
Consistent liquidity under all market conditions
Overall, the liquidity of the FX market is far superior to
that of other financial markets. However, in times of high market
volatility, liquidity is a serious concern for FX traders.
FX matching systems can not provide the liquidity offered by KwikFX
because you must rely on other investors to accept your offer to
buy or sell. Likewise, if you must request a price from your broker
before dealing, the time it takes to execute a trade can take up
to one minute or more. Under quiet market conditions neither will
have any significant impact on your profit potential. However, in
times of market volatility there is a real possibility that you
will not be able to open or close a position before the market moves
against you.
A trader using an FX matching system not only has to worry about
getting a bad fill in times of market volatility, but also about
there being sufficient resting orders to easily get out of a position.
Even during normal markets many traders complain that these services
don't have the liquidity to let them trade more than a few hundred
thousand dollars in any one trade.
In contrast, KwikFX traders are from "the Street" and are always
ready to make an Interbank dealing spread, two-sided market for
any deal - from $100,000 to $10,000,000 or more. You can always
deal directly from our published bid/ask quotes, and normal execution
time is just a few seconds.
With KwikFX, you are always allowed, and even encouraged, to
leave limit and stop-loss orders as a risk minimization strategy.
Because KwikFX is always making tight quotes from which clients
can deal directly, during volatile markets our clients are more
likely to get filled at their price than those utilizing an order
matching service.
No requotes
Our software was designed for instantaneous dealing. Once
you have submitted a deal ticket via our dealing software, your
trade will be executed according to your order type and a deal confirmation
returned immediately. So you will almost never receive a requote
from KwikFX traders. Requotes are often used by other FX brokers
as a means for them to add a few pips to your price, although the
market has not even moved. When was the last time you got a requote
that was better than the original dealing price?
Experienced Traders
The professionalism of the KwikFX trading team is quite possibly
our most significant advantage over other online brokers. The reason
we are able to consistently offer tight, aggressive prices on deals
of all sizes is because KwikFX employs only experienced FX traders
from top tier firms who are accustomed to quoting and dealing in
fast moving markets. If you choose an online broker that staffs
their desk with junior-level traders, you are at a greater risk
that trades will not be executed in a timely manner or at the best
possible price.
Investor confidence
It is well known that the FX market is not subject to the
same regulatory issues as the futures and equity markets in the
United States. As a result, a number of disreputable FX trading
firms have materialized solely to take advantage of unsuspecting
investors. In fact, the Commodity Futures Trading Commission (CFTC)
has successfully brought action against a number of these firms
and has issued a consumer advisory to warn investors and educate
them about the signs of fraudulent business practices.
Other firms, while not necessarily intent on defrauding investors,
may be managed by inexperienced people who are unable to effectively
manage the risks involved with trading millions of dollars each
day. Many do not have the financial backing necessary to build an
adequate technology infrastructure.
But don't just take our word for it. Before you invest your risk
capital with KwikFX or any FX trading firm, we urge you to perform
due diligence by researching the background of the company and management
team, and ensure that your money is appropriately protected. Finally,
always open a demo account to experience the software and services
firsthand before trading with actual funds.
|
