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Re: Forex Arbitrage
Exactly - the speed and spreads are key, as well as the ability to enter your own bids and offers rather than cross the spread every time.
And another thing that makes a difference for arbers at banks is that they get some client flow as well. So you might get two legs of a EUR/USD/CHF trade done and then a customer comes in and buys USD/CHF from you at a wider price than you could get even by sitting on the offer on EBS. Plus you may have another bank's platform on your desk, and voice brokers as well. It's the diversity of liquidity that often makes the difference, so it's really not gonna be an option for 99.9% of retail traders.
But you don't necessarily need software. The guys who do it on bank spot desks are just unbeleivably fast on the keypad (no mouse - custom built EBS / Reuters keypads only). For those who played video games in the 80s, think track and field and you'll get the idea ;-)
GJ
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