MoneyTec Traders Community Forum - View Single Post

KPcurrency · 19-01-2005, 16:27

There are many things to consider. Here is just one.

Most, if not all, traders would do well to think about minimizing their trading cost. If you trade the spot market, you can find a broker with a free data feed , free trading software, and no commissions. Of course you have to overcome the spread so there is a hidden commission, but it is said to be no commission.

If you trade futures, you have to pay commissions, pay for a data feed, and buy software. You also have exchange fees and order entry software fees (i.e. PATS).

Certainly some traders who trade the spot market still use esignal for data and software, but the point is you could get it for free. So that 100 dollars per month could be better used in a trading account. Metastock, for example costs more than 1000 dollars for the realtime version and you own it, but then you still have to pay for data, and that data is not the same as your broker may be quoting (for spot)

Plus, you need to include the amount of money you have to set up your account. Leaving how much you should have aside (in the end, the amount you have is the amount you have: it would be nice to have 20,000.00 to start but most don't), most spot fix brokers don't require as much to open an account as a futures broker would. You can open an account with some spot fix brokers for 300 dollars.

19-01-2005, 16:27	#3
KPcurrency level 3 Join Date: Dec 2004 Posts: 257 Downloads: 0 Uploads: 0 Rep Power: 0	There are many things to consider. Here is just one. Most, if not all, traders would do well to think about minimizing their trading cost. If you trade the spot market, you can find a broker with a free data feed , free trading software, and no commissions. Of course you have to overcome the spread so there is a hidden commission, but it is said to be no commission. If you trade futures, you have to pay commissions, pay for a data feed, and buy software. You also have exchange fees and order entry software fees (i.e. PATS). Certainly some traders who trade the spot market still use esignal for data and software, but the point is you could get it for free. So that 100 dollars per month could be better used in a trading account. Metastock, for example costs more than 1000 dollars for the realtime version and you own it, but then you still have to pay for data, and that data is not the same as your broker may be quoting (for spot) Plus, you need to include the amount of money you have to set up your account. Leaving how much you should have aside (in the end, the amount you have is the amount you have: it would be nice to have 20,000.00 to start but most don't), most spot fix brokers don't require as much to open an account as a futures broker would. You can open an account with some spot fix brokers for 300 dollars. __________________ Volume Spread Analysis: reading the Tape like the Pros do. Without VSA-- you're playing checkers, while the Smart Money is playing chess. Wake Up.