Hi folks,
I have a simple but important for me question: What deposit should I have to trade forex without spreads? I heard that on interbank market where leverages are max 1:10, there is nothing charged as spreads… Is it true?
Considering 1:10 leverage size I think your trading margin can’t be less than 100 K to take yourself out on the level of interbank market. Embarking on interbank trading may entail some tensions with regulatory financial organs, tax bodies because you will have to act according their rules, not loose recommendation of offshore countries
I have tried once to make a contract with my bank providing that I deposit 10 K and will trade with 1:10. But try to read their conditions. Financial commissions in my country are obsessed with money laundering struggle, so you will find your trading conditions incompatible with normal profitable trading. Maybe I need to move to another country to find better trading environment there.
Banks trading sucks. No advantages over offshore brokers, except of course some vague hopes of funds safety. Actually a lot of banks went busted in Russia (the country where I live) so I trust them not less than to offshore companies…
Yeah their services are awful. They only seek for their personal profit, it is highly possible that they will not move your orders to interbank market, palming off fake quotes or make the market artifically.
Brokers don’t move small orders on interbank. Generally, they just accumulate orders of bulls or bears and then open aggregate position on market. It doesn’t make a sense for them to open every micro or small lot position, because this margin is not enough even with leverage/