Forex Arbitrage

[whyohwhy]

fxtrader01
No experience no, but I may try their demo myself. As the name implies, they operate as a 'prop' company, so they want you to churn your trades as much as possible. They say you can trade anonymously through them which removes the problem people have with traditional spread companies.....dealer intervention!

[fxtrader01]

Originally Posted by whyohwhy

fxtrader01
No experience no, but I may try their demo myself. As the name implies, they operate as a 'prop' company, so they want you to churn your trades as much as possible. They say you can trade anonymously through them which removes the problem people have with traditional spread companies.....dealer intervention!

I checked with them today. The minimum deposit to start with is $25,000.

[sellputs]

Tried to arb different brokers on spot EUR/USD. Signed up as an IB to get the rebates and tried to make a pip or b/e at worst on trades. Made money for a while then started getting too many rejected trades. It can be done but I think you need the rebates and automated software to win consistently. Moved to fx options once started losing on spot arb. Easier to arb, but harder to find fx option brokers with similar contracts. Finally gave up, trying something else

[whyohwhy]

Originally Posted by sellputs

Tried to arb different brokers on spot EUR/USD. Signed up as an IB to get the rebates and tried to make a pip or b/e at worst on trades. Made money for a while then started getting too many rejected trades. It can be done but I think you need the rebates and automated software to win consistently. Moved to fx options once started losing on spot arb. Easier to arb, but harder to find fx option brokers with similar contracts. Finally gave up, trying something else

Not easy eh? I tried doing the same a few years back with UK spread companies, before they sorted out their lagged prices....now its just impossible to beat them.

Did you use PropFX sellputs?

[Elroch]

Arbitrage of this type at a single FX broker seems hopelessly unlikely. You have to beat the sum of 3 spreads. Interbank players have access to the prices on which the broker's prices are based at typically lower spreads and will have ensured they are in line already.

Given the broker's quotes do vary slightly, there seems more hope for interbroker arbitrage in the same market, but I doubt they will often differ enough to pay two spreads.