Tips for trading at ECN Currenex,Hotspotfxi based on my understanding
The problem to scalp on hotspotfxi is just liquidity.
The trouble on Currenex besides liquidity is the so said whitelabel .
Actually there are 2 tiers of FXPB ( FX prime broker ) with currenex:
tier 1 : big name leading banks who are on the list of currenex PB
Clients should have decent fund or credit line with them to handle the business directly with such big name.
PB will not take any position against clients but only charge commision per Round trading .
tier 2 : whitelabel partners shown on currenex.com
in this group there are 2 business models
a. pure tier 2 PB
which means there are just a sub-broker (agent ) to serve smaller clients who are not accepted by tier 1 PB
SO, same as tier 1 , will not take any position against clients but only charge commision per Round trading .
b. whitelabel model
being MARKET MAKER on the platform , they use currenex's platform(technology ) to create an inhouse market while the spreads might be same or differ with the one on currenex's main platform, SO the dealer could direct pass clients' order/position to currenex's main platform or keep them at the in house market as per this makret maker's discretion.
SO, scalping / arbitraging might hurt such group's benefit .
CONCLUSION
To enjoy scalping arbitraging , IMHO the best way is use Tier 1 or Tier 2 a .
The problem to scalp on hotspotfxi is just liquidity.
The trouble on Currenex besides liquidity is the so said whitelabel .
Actually there are 2 tiers of FXPB ( FX prime broker ) with currenex:
tier 1 : big name leading banks who are on the list of currenex PB
Clients should have decent fund or credit line with them to handle the business directly with such big name.
PB will not take any position against clients but only charge commision per Round trading .
tier 2 : whitelabel partners shown on currenex.com
in this group there are 2 business models
a. pure tier 2 PB
which means there are just a sub-broker (agent ) to serve smaller clients who are not accepted by tier 1 PB
SO, same as tier 1 , will not take any position against clients but only charge commision per Round trading .
b. whitelabel model
being MARKET MAKER on the platform , they use currenex's platform(technology ) to create an inhouse market while the spreads might be same or differ with the one on currenex's main platform, SO the dealer could direct pass clients' order/position to currenex's main platform or keep them at the in house market as per this makret maker's discretion.
SO, scalping / arbitraging might hurt such group's benefit .
CONCLUSION
To enjoy scalping arbitraging , IMHO the best way is use Tier 1 or Tier 2 a .
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